Why does my insurance company offer cheap insurance to new customers, but keeps my premium high?

I read with interest MH of Camberley's letter re breakdown cover. I have had several identical conversations with a number of organisation covering domestic energy, telephone charges and more recently car insurance. I had my E-Class Mercedes-Benz insured with a very well established breakdown/insurance brokers. I upgraded the car and went onto a comparison site to get an idea of how much more a newer version would cost to insure. To my surprise I saw that my current insurers were offering identical cover for only £30 more. I telephoned my insurers in order to upgrade, but I was told that the current underwriters would not upgrade me as the car was too expensive to insure. When I pointed out that they were prepared to accept me as a new client, they said there was nothing they could do, and furthermore it would cost me £107 to cancel my current policy. I had no option but to pay up, but I consider this to be corporate theft.

Asked on 24 November 2012 by RS, Market Rasen

Answered by Honest John
That's the way it is. If investment bankers can steal our deposits and pension funds and our taxes with no fear of prosecution, then this sort of thing is chickenfeed.
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