Insurance Loyalty penalties ban.

[Dustydog]

The City Watchdog has warned that staying with your current Insurer should not cost more than a new Insured Who changes every year. According to the FSA all Insurers will now have to offer their current customers the same rates as a new incomer. Where does that leave the Compare lot? It also why for years when pressed my current Insurer have always reduced or maintained the same premium!
This latest FSA edict will be interesting to follow. Any one experienced anything yet?

 

[ProfJohnL]

But thank goodness for that I have for ages bemoaned the failure of most insurers to value return custom.

It doesn't change the fact that different insurers still do have different rates so the comparison sites can still offer options.

I suspect the same will apply to other repeat options like energy and telecoms.

 

[Dustydog]

Yes Prof. I read it that your current Insurer MUST offer you the same discounted rate at renewal as they do to new comer today. Seems loyal customers have been subsidising new people with approx 20 % hike in their rate. For this assume the risks are identical but I assume we all get the drift😉😉

 

[JezzerB]

Am assuming us savvy swappers will lose out. Hey ho.

 

[otherclive]

I’ve been with LV+ for years even since they were Frizzels. I changed when our Saab 9000 was written off and the problems we had getting a settlement from our insurer made us look around. I check LV+ at renewal time but have found them still good value and I’ve never been subjected to price hikes that a phone call gets reduced. When our daughter was insured for the Subaru the premium reduced slightly. Bizarre world insurance.

 

[Dustydog]

Am assuming us savvy swappers will lose out. Hey ho.

Probably. But your current Insurer has to offer you renewal terms as if you were a new customer. Ever wondered why when you phoned them they came back with a lower figure 😁

 

[Raywood]

You may still want to use the comparison sites as even though they can no longer give discounts to new customers or penalise current ones the rates for cars, at least, do change over the year so what was a good deal last year, might not be this one. It really only means you can check that you are getting the right figure for that company by putting in the information again, and seeing if you get the same answer.
House insurance is normally based on a simple multiplier of the sum insured and a loading for the area, so unless the insurer changes the multiplier for the area you should only get an increase in line with inflation. Possibly no comparison site will be needed there once you have settled on a company, although a check from time to time might be worthwhile.

 

[Dustydog]

I wonder if there will be any more changes following this announcement:-

RSA has confirmed that its deal with Canadian insurer Intact Financial Group and Danish insurer Tryg will complete by the end of May, as it has now received the required regulatory approvals.

 

[Raywood]

The business will continue here as before for the moment, but longer term the operation of the company may change with the new owners own policies being introduced.

 

[Robert_374373903]

Last week we got our van insurance quotation for this year and found it had gone up to double. On enquiry they said the accident we had two year ago when a car went into back of our van whilst we were parked, the owner paid up . Then same time but year later our corner fence post moved in the way whilst we were moving off , Our fault,

 

[Raywood]

I would look around for quotes, but two claims in two years will put off many companies. You will probably have to ring the firms as your record would not get you an internet quote. The second one looks like the old motor insurance claim " I drove in to the wrong drive and hit the tree I did not have". I do have sympathy as I did something similar a few years back.