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Author Topic: One Call - Excess insurance cover  (Read 3325 times)

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pib

  • Forum Member
  • Posts: 3229
Re: One Call - Excess insurance cover
« Reply #30 on February 15, 2019, 10:32:48 pm by pib »
Every year since driving I've had to shop around for cheaper quotes as my insurance renewal was always higher.

I currently work in the accident repair and insurer sector and have worked with all of the main insurers in the UK at one point or another and everyone has told me the same thing when it comes to renewals, they purposely increase it as statistically, you are more likely to claim with each passing year. 

It's no secret that they price it based on how likely you are to claim. Obviously previous claims, age and area play a large part but the biggest factor is time. You are more likely to claim over a 10 year period than you are over a 1 year period. So for a insurance company, with every year a driver renews without claiming the risk of a claim increases.  Therefore it is in the interests of the insurance companies to use low and attractive rates for new customers, and then after a year increase the cost as the odds of that driver claiming increases year on year. If the absolute worst happens and you leave for another insurer, they have already taken money from you for at least a year and haven't had to spend anything on you other than a few letters/emails and a few phone calls.

Being no different to the gambling or stocks industries, it's based solely on statistics and loyalty does not weigh the stats in your favour.

That doesn't make any sense. It's not the likelihood of a claim over a ten year period that's the point. It's the likelihood of a claim in any given year. You're paying for one year at a time, not for a ten year period. Therefore the cost should be based on the risk you pose in this given year, not over a ten year period.

Plus, we all know that if we switch every year, we'll pay far less over a ten year period than if we stay with the same insurer.

Which leaves only two logical conclusions about staying with the same insurer.

1) They put the price up every year because the risk IN EACH YEAR is greater than the year before, but only if you stay with that insurer; if you change insurer, the risk, for some reason, drops.

2) They are fleecing drivers who are too busy, lazybor forgetful to change, by engaging in the age old process of inertia pricing.

I know which explanation makes more sense to me.

Sometimes you don't even have to change insurer.

I had a renewal quote through a couple of years ago. Having done some research, that same company was still the cheapest (and cheaper than the year before) if I rejected the renewal price and just started again.

Phoned them to ask if they would make it easier for me and just match the renewal price to the new online quote. They said "no, we can't renew it any cheaper, so if you want that price you'll have to cancel and buy it online at the new price"

Pointless load of admin just to get to the price they could've sorted within 30 seconds for me over the phone if their pricing tactics weren't so cynical. Not being one to cut my nose off to spite my face I went through the rigmarole, but bloody hell.



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Padge_DRFC

  • Forum Member
  • Posts: 4841
Re: One Call - Excess insurance cover
« Reply #31 on February 24, 2019, 02:07:30 pm by Padge_DRFC »
Don’t pay it. It’s a scam.

Why?

 

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