Products that renew each year e.g. Insurance Shold loyal customers be penalised?

By : Forum Moderator
Published 19th November 2014 |
Read latest comment - 19th November 2014

For the first time in about 4 years instead of automatically renewing all of my insurances I have shopped around, with quite a saving. It is only when I have called to cancel that I have been offered better prices. It seems that the more loyal you are , you get the highest prices.

I just wondered if anyone on the forum used any kind of incentives for loyal customers to keep them from shopping around or whether doing a good job is enough.


Angela
My views & opinions are my own
Comments

This has always irked my insides, new customers get joining offers which are better than the offers that existing long-term customers are on.

I'm in retail and existing customers get 10% off of their purchase as a thank-you for coming back.


Thanks,
Kempres

We always change our house and car insurance every year.  You get the cheapest deals and you can even get cash back through topcashback or quidco if you're lucky. It's ridiculous that the renewal prices are so high but they bank on people being too lazy to change.  

 


This is a real raw spot, why on earth don't you get rewarded for being a loyal customer? Instead the policy seems to be for most major companies and suppliers that most people are too busy to shop around, are signed up on direct debit so just take the money and don't worry about being competitive, save that for new customers.

It's an interesting if annoying business model, but wouldn't it be nice if someone broke the mould, valued your custom and made sure you got the best competitive deal each year. You would sing their praises from the roof tops, generating word of mouth and they wouldn't need to spend a fortune on stupid adverts.

Everyone is guilty, Banks, Insurance, Utilities... hmm realised I've started ranting 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

You used to get a renewal discount back in the day, seems that these have been lifted.

I look after my Mums policies for her - one of hers came due the other day - it had gone up from £147 to £170 something. Rang them up - no thats the best we can do - its gone up due to claims in the area, but i haven't made a claim was the reply!

After a few moments of arguing i replied i would go and get alternate quotes - nobody was any cheaper. 

Rang them back, by accident i pressed the digit to be put through to the cancellation/retention team who immediately reduced the price to the same as we paid the year before.....

I was about to pay the best part of £30 more !!!!! 

Used to spend a lot of time defending insurance companies in my days as a broker - how the hell can i defend that !


Clive

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