Why don't insurance companies want to keep our business?

[RainbowFire]

It's that time of year again, the renewal has come through on the Bimmer. Co-Op are "pleased" to inform me that my premium has gone from £290 to £400! Why? This happens every year, a massive increase as if to say "screw you" for coming back to us. I don't think I've been with the same insurance company for more than 12 months......renewal arrives on the mat, massive hike, 5 minutes on GoingToCompareZeMeerkat and boom, same or less than last year. So the insurance company loses £300 instead of fleecing me for £400 (so they've lost that too/instead of, depending on how you look at things.) Not being a bunch of greedy barstewards would have kept my business.

 

What's even worse is when you call to not renew, there's a quick "what price have you been quoted" then "oh let me see what I can do about that" and come back with a price that's still more than GoingToCompareZeMeerkat came up with. The person on the end of the phone then seems to be in complete bewilderment as you still want to go for the cheaper offer from elsewhere

 

Why does this happen? Why do insurance companies/bokers not take the easy route to keeping business? What possible common sense reason could there be?
 

[Ootohere]

They are a Financial Services Provider and have accountants and found they make more money from those that just pay up the increased policy money than is lost be customers leaving.

If that was not the case they would not be doing it.

[YS53]

No logic with car insurance LOL

They keep trying to push prices up - but usually you can get a better deal with another company/broker 

 

But I agree it is a PITA to have to keep changing insurance provider 

[skomaz]

last year - £320 ish, renewal this year £460, shop around £235...   go figure

[Breezy_Pete]

There was also the 'data selling' aspect to valuing new customers over existing ones.  Not sure what impact GDPR has had on that though.

They used to sell your details to ambulance chasers and the like and make quite a lot of their money by doing so, I heard.

 

 

14 hours ago, Offski said:

they make more money from those that just pay up the increased policy money than is lost be customers leaving

I expect that is the crux of the matter though.

[RainbowFire]

Deed is done. Phoned and declined renewal....."let me see if I can apply a discount for you....."   "You should have done that when calculating the renewal premium"

 

Meerkats compared.....this year is £1 cheaper than last year.

 

Happy me.

Waiting to next what stupidity happens next year now..........

[MickA]

No just insurance, recently had to negotiate new deals with, Tesco mobile phone, Virgin Media, and even more recently energy company (Npower) who subsequently couldn't do a good deal so I left.

Insurance every year is a PITA and I hate doing the roaunds but in the end that's the way to go, sadly.

[Jfhuk]

Last four years have seen me having four different insurance companies, as at the end of year one they all try to increase the premium. Can’t complain as it’s been worth the effort as I’m now paying less than I was four years  ago 8-)

Edited 1 August, 2018 by Jfhuk

[SWBoy]

6 hours ago, Jfhuk said:

Last four years have seen me having four different insurance companies, as at the end of year one they all try to increase the premium.

I can't complain this year as the renewal quote for both our cars has gone down, so for the first time in many years we've not changed insurer on either car.

[MickA]

^^^ They'll get you next time

 

 

I really want to know what the formula is to stay with one company and continue to receive a decent renewal price.

I've tried most of the mainstream companies and even some I'd never heard of.  I've even manged to not have any accidents/claims, it never seems to work that way though.

I might change my tactics next time, leave my car were it can get damaged, leave it unlocked, might even nudge a few walls or knock a mirror or two off, be careless. At least it will give them reasons for inflating the price.

[Aspman]

On 24/07/2018 at 23:06, Offski said:

They are a Financial Services Provider and have accountants and found they make more money from those that just pay up the increased policy money than is lost be customers leaving.

If that was not the case they would not be doing it.

 

This. you're in a minority jumping ship every year. Same for banks, power companies etc. They all rely on customer laziness for profit and it works.

 

Saying that the last few years I've fount little benefit in moving companies. My renewals have been close to the best prices I can get without fitting black boxes or moving to some obscure company.

[KenONeill]

/\ - Likewise.