New insurance renewal rules from Jan '22

[Easy-X]

Insurers must not penalise loyal customers, says FCA

Sounds good to the numpties I suppose but it highlights a fundamental misunderstanding of how insurance and underwriting works.
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Husqvarna Vitpilen 401, Yamaha XSR700, Honda Rebel, Yamaha DT175, Suzuki SV650 (loan) Fazer 600, Keeway Superlight 125, 50cc turd scooter

[Ayrton]

"Charities said other people might not be able to switch so easily. They said the problems were worse for people on very low incomes who might not have the technology to search for the cheapest deals, or those who find the calculations difficult."
Right because the country is full of people who can afford cars but have absolutely no access to the internet. I dont know what calculations they are talking about either, just plug in your details and pick the best looking policy. If people bothered to spend 20 minutes searching for insurance every year perhaps insurance companies would change to have competitive renewal prices.

Good news though. I've had to cancel my insurance before and then take it out again online because it was quite a lot cheaper than the renewal price.

[Evil Hans]

[stinkwheel]

[GettinBetter]

[Nobby the Bastard]

Ditto
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trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Sprint ST 1050

[Andy_Pagin]

My dad was a real victim of that loyalty rip-off, he stayed with the same insurance company for over forty years, never had an accident, drove bottom of the range cars like a 1300 Viva/Cavalier. When we finally persuaded him to shop around he got cover for 400 pounds less than he had been paying.
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They're coming to take me away, ho-ho, hee-hee, ha-haaa, hey-hey,
the men in white coats are coming to take me away.
Yamaha Vity -> YBR125 -> FZS600 Fazer -> FZ1-S Fazer

[Andy_Pagin]

[GettinBetter]

[Nobby the Bastard]

Underwriting is about risk. Charging more for repeat customers is gouging.
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Sprint ST 1050

[Polo]

I have it on good authority that the rating engine for one of the countries largest private general insurer, is referred to internally as the "random number generator".

[Nobby the Bastard]

So why do most of them come back with 150 quid for me and my triumph consistently every year?
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trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Sprint ST 1050

[Easy-X]

You insure your car with Tesco Insurance. But Tesco aren't really insuring anything, the business is passed to an underwriter so really we're talking about insurance brokerage (which is in the fine print if people bother to look.) So what happens on renewal date to hike the price up?

Underwriters are not static entities, they have a particular "flavour" of risk they're aiming for at any given time much in the same way an investment fund might shift from tech stocks to commodities. Renewal time comes round and they might not want your particular risk which translates to a price hike.

You could argue that your insurer broker is being lazy by not hunting down the best deal every year on your behalf or maybe you think it's down to the consumer to take responsibility for services they purchase...

Somebody somewhere has to put the legwork in and if it's not the consumer then the bean counters will change for the service somehow. Renewal fees, admin charges, cancellation fees... it's not like they've not got form for monetising bollox
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Husqvarna Vitpilen 401, Yamaha XSR700, Honda Rebel, Yamaha DT175, Suzuki SV650 (loan) Fazer 600, Keeway Superlight 125, 50cc turd scooter

[stinkwheel]

[blurredman]

I do this rigmarole 7 times a year. I gots to be on the ball

Will see how it works out in practice when my renewal letters come through.
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CBT: 12/06/10, Theory: 22/09/10, Module 1: 09/11/10, Module 2: 19/01/11
Past: 1991 Honda CG125BR-J, 1992 (1980) Honda XL125S, 1996 Kawasaki GPZ500S.
Current: 1981 Honda CX500B - 91k, 1987 MZ ETZ250 (bored to 295cc) - 38k, 1989 MZ ETZ251 - 49k, 1979 Suzuki TS185ER - 9k, 1973 MZ ES250/2 - 17k.

[Ste]

Meh, I'd always thought that auto-renewal was the price to pay for laziness.

"The FCA says the move will save loyal customers an estimated £4.2bn over 10 years.

But it admitted it could spell the end of the cheapest deals for new customers."

So no more cheap deals for people who shop around and instead everyone has to pay the higher prices?

[Nobby the Bastard]

More a case that people pay a reasonable price for the cover and risk. It's exactly the same.as when they were made to stop altering premiums basted on gender.
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Sprint ST 1050

[Easy-X]

[Robby]

The bit I find most distasteful is that every year my options are to stay with the same company and pay about £200 more, or to hand over a huge chunk of personal data to a comparison site, for them to share it with every insurance company under the sun, for me to then end up with either the same company, or one of the other 3 that I tend to rotate around.

Then wait 3 weeks for the details to filter through the system, and await the new barrange of spam emails, text messages, robo-calls, occasionally actual snail mail.

I always refuse anything to do with sharing my data. I occasionally go as far as setting up alternative contact details just for insurance quotes to be sure it is them being twats.

I just feel sorry for the americans who have to do this for health insurance, and don't even have the fig-leaf of data protection laws.

[Jmoan]

Scrap mandatory insurance or drastically restrict it, cap costs then let the free market decide.

[ThatDippyTwat]

[stinkwheel]

[B5234FT]

Like every other product or service the problem is consumers.

If an overwhelming majority rejected the renewal and switched, companies would have an incentive to value and reward existing clients at renewal. That tells me the majority don't bother and gouging is more profitable.

If the majority of buyers rejected newbuild homes with crap build quality, rooms you cant fit a bed in and garages you cant fit a car in, they'd eventually stop building them.

If no one read the Daily Mail, they'd go bust.

As much as I morally disagree with all of these things, they fundamentally continue to exist because the average consumer is a lazy magpie who wants to keep up with the Jones' whilst having someone else to blame they're not doing any better.

For the rest, it just makes life harder work than it needs to be.

[Jmoan]

[ThatDippyTwat]