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Auto insurance price hikes to be banned
Posted: Thu Jun 03, 2021 10:57 am
by MorrisJohn
No doubt many of you will have seen that the automatic increases in insurance premiums, if you remain loyal to one company, are to be banned.
Personally I welcome this news, having just got my renewal through with a 50% price increase! (Obviously I won’t accept the quote).
https://www.autoexpress.co.uk/news/105 ... g-outlawed
Re: Auto insurance price hikes to be banned
Posted: Thu Jun 03, 2021 11:15 am
by les
Not until January, so they will probably make hay while the sun shines.
Re: Auto insurance price hikes to be banned
Posted: Thu Jun 03, 2021 11:41 am
by MorrisJohn
les wrote: ↑Thu Jun 03, 2021 11:15 am
Not until January, so they will probably make hay while the sun shines.
Yes, you’re probably right. I just rang up my insurer there and after a few minutes the price was down £70 on the renewal price. Cheaper than last year!
Re: Auto insurance price hikes to be banned
Posted: Thu Jun 03, 2021 12:15 pm
by Myrtles Man
Although it sounds, on the face of it, like an unqualified Good Thing, Moneysavingexpert warns that it's likely to lead to a 'levelling up' of premiums as insurance companies will no longer be able to attract lots of new business via price-comparison websites, sort of 'Heads they win, tails we lose'.
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 6:43 am
by Des911
MorrisJohn wrote: ↑Thu Jun 03, 2021 11:41 am
les wrote: ↑Thu Jun 03, 2021 11:15 am
Not until January, so they will probably make hay while the sun shines.
Yes, you’re probably right. I just rang up my insurer there and after a few minutes the price was down £70 on the renewal price. Cheaper than last year!
£70 cheaper, they'll be paying me for having one soon
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 9:17 am
by MorrisJohn
Des911 wrote: ↑Fri Jun 04, 2021 6:43 am
MorrisJohn wrote: ↑Thu Jun 03, 2021 11:41 am
les wrote: ↑Thu Jun 03, 2021 11:15 am
Not until January, so they will probably make hay while the sun shines.
Yes, you’re probably right. I just rang up my insurer there and after a few minutes the price was down £70 on the renewal price. Cheaper than last year!
£70 cheaper, they'll be paying me for having one soon
haha.
Anyone with Lancaster Insurance should be aware they automatically add on an arrangers fee of £49.50 with renewals. When you consider the average cost of Minor insurance it’s quite a hike. If you call them up to query the price rise the fee is waived. I guess other brokers do the same.
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 9:50 am
by geoberni
MorrisJohn wrote: ↑Fri Jun 04, 2021 9:17 am
Anyone with Lancaster Insurance should be aware they automatically add on an arrangers fee of £49.50 with renewals. When you consider the average cost of Minor insurance it’s quite a hike. If you call them up to query the price rise the fee is waived. I guess other brokers do the same.
That's a good tip.
I used them for my 1st year on Basil, then I dropped them because of their price structure, including the arrangement fee. I wasn't aware it was so easy to have it waived, but equally, I don't see why I should have to challenge them on their pricing, I just moved and "Stuff 'em"...
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 4:12 pm
by les
This arrangement fee, I don’t get it. Maybe I’m missing something, I thought their money came from a percentage from the company they get business for. The ‘arrangement’ is the job, they arrange insurance. Seems they want it both ways. It’s like a builder giving a price for a job, and adding more for using his tools.
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 5:02 pm
by geoberni
les wrote: ↑Fri Jun 04, 2021 4:12 pm
This arrangement fee, I don’t get it. Maybe I’m missing something, I thought their money came from a percentage from the company they get business for. The ‘arrangement’ is the job, they arrange insurance. Seems they want it both ways. It’s like a builder giving a price for a job, and adding more for using his tools.
Yep....
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 6:51 pm
by jagnut66
There used to be a member on here that worked for Footman James, I wonder if he's still a member and reading this??
If not, perhaps it should be brought to his attention, so he can give us the FJ official line.....
Just going to check my remewal paperwork now to see if I have been charged one.
You are right though, these things shouldn't be on there in the first place.
And we shouldn't have to be looking for them and then paying for a phone call to challenge it!
Loyalty should be rewarded with discounts, not penalised with higher premiums!
Best wishes,
Mike.
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 7:04 pm
by les
I think his name was Dave, not that it helps much !
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 7:52 pm
by MorrisJohn
jagnut66 wrote: ↑Fri Jun 04, 2021 6:51 pm
...these things shouldn't be on there in the first place.
And we shouldn't have to be looking for them and then paying for a phone call to challenge it!
Loyalty should be rewarded with discounts, not penalised with higher premiums!
Best wishes,
Mike.
You are totally right Mike. Good luck checking yours.
Re: Auto insurance price hikes to be banned
Posted: Fri Jun 04, 2021 11:03 pm
by Admin
To be honest, I don't think classic insurers are the real villians in this instance. I mean yes, I've no doubt it occurs, but I think 'mainstream' insurance is the big boy in this scam.