I regularly get a cheaper quote as a 'new' customer than the renewal quote, for exactly the same cover. Though normally in my experience the insurance company gives up without a fight and price-matches when I phone them... shame we all have to waste our time going round the loop though. Presumably lots of profit comes from all the customers who don't bother to haggle.
*Most* of the profit comes from customers who don't bother to haggle. First year discounting is so deep that the policy usually runs at a loss. Most companies (worldwide) use motor insurance as a loss leader, hoping to cross-sell other, more profitable insurance covers.
I'm aware of the loss leader principle on Car insurance, but this wasn't actually that, it was the more common building & contents type..
I'm most surprised that the same company offered me (despite having my details forwarded by the comparison engine) the same cover (ignoring all their 'extras' which they'd been loading over the last two years to justify the cost) and then seemed to be a bit surprised when I didn't want to do business with them.
Just had a similar argument with my pet insurance company. They quoted me one price, sent the policy with that price on it and then took a higher amount out of my bank account.
On arguing it through with them they explained that the reason they'd taken a higher amount is because, as a long standing customer, they thought I'd like their premium package which offers cover including "payment of my parking costs at any UK airport".
In what way could my need to park at an airport be linked to any illness or injury suffered by my cats? I'm working at drafting a letter to them which asks for an explanation of this logic.
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I'm most surprised that the same company offered me (despite having my details forwarded by the comparison engine) the same cover (ignoring all their 'extras' which they'd been loading over the last two years to justify the cost) and then seemed to be a bit surprised when I didn't want to do business with them.
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On arguing it through with them they explained that the reason they'd taken a higher amount is because, as a long standing customer, they thought I'd like their premium package which offers cover including "payment of my parking costs at any UK airport".
In what way could my need to park at an airport be linked to any illness or injury suffered by my cats? I'm working at drafting a letter to them which asks for an explanation of this logic.
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