I know we regularly talk about how if you auto renew and don't price compare etc then companies are not loyal to their customers.
But this takes the biscuit, colleague has been with the AA for breakdown cover for last 25 years. Always renews with them because they are "The AA".
Last year's breakdown cover premium was £111. The equivalent premium online is £129.
AA have auto renewed and taken the annual amount from her bank account and charged her
£208.36 !!!!!!
Now her mother passed away a fortnight before renewal so understandably it wasn't at the forefront of her mind - phoned the AA and they immediately offered to reduce it to £111 and refund the difference!
She has demanded her money back and is going to Green Flag that is about £80 mark for the same cover.
And as an aside, looking at the AA prices, I just can't see why anyone who shops around would ever go with them!
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Why? Because they are "the AA". And because the renewal is made automatically, so many people don't think to even look at it.
Its something that bugs me about utilities too. We're forever bombarded with 'special offers' that are really designed to tie us into contracts just long enough to hike the prices up.
Which is why I stay with my gas supplier: they have just one rate for everyone, its invariably cheaper that the competion over the year. Once, I did call up (and was answered by a real person, not a machine!) when I saw a new tarrif advertised - to be told I'd already automatically been moved to it because it woudl be cheaper for me. That's proper service.
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Why the AA? Because when you need them, you really need them, and our experience has been that they always turn up and always do a good job. That's worth something - although we still negotiate at renewal time.
Green Flag was our supplier in my company car days. The one time I needed them, the experience put me off ever spending my own money with them: all day to appear, a word no-one should use at work left on my voicemail and (I strongly suspect) small personal items removed from my flooded car when they eventually did get round to recovering it. There isn't a bargepole long enough.
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I know what you mean, I've just left after 10 years of paying £75-£80 and being renew quoted at £150+ for basic roadside/recovery (not home start). I've gone with Start Rescue for same level of cover for £39, time will only tell how good they are. I've not used the AA in the last 2 years and that was only for a fuel run out. In the 10 years over 5-6 cars, I've used them 4 times.
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I switched about 4 years ago from AA to RAC after 3 years of them trying it on, because the RAC seemed to give a no-call out discount equivalent to the internet/new customer discount, so at least there wasn't a loyalty penalty.
Not sure if they still do that - the renewal was £180+ last year (people-based, including caravan recovery). Nearly halved that by moving to Green Flag.
Given that this is really more about peace of mind than anything else, I'd be happy to pay an excess when I use the service, in return for a lower premium and a promise that they wouldn't penalise loyalty.
Tricky I suppose to make anything fair work - the reality is that in insurance, to compete profitably more or less necessitates ripping off loyal customers. Any insurer who just offered fair premiums across the board would lose existing clients to competitors, and capture very little new business. Worth at least thinking about some regulation I should think.
Maybe the FCA will have a go at it under Martin Wheatley, who has said he wants focus on fair treatment and good outcomes, under a "judgement-based" approach rather than what he calls tick box compliance.
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We drive 1 x Honda Jazz and 2 x Toyota Yaris. No breakdowns so no cover needed.
Well none after 9 years so far...that's a lot of premiums not paid.
Last edited by: madf on Fri 20 Dec 13 at 13:06
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I pay for breakdown cover for the convenience; it's for when everybody else has broken down too and they won't recover non-members.
I go for the AA as it covers me when a passenger in other people's cars too. Again, it's all about my convenience.
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To respond to madf's post ( and many years ago I lived at Cellarhead-He should know where that is), I had a 54 plate jazz CVT for 7 years.
The day before I was due to take it in to swap for an i-Shift Jazz it failed to start-flat battery.
Called Gem-got it jump started, got home, put battery on charge overnight and then drove to Coventry for changeover.
A couple of weeks before that I had gone to Chippenham to test drive i-Shift and new CVT Jazzes (? Jazzi) in the Smart Roadster, and the same thing happened-got jump started and went home and got a new battery fitted.
Claimed back from Gem-no problems.
They win awards each year from AutoExpress, and are reasonable in cost.
Before those two incidents I hadn't needed them for years, but as has been said-when you need them, you need them.
Also Gem cover me for all three vehicles, including a 3000kg Camper, 6 metres long, and I am also covered for any vehicle in which I am a passenger, even if it isn't mine.
I looked at AutoAid conditions-recommended on here or the other place, and although cheaper they did not have as good cover.
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Ha, a friend who worked for them nearly got done over in the same way..
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AA renewals - Gromit
