Why is insurance cheaper for new customers rather than those renewing?
I am in the process of changing my car. The new one has a lower insurance rating than the previous one. Over the last 10 years I have not paid more than £250 for comprehensive insurance. When seeking to change over the insurance I was not only asked for a fee for doing so (which I expected) but also for over £100 extra for the next ten months. In the end, I decided it was cheaper to pay a cancellation fee and buy a new insurance policy from another insurer. Is this a form of dual pricing? If so is there anyone to complain to?
Asked on 18 July 2019 by Ian Aveyard
Answered by
Tim Kelly
Just because a car has a lower group rating does not mean it is cheaper to insure. When you are on your existing policy, you are tied in and you will have been quoted normally. A new quote will be discounted. In short, you cannot complain to anyone, the FOS and FCA will take no attention as the insurer has done nothing wrong.
Tags:
insurance
insurance premiums
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