Insurance/breakdown providers are strange

[jdp1962]

Today, I received my breakdown cover renewal; it was £72, up from £47 last year. I went online and applied as a new customer for the same cover with the same provider, and the quote came back at £54. Before accepting it, I rang my provider, told them I wouldn't be renewing and asked that auto renewal be switched off. He asked me if that was because I'd received a better quote; I said "yes". He asked who the provider was; I said "you". He asked if I'd like him to try and match the new price for renewal; slightly bemused, I said "yes, why not?".
A minute or so later, he told me he couldn't match his own firm's quote, so I confirmed the instruction to switch off auto renewal, and accepted the new quote online.

There are times when I really don't understand the world I inhabit.

 

[ChrisKnottIns]

Today, I received my breakdown cover renewal; it was £72, up from £47 last year. I went online and applied as a new customer for the same cover with the same provider, and the quote came back at £54. Before accepting it, I rang my provider, told them I wouldn't be renewing and asked that auto renewal be switched off. He asked me if that was because I'd received a better quote; I said "yes". He asked who the provider was; I said "you". He asked if I'd like him to try and match the new price for renewal; slightly bemused, I said "yes, why not?".
A minute or so later, he told me he couldn't match his own firm's quote, so I confirmed the instruction to switch off auto renewal, and accepted the new quote online.

There are times when I really don't understand the world I inhabit.

Hi,

That must have been extremely frustrating!

The rules regarding pricing changed in 2022 and these state that your renewal premium should not be more than the equivalent new business price. That extends to breakdown policies where these are sold alongside a car insurance policy (same renewal date etc.). However, it appears, that where breakdown cover is taken out separately, the price is not subject to these same pricing rules. That may explain why your breakdown provider has renewal rates that are higher than new business rates.

Our position is different on this. All of our pricing is carried out in the spirit of these rules and we keep breakdown premiums the same for new business and renewals regardless of whether they are sold standalone or alongside a car insurance policy.

None of this helps you in your situation but we hope our comments bring some explanation and an example of how fair pricing ought to be implemented.

Regards

Simon

 

[jdp1962]

Hi,

That must have been extremely frustrating!

The rules regarding pricing changed in 2022 and these state that your renewal premium should not be more than the equivalent new business price. That extends to breakdown policies where these are sold alongside a car insurance policy (same renewal date etc.). However, it appears, that where breakdown cover is taken out separately, the price is not subject to these same pricing rules. That may explain why your breakdown provider has renewal rates that are higher than new business rates.

Our position is different on this. All of our pricing is carried out in the spirit of these rules and we keep breakdown premiums the same for new business and renewals regardless of whether they are sold standalone or alongside a car insurance policy.

None of this helps you in your situation but we hope our comments bring some explanation and an example of how fair pricing ought to be implemented.

Regards

Simon

Thanks, Simon.