Car insurance companies rarely reward customer loyalty

While it may seem the worst kind of customer service, most car insurance companies in the UK are decidedly lax when it comes to rewarding customer loyalty, as these motor car insurance providers wager that motorist apathy will outweigh their desire for less expensive cover.

Car insurance rates can go up for many reasons, with the most common one being that you’ve been involved in a costly car accident and have had to make a claim.  However, some insurers have been raising motor premiums for customers who have not made any claims and whose circumstances have remained the same, resulting in their discount car insurance suddenly becoming much more costly.

Many drivers feel that insurers are deliberately exploiting customer loyalty by increasing their prices year on year.  Car policy holders are sent annual renewal documents, but this documentation usually omits any explanation as to why their premiums have increased – and the higher rate of cover is applied automatically if policy holders do not switch providers or respond to their current insurer.

The insurance industry says that premium prices are calculated purely of the risk insured and the cover provided.  However, more and more cases have begun to emerge where an insurance provider has been challenged on their annual renewal price quotes before being pushed down to a price cut by an incensed motorist, which suggests that there may be more room to manoeuvre than insurance providers are letting on.

In excess of seven million Brits choose to automatically renew their insurance cover with their current provider every year.  Nearly one out of every three of these auto-renewing motorists do not even give competitors’ rates a cursory glance and instead just blindly take whatever is given to them, and these figures grow more pronounced with age as older policy holders are likely to remain with one provider longer than their younger counterparts.

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