I've just got an online quote from my current insurer which is 66% of their renewal premium stated in their reminder. How much of the difference is likely to be due to it being an online transaction?
Normally, to renew my insurance I ring up and pay by debit card. If I bought the insurance online would I, in subsequent years, get a reminder to renew through the post as currently and would the premium go back up?
Would you recommend ringing up when I'm ready to renew and mentioning the online quote to see if they would reduce my renewal premium accordingly?
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>> Would you recommend ringing up when I'm ready to
>> renew and mentioning the online
>> quote to see if they would reduce my renewal
>> premium accordingly?
That's what I'd do, but with the proviso that I would check that the quote you've just got is still valid when your current insurance expires, either by ringing while it's still vaild, or getting the quote again.
No idea about the rest of your questions.
Last edited by: Mike H on Wed 20 Jun 12 at 08:35
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>>Would you recommend ringing up when I'm ready to renew and mentioning the online quote to see if they would reduce my renewal premium accordingly?
Yes. It's worked for me in the past, and not only for motor insurance. I'd be surprised if you weren't offered a reasonable discount - maybe even a price match.
Is the online quote as comprehensive as your existing cover?
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An urban myth suggests that call centre operators, on an 8 hour shift, have to meet a target of selling a target number of policies in that time. Allegedly they have some flexibility on prices, at the end of shift, to help meet their target.
On line discount is around 10% SFAIK. Aviva were offering 5 weeks free for buying on line, recently.
I have always been successful in getting a postal quote down to, or very close to, an on-line quote, specifically with LV.
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>> Is the online quote as comprehensive as your existing cover?
>>
Same company, same level of cover, and I declared all my motoring sins.
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Differences are sometimes because the online policy has different terms and conditions (ie different cover). We've been with LV for both cars for a number of years, and they advise on their renewal letters to give them a ring. About five years ago the premium on mine appeared to have crept up, so I rang.
They had revised their new business policies, and I changed to one of the new policies which offered the same level of cover, but in addition gave a number of options around things like increased personal accident benefit.
Ended up with a quote cheaper than my renewal, and, by selecting a couple of options, wider cover.
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>> Would you recommend ringing up when I'm ready to renew and mentioning the online quote
Yes. Has worked for me several years now and always have got a cheaper quote through the phone than their paper quote. To give you an example, I've just renewed again with Tesco car insurance. The letter sent to me quoted £419. I phoned them up and said why has my premium risen significantly from last year (approx £330, IIRC). Got the usual flannel about it being a bad winter again and I'm paying for everyone else's mistakes, etc.
So I then ask "it's not because of the non fault accident I had in Mar 2011 then?".
"No not at all sir" came the reply.
"Well, why is it I can get insured elsewhere cheaper then".
"What have you been quoted so far?"
"£345 with Direct Line"
"Hang on sir, we can do it for £383, and we'll either give you a £20 money voucher, or 2000 clubcard points (works out to £20 also, but worth a lot more if you use clubcard exchange and double up, or use for money off restaurants, theme parks, etc.) Plus, once you've renewed with us, we'll also send you a £15 voucher for fuel"
In short, my original renewal quote was £419, but with a quick phone call to Tesco, I got it down to £348
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>> I've just got an online quote from my current insurer which is 66% of their
>> renewal premium stated in their reminder. How much of the difference is likely to be
>> due to it being an online transaction?
>>
Les, I hope you have not woken up to this "inertia marketing" and/or "brand loyalty" ploy for the first time only this year.
www.honestjohn.co.uk/forum/post/index.htm?t=15145
The answers to most of your questions can be found by researching "inertia marketing" and/or "brand loyalty".
Last edited by: John H on Wed 20 Jun 12 at 10:30
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I have insured online for as long as I can remember. Once you have taken out the policy, it works in exactly the same way as any other method. Your documents come through the post, you may, or may not need to sign a proposal form and return it, together with your proof of your NCB, and it's job done. Your renewal reminder and any other communication come through the post, as normal.
One thing you need to be very careful of is the automatic renewal system used by many online insurers. They will often send your renewal documents under the assumption that you wish to renew, and will debit your card on the renewal date automatically, unless you contact them specifically to tell them not to.
When I sold my motorbike, it coincided with the insurance lapsing a few days later. I stupidly didn't bother doing anything, thinking I'd just let it lapse, and all would be well. When I checked the bank the following week, I saw they'd taken the year's premium. I called them and was denied a full refund, being referred to the "terms and conditions", which did state they had the right to do this. By the time they took off the cancellation charge, I got 75% of the premium back. For two days insurance on a bike I no longer owned. My fault of course, which made me even angrier ;-)
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>> I have insured online for as long as I can remember. Once you have taken
>> out the policy, it works in exactly the same way as any other method.
