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Insurance

gleneagles
Community Veteran
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Insurance

From January car and house insurance will cost no more to existing customers than deals offered to new customers.

REF: BBC Business news.

All we need now is for the same thing to apply to ALL isp services and stop this farcical system where existing customers subsidise new customers.

We are born into history and history is born into us.
12 REPLIES 12
shutter
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Re: Insurance

Hmm..... a bit ambiguous, methinks....

what it means, possibly, is that New Customers will be charged the same as an existing customer... however.. each house  and insurance rate, will be wildly different...  so there will still be the "air of mystery" about how the premiums are being decided for "new" customers - pro rata to "existing customers"..

e.g.  My house insurance ( hypothetically ) is £200 per year...

You move in ,  or live next door, in the same terrace type house,  and the same company *( by chance of choice)  charge you £250....   How will you know that you have not been ripped off,  (or that , me..an existing customer is being charged more, or less )  and how do you prove it , if you decided to challenge it..

In effect... the rates charged will be no different, due to the extremely high amount of variables, that the Insurance company can put into the equation.

Likewise with car insurance....  so many variables, that the rates will be different for someone who has the same car, same year... but differing motoring experiences/speeding/other charges/claims/age/usage.... etc etc..

 

All that the "legislation" mentioned ( if it is indeed legislation) will do, is to remove the "New Customers Only" from the adverts... 

Kind of "smoke and mirror" effect to make "Existing customers" feel that they are not being ripped off at the expense of new customers.

Minivanman
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Re: Insurance

@gleneagles 

Just caught that on the car radio on the way back from t'shops. 

Interesting indeed and what madness that new customers get a better deal than existing ones which results in us all chasing our tails for a better deal with another provider with all the hassle that goes with it.

Not unlike the 'bird in the hand' proverb which many pay no regards to myself included and much to my annoyance.

@shutter 

More arbitrary than ambiguous I'd say although you do make a good point. Insurance premiums seem to be plucked out of thin air along with the price of goods we buy which although identical, the prices are not. 


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Champnet
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Re: Insurance

They should now look at ISP's charging models.............

Minivanman
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Re: Insurance

And proof (if proof is needed) that those price fixing pirates are indeed out there. 🙂

E2a9UzJWUAg8qDs.jpg 


Don't limit the friends you haven't met with arguments you'll never have.
Mook
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Re: Insurance

I did a variation of that joke a while back.

gleneagles
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Re: Insurance

You can still shop around for insurance and change each year if you wish so any overcharging by a company could soon be identified.

Few companies will want to lose customers so prices are likely to remain similar across the board…but some companies may add extras at no charge to you to attract new customers.

As for knowing if the charge is fair or not that might show up in the companies accounts, ie profits per annum.

Any company needs to make a profit to stay in business, as for knowing if the charge is fair for a specific property that might be more tricky but considering the cost of say severe water, fire or structural damage a whole life time of premiums might not cover that.

We are born into history and history is born into us.
Jonpe
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Re: Insurance

About 20 years ago it was announced that existing mortgage customers would automatically get the rates offered to new customers; I don't think that happened.

i can foresee someone calling an insurance company and being offered a policy at the same price as existing customers, then after hesitating to sign up, being offered free pet insurance or some other sweetener.

Marksfish
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Re: Insurance

Is this in the same way as they are not supposed to discriminate between male and female drivers premiums? They will always find a loophole, usually centred around the "risk" profile somewhere.

Minivanman
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Re: Insurance

@Marksfish 

With questions being asked of female applicants such as "will you be either parking or reversing the car" 😎

 


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Jonpe
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Re: Insurance

@Marksfish, nowadays it should simply be a matter of self-identifying as a woman for the few minutes it takes to get insured.  The clause that requires you to report any material change, or whatever wording they use, can't be used against you later since you are no different, you just view yourself differently.

idonno
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Re: Insurance


@Minivanman wrote: "will you be either parking or reversing the car" 😎

I didn't even think such questions come into it nowadays. Either way and the car goes beep, beep, beep getting faster as I get closer. The question that should be there... "do you turn the noise off?" Definitely! 😀 That'll cost you extra! 😮

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HelloDuck
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Re: Insurance