grober
MB Master
Insurers must not penalise loyal customers, says FCA
People renewing their home or motor insurance will pay no more than new customers from January.
www.bbc.co.uk
INSURANCE
- Thread starter grober
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I must say that I have been with Aviva for 10 years now, and they don't do that - I.e. at each anniversary, I would have gotten the same deal as a new customer. However, I have this issue with British Gas every year when renewing the boiler cover - the price goes up, I ask to not renew, they transfer me to the cancellation department where they 'agree' to keep the same price as last year.... 
so hopefully this charade will now stop 
so hopefully this charade will now stop slade1
MB Enthusiast
Had same problem with AA years ago. On renewal I would ring them up and tell them online was around 30 percent cheaper, 15/20 seconds later would agree to renew with online price.
This is bad news for people who are not idiots. Anyone with half a brain realised at least 15 years ago that this was the ins. industry business model & accordingly shopped around at renewal, either switching to another company offering a lower premium to attract new bus. or using the lowest price quoted to haggle their renewal premium into line. Lately we did this with my son's ins, staying with the same co. after knocking it down to £293 from a renewal quote of £427. Astonishigly, many people STILL don't seem to realise this is the game ins. companies play, as we can see from the appearance here every single week of a new thread bitching about the outrageous way an insurance company has raised someone's renewal premium.
Now, for the non-idiots the price of insurance renewals will have to rise as ins. co.s are forced to offer every customer, new or old, clueless or savvy, the same price, thus negating the benefit of not being a fool.
Now, for the non-idiots the price of insurance renewals will have to rise as ins. co.s are forced to offer every customer, new or old, clueless or savvy, the same price, thus negating the benefit of not being a fool.
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Nail on head
End of cheap deals overnight. No insurance company is going to offer a low price if they have to stick to it ad infinitum.
OP
OP
grober
MB Master
Unless they want the business over their insurance rivals of course? its competition but of a different kind. Where the deception lies with these cheap deals is that people are blinded by the lowered premium- what they may not realise is the extent of their new cover may have subtley changed --limit of personal damages claim, excess payable in the event of a claim, legal expenses , vehicle recovery etc etc..often they may not bother or be unable to view the full policy info until they have bought it. Most FORTUNATELY will never find they have been sold an insurance deal on the cheap except in the event of a claim in a system that positively encourages a race to the bottom in the extent of everyone's cover?
I'm not saying folks should not shop around---just read the policy small print as well as the premium
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You are not wrong, but you could argue the same about the entire Consumer Rights Act.
Savvi buyers will know how to protect themselves; the Act protects the naive, and at the same time bumps-up prices for everyone - because sellers know that there will be more returns and refunds, and they roll these additional costs to consumers across the board.
It could also lead to price fixing with the major players involved. It’s just a shame the same legislation isn’t applied to phone and broadband providers
