Insurance renewal price craziness

A question about : Insurance renewal price craziness

I received my insurance renewal for the next year come through yesterday and it had gone up by around Ј45.

I put myself through the price comparison websites and funnily enough it was around Ј45 cheaper as I got 'free' legal and emergency cover with a new policy through this provider.

This is the cheapest provider again, so I called them up to see if they could just Ј0 out the emergency and legal cover to match the comparison website price and save paying them commission. The girl on the end of the phone was lovely but said she couldn't do it so I had to cancel this policy and then take it out again as a new customer.

I managed to get some extra money back through Top Cashback but its pointless and creates more work for everyone and just doesn't make sense to cancel one policy to take it back out again and for the provider to have to pay commission to an aggregator for he pleasure.

on the plus, I get Ј30 odd back from TCB soon

Best answers:

• Are you sure they will honour the new price? Usually they don't allow you to take out a new customer policy instead of renewing.
  The whole 'free legal' thing is usually a con, they give it away free in the first year so they can charge you in the second year and hope you won't notice.
• Apparently. Thats what she advised me to do to get the lower price. Thats why I think its crazy.
• I change insurance company every year and also get cashback. Just remember to cancel auto-renewal as it can get messy if you forget. With cashback and full no-claims with protected no claims, maximum excess and limited mileage, I'm paying around 130-140 quid on a sports car.
• Does your renewal have an admin charge ?
  That can sometimes be the majority of the difference.
  Certain insurers will spot your new application, and will treat your "new" application as a renewal anyway. To be fair it does take away the nonsence of sending prrof of no claims etc to your existing insurer.
  Expect the price to be honoured and then get stiffed for an admin charge.
  That is certainly the model onecall employ.
• There was no admin charge for a renewal, the price difference is for the 'free' legal cover etc.