New vs Existing Customers: Introductory Offers…

My car insurance renewal quote came through the post the other day. First thing I did was get insurance quotes from some comparison websites to see if my renewal price was reasonable. As it turned out it was in the same ballpark as the better quotes, so I figured I would accept the renewal. Before I did, I decided to get an online quote from the same company for a new policy. Low an behold, it was a little over £100 cheaper to take out a new policy rather than to renew the existing one.

I phoned customer services and asked what the discrepancy was and I was told it was an offer for new policies only. I promptly cancelled my renewal and took out a new policy with the same company and saved myself over £100.

I understand that companies do this because most customers are apathetic and will accept being ripped off for an easy life, but it stinks. Wouldn’t it be nice if companies valued your custom and gave existing customers their best deals, rather than saving them to entice new people, only to rip them off the new year. Don’t even get me started on the high-street banks…

Cheers

Tim…

 

Author: Tim...

DBA, Developer, Author, Trainer.

6 thoughts on “New vs Existing Customers: Introductory Offers…”

  1. Similar story here. Renewal quote came in so decided to do price comparisons, one of which came in around £160 cheaper.
    Spoke to existing company and told them I would cancel as it was cheaper elsewhere – to which they replied “that’s ok, we’ll reduce your renewal price to match”. Why could they not have just made it cheaper in the first place?

  2. Same goes for mobile phone contracts with a new phone. New customers could get the phone I wanted with a 1 year contract whilst existing customers could only get the same phone while committing for an extension of 2 years to their contract.

    Only when I threatened to leave and go to the competition did they give me the phone I wanted along with the 1 year extension I wanted.

  3. I hope that by cancelling and starting a new policy you didn’t inadvertently miss out on something – e.g. no claim bonuses, waiting periods?

  4. Hi.

    Lisa: Mine couldn’t change the prices, but were happy for me to cancel and re-insure.

    Colin: The phone industry is so bent. It is standard practice for me to complain and drop tarrif now. They suck.

    Jeff: No change in policy or terms. I just get a discount on some elements of the policy because I am a “new” customer. 🙂

    Cheers

    Tim…

  5. Bizarre. Did they terminate your policy and send you out a proof of no claims and then immediately create a new policy ?

    Sounds like complete madness.

  6. Now if it were a big computer company, they would charge you to cancel your old policy, audit your driving, then raise your rates because your new policy has terms they imposed on you without telling you. And be highly rewarded by investors for doing so.

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