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New Customer Rate less than Insurance Renewal Rate
Old 06-11-2020, 11:12 AM   #1
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New Customer Rate less than Insurance Renewal Rate

Year three of our home insurance. Policy went up 23 percent.

I went on my insurer's web site and got a like for like quote as a potential new customer. Same home. Same T's and C's/ There was a a 20 percent difference.

Called the insurer. The CS person told me that new customers and existing customers used a different quoting 'system'. I bet they do.

I told her I wanted to be a new customer instead of a renewal customer (never had a claim). Bottom line...this is what was done. Cancelled my old policy as at the termination date and registered me as a new customer. 20 percent saving just for doing that.

Read about this in a finance column in the UK Daily Mail publication. Our auto insurance is up in October with the same carrier. Guess what we will be doing
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Old 06-11-2020, 12:13 PM   #2
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I did this recently with our auto insurance. Called the existing company that we've had for 2 years. Told them I was getting quotes from other companies that are 25% lower, so I'm thinking about switching, but have some questions about how that potentially affects my multi-policy discounts.

That rep immediately transferred me to someone else who was able to get me the "new customer" rate. They cancelled the old policy, set up a new policy number, and the new premium was within a few dollars of the competing quotes, down 25%.

Like many here, I played this game with the cable company before cutting the cord many years ago. It's no different with insurance. If you say the right things and they know you are serious about leaving, you get transferred to the retention dept where they have the authority to meet the competitor's new-customer price.
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.7% SI: 2 pensions, some rental income, SS later
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Old 06-12-2020, 08:40 AM   #3
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We see this too, where insurance companies low-ball to get you in, then gradually jack up your rates over the years. We've changed companies a few times as a result. One of them reduced our rates via underwriting the first time we complained, but the rates kept inching upwards and they wouldn't lower them again. So we parted ways.

Seems like lots of industries do this. When I managed translations as part of my job, the agency we worked with for years was charging us 20-30% more than other agencies. My management felt a loyalty to this company as there are often advantages to having a long-term relationship with a service provider. But wouldn't you think a provider would give you a price break instead of sticking it to ya, since familiarity would tend to increase efficiency in many cases?
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Old 06-12-2020, 08:43 AM   #4
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Loyalty is rarely rewarded when it comes to insurance. Find a good independent broker that you like to work with, have them bid it for you every year or two. You get the savings and still get to keep the broker you like. Works for us.
Even after doing this process for years, this year we still managed to save another $300-$400.
Our insurance is now what I consider down right cheap.
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