Insurance - Large difference between renewal and new quotes

[Ian Jackson]

I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.

I have lived in this house for nearly 40 years, and have never made any
insurance claims.

Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes
£180.

Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).

So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

[Roger Mills]

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

You'll need to read the small print of the other offers to make sure
that you really can get equivalent cover for a lot less - then challenge
your existing insurer to match the others - or at least to give you
their 'new customer' price.

If they refuse, go elsewhere. You can always come back next year - when
you *will* be a new customer!

It sickens me the way these companies reward DIS-loyalty. They rely on
people's inertia in order to get away with higher and higher prices. The
people who really make money out of insurance are the parasite
'comparison websites' which encourage you to switch and earn a fat
commission when you do. I would rather have the insurance companies
giving a fair deal to existing customers rather than keeping these
parasites in business. Their existence is causing *everybody's* premiums
to be inflated.

[occam]

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.

Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

[Mark]

Post by occam

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.
Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

Very Risky IMHO. You may not be covered for a few days and (IIRC)
many Mortgage companies will really not like this.

[occam]

Post by Mark

Post by occam

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.
Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

Very Risky IMHO. You may not be covered for a few days and (IIRC)
many Mortgage companies will really not like this.

I disagree. If they themselves agree to renew it, the continuity of
coverage is intact. What normally worries insurance companies is if you
have previously been refused insurance. The only (infinitesimal) risk
is if, in the couple of days of missing coverage, you suffer flooding or
an earthquake and fall in the 'gap' of two valid contracts.

[Mark]

Post by occam

Post by Mark

Post by occam

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.
Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

Very Risky IMHO. You may not be covered for a few days and (IIRC)
many Mortgage companies will really not like this.

I disagree. If they themselves agree to renew it, the continuity of
coverage is intact.

What if they don't or you turn them down because it's still too
expensive?

Post by occam
What normally worries insurance companies is if you
have previously been refused insurance. The only (infinitesimal) risk
is if, in the couple of days of missing coverage, you suffer flooding or
an earthquake and fall in the 'gap' of two valid contracts.

Much more likely risks are on the contents part of the insurance such
as burglary.

[Fredxxx]

Post by occam

Post by Mark

Post by occam

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.
Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

Very Risky IMHO. You may not be covered for a few days and (IIRC)
many Mortgage companies will really not like this.

I disagree.

Why?

Post by occam
If they themselves agree to renew it, the continuity of
coverage is intact. What normally worries insurance companies is if you
have previously been refused insurance. The only (infinitesimal) risk
is if, in the couple of days of missing coverage, you suffer flooding or
an earthquake and fall in the 'gap' of two valid contracts.

That sounds like agreement with the previous poster.

What are you disagreeing?

[occam]

Post by Fredxxx

Post by occam

Post by Mark

Post by occam

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

Here's a simple trick I stumbled across accidentally.
Let your policy 'laps' by a couple of days. Do not make the renewal
payment by the deadline stated in the renewal notice. (It happened to me
due to carelessness.) When I eventually contacted my insurers with an
apology and a request to reinstate my existing policy, I was told they
have to re-issue the contract, for reasons best know to them and their
small-print. The 'new' policy was much lower in cost than my last
renewal notice. Their explanation was "It is policy to give a set
discount for 'first time' clients". Just to test the system, I repeated
this two years later, this time deliberately. Same results.

Very Risky IMHO. You may not be covered for a few days and (IIRC)
many Mortgage companies will really not like this.

I disagree.

Why?

Mortgage companies will not even get to know about it. That is why I
disagree.

Post by Fredxxx

Post by occam
If they themselves agree to renew it, the continuity of
coverage is intact. What normally worries insurance companies is if you
have previously been refused insurance. The only (infinitesimal) risk
is if, in the couple of days of missing coverage, you suffer flooding or
an earthquake and fall in the 'gap' of two valid contracts.

That sounds like agreement with the previous poster.
What are you disagreeing?

[Flop]

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

I had a renewal quote - say £350.

I checked with an online quote (like for like) and the same insurer was
offering £300.

So, I rang them up and said that "online I can pay £300. What can you
offer?"

Their response was £275.

I suspect that there is a business model which says 'be ridiculous and
they will contact you. Your customer knows what you are like. Give them
the telephone number because if they don't do something right now, they
may forget and be stung for £350'.

[Flop]

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.

As an addenda I would advise you to stay with one insurer if possible -
especially for home/house insurance.

If you need to claim for eg subsidence, the question may arise about
when the defect started.

Your current insurer can suggest that you claim from your previous insurer.

[I believe that there is some agreement that current insurers must take
responsibility but I do not know how well this is implemented].

[tim...]

Post by Flop

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

I had a renewal quote - say £350.
I checked with an online quote (like for like) and the same insurer was
offering £300.
So, I rang them up and said that "online I can pay £300. What can you
offer?"
Their response was £275.
I suspect that there is a business model which says 'be ridiculous and
they will contact you. Your customer knows what you are like. Give them
the telephone number because if they don't do something right now, they
may forget and be stung for £350'.

didn't work for me

the best that they would offer was "free" emergency home repair cover, which
is actually about 50 quid if you pay for it

So I moved

tim

[Ian Jackson]

Post by tim...

Post by Flop

Post by Ian Jackson
I've just got my annual renewal quotation for my house buildings and
contents insurance. It's £400.
I have lived in this house for nearly 40 years, and have never made any
insurance claims.
Although I appreciate the benefit of swapping insurance companies from
time to time, I rarely actually make the change. However, as £400 does
seem a bit OTT, I've started to get some online quotations - and I'm
surprised at how low they are. It looks like I can get something
adequate for as low as £120 - and with a few belt-and-braces extras,
it's still only typically £150. Even my present insurer only quotes £180.
Of course I realise that many of these new quotations will be
draw-you-in special offers, but even if I choose one in full knowledge
that I might get a bit of a shock on the first renewal, it would have to
be going some to be anything £400 (which will probably more like £440
next year).
So, although I've been with my present insurance company for 10 years,
so I'd like to know whether I should challenge them on the renewal price
(to see if they will come down to their online price), or should I
simply say "Let them stuff it", and move to a different company?

I had a renewal quote - say £350.
I checked with an online quote (like for like) and the same insurer
was offering £300.
So, I rang them up and said that "online I can pay £300. What can you
offer?"
Their response was £275.
I suspect that there is a business model which says 'be ridiculous
and they will contact you. Your customer knows what you are like.
Give them the telephone number because if they don't do something
right now, they may forget and be stung for £350'.

didn't work for me
the best that they would offer was "free" emergency home repair cover,
which is actually about 50 quid if you pay for it
So I moved

Well, in the end, so did I.

The renewal (house buildings and contents) was £402 (Churchill), so I
spent a lot of time on the Meerkat website looking at alternatives. I
could have got something for £103, and the cover looked reasonably
adequate - but eventually I went for one for £140 (Legal & General).
However, I'll be keeping on next year's renewal price.

My car insurance is due next month, and if the past couple of years'
hikes are anything to go by, expect that I'll be asked for something
like £360 (fully comp, Churchill again). I'll probably go for one of the
Meerkat quotes for around £180 (RAC, who I used to be with until about
ten years ago).