# FCA - Insurers must not penalise loyal customers.



## Cookies (Dec 10, 2008)

Just read this

https://www-bbc-co-uk.cdn.ampprojec...6221906266477&referrer=https://www.google.com

Last year, my insurer increased my premium by 50% at renewal - I obviously moved insurer. This will hopefully be a good result as long as implementation of the recommendations are as clear cut as the announcement suggests.

I was looking at my elderly mum's bills, and noticed that her home insurance was almost £600 (she pays it in one lump, so I never noticed before unfortunately) .

A few very quick calls, and her current insurance company offered better cover for £280!! Genuinely scandalous.

Cooks

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## Vossman (Aug 5, 2010)

How many years has this gone on though? We all know that insurance companies are just pirates. 

I am an old git, full license forever, umpteen years NCB and no claims or convictions. I always have insurance with the bells and whistles, last year was £185 ish, this year with the same company comes in at £365 with the note ... we recommend renewal :lol::lol: 

So I have done the usual shop around and I can get insurance for around the £200 quid mark, one even quoted me £770 but only if I have a black box :doublesho 

It's not just insurance companies though, Sky, Virgin, BT and the list is endless. 

As long as there is free market it will happen. 

Many many older people just auto renew, the insurance companies know this and just take advantage. 

Lets hope things change but I have serious doubts that any benefit will be on the side of the consumer.


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## Kerr (Mar 27, 2012)

It is bad most try the same stunt every year and hope you don't shop around. 

Renewals now have to state how much the premium was last year. That's a good reminder and a clear indication of the rip off. 

My insurance company have been ok the last couple of times.


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## Andy from Sandy (May 6, 2011)

The article goes on that premiums will probably go up for everyone to counter not ripping off the loyal customers.

I ask any insurance companies to remove my card details to stop auto renew. Admiral refused my business on those grounds.


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## Caledoniandream (Oct 9, 2009)

My insurance company has been good this year, they could have been better if they gave me some money back for last year ( one of the cars did only 700 mile), but that would be to good to be true.


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## petemattw (Nov 3, 2008)

This just means everyone ends up paying higher prices as if they cannot make profit in years after year 1 when they price low to win you, they will have to increase prices for year 1 to make profit straight away. This is not a good thing and every companies prices will move at the same point so.....


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## GleemSpray (Jan 26, 2014)

My house insurance renewal has just arrived this morning.

New insurer, 50‰ increase and about 3 pages of itemised "changes" from last insurer.

"this is no longer covered", "this is excluded", "the level of cover for this is now"

I know, as others have said above, that when I phone them, I will probably be able to get it down to similar premium to last year.

As said, they rely on people just renewing without reading it.


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## AnthonyUK (Jul 25, 2018)

There have been a lot of regulatory fines recently for Bank's based on the requirements that they must treat their customers fairly.
Good to see this is having an effect on other regulated businesses too.


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## Andy from Sandy (May 6, 2011)

It is not a good thing that prices will rise but for those on the receiving end who are not tech savvy to do the kind of searching and researching that most of us do when purchasing anything those rises will hopefully be a lot less than they get ripped off each year for being a so called loyal customer.


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## The happy goat (Jun 26, 2019)

Andy from Sandy said:


> The article goes on that premiums will probably go up for everyone to counter not ripping off the loyal customers.
> 
> I ask any insurance companies to remove my card details to stop auto renew. Admiral refused my business on those grounds.


I always give them a card that's due to run out before the year is up so i don't have this problem


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## Kerr (Mar 27, 2012)

The happy goat said:


> I always give them a card that's due to run out before the year is up so i don't have this problem


Doesn't it harm your credit rating when payments are declined?


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## andy665 (Nov 1, 2005)

Most insurers give you the chance to opt in or out of auto renewal - I never opt in

Will always wait to see what the renewal offer is - if its similar to previous year then I usually renew, if its a lot higher then I shop around and NEVER give the current provider the chance to price match etc, if they can't give me their best price upfront then I'm not giving them a second chance.

I always look to renew, take out a policy 21-23 days before inception, on price comparison sites that gives the lowest prices, the closer you get to the due date the more the prices increase, lots of independent research backs the theory up completely


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