Does that mean that if I accepted the online quote this year (which is only 66% of the figure in the renewal reminder letter) that subsequent renewals would be based on the 66% online quote and not based on this year's renewal reminder figure?
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I think it's safest just to assume that it's not based on anything. Insurance is merely a game in which the insurance companies try to trick you into paying as much as possible, and you try to outwit them by getting comparison quotes and playing their own figures back at them.
Sometimes they back down, sometimes you just tell them to keep their policy and you renew with someone else.
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With an online quote, it might pay you to save the quote, then go a back a few days later and tinker with the saved settings but put them back to the default values that you had previously chosen, then get a fresh quote. I did this when shopping around on the Direct Line website. Each time I tried over a 3 day period I was given a diffferent price that varied between £20 to £50 to the previous quote they gave me. I went back the following week and was given yet another quote that was different to the ones the previous week.
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>> With an online quote, it might pay you to save the quote, ..........
I've done that. One thing I might do for my next quote is try it with and without my recent motoring sin declared. I'm starting to enjoy this online quote game!
Last edited by: L'escargot on Wed 20 Jun 12 at 13:17
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I'm just in the process of doing the Vitara and the Note.......same company. I also have the Jowett with them. Loyalty to customers ? Pah !
Vitara comp £219 last year which was a few quid less than 2010. Now they won't insure 'cos of my postcode. Not the worst in the land. Cheapest with another on their books was £1200.
Same everything as last year. On-line with someone else was £372 comp...come on down !
Note around £330 comp last year......£460 now. Cheapest on-line £282 comp. come on down again ! They won't be getting the Jowett when I renew...that's three they've lost !
Worst on-line on the Vitara was £3995 !!! Why do they bother to offer it ? Does anyone buy it ?
Scoundrels...I'd deposit a lump sum with the solicitor general.....if I had Lud's sort of money.
Ted
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Its got nothing to do with the transaction being on-line.
You requested a quote from your existing insurers who have not realised you are already insured with them so they have quoted you as a new customer with lots of lovely "new customer" discounts included to tempt you.
When they sent you your renewal you would have been an existing customer - i.e. ripe for exploitation.
Sadly there is now place for loyalty in the insurance game.
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L'escargot, I've just scanned through this but I simply save the online quote, phone and tell your insurer you won't be renewing (I politely decline all the silly questions) and then take the online quote. I've done this 3/4 times. As for what they base the next renewal on doesn't matter - do a new search at the time.
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I get the renewal quote, I do a price comparison on line. My inertia level is about 20 quid. If the online quotes are 20 quid better I move my insurance, if not I don't.
Same applies to household insurance.
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>> You requested a quote from your existing insurers who have not realised you are already
>> insured with them so they have quoted you as a new customer with lots of
>> lovely "new customer" discounts included to tempt you.
>>
>> When they sent you your renewal you would have been an existing customer - i.e.
>> ripe for exploitation.
It can't be that because the online form asked whether I was an existing customer and I ticked "yes".
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"I think it's safest just to assume that it's not based on anything. Insurance is merely a game in which the insurance companies try to trick you into paying as much as possible, and you try to outwit them by getting comparison quotes and playing their own figures back at them."
I couldn't agree more. Insurers just want to screw as much money out of you as they can. I see it as my duty to defy them and get the cheapest quote I can. I'm pretty much responsible or at least chief adviser for 5 cars. So I get involved in 5 insurance quote games and 5 car breakdown cover quote games annually. I have never failed in getting a substantial reduction from the renewal quote each time and usually get at least the online new customer figure in the end.**
I do the same with house insurance - buildings and contents for at least two houses and the same applies. Push insurers and they give in - if the don't I go elsewhere.
** PS not strictly true - those insurers specializing in over 50s have, in the last couple of years, refused to play ball. A right old saga I can tell you.
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After I'd done a bit of searching for the Vitara, I gave up and had a cuppa. The phone rang ten minutes later and a young man said he was from one of the quoters...I know not which one...and could he see if he could give me a decent quote. I played along and told him my cheapest quote.
We then went through the whole rigmarole of me confirming all the details I'd put in on-line.Fifteen minutes later he said he'd go and check and put me on hold.
A couple of minutes later there was a click, The Four Seasons ended abruptly and all went quiet. He never rang back so I assume he wasn't successful...pity he didn't have the courtesy to tell me that !
I'd put the wrong phone number, as usual, on the on-line form so I guess he'd used directory enquiries
Anyway, I much prefer Glazounov's ' Four Seasons ' to Vivaldi's!
Ted
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Online insurance quote vs stated renewal premium - Mike H
