Whats the point of NO CLAIMS DISCOUNT?

[guythegorilla]

I was quoted around £400 by a GO Compare car insurance site as a new customer to go to the" CO-OPERative Insurance Company."And yet when they found out that i was actually an existing customer claiming 5yrs NCD on a current vehicle they qouted me £605!!Can anyone explain that one to me?? (Mars bar sent to best Answer)

[Old_Geezer]

It is usful but clearly not as good as the discount they use to attract new custom. Such is the way of the commercial world today. They're happier with the cost of attracting new business than retaining that which they already have. Unilateral changes to a more sensible system would result in gradual loss of customer to others, and a failed business, since to reduce premiums for existing customers the premium offered to new ones would have to be higher and less attractive.

[grasscarp]

guy it is a loss leader to get new business. What happened to my daughter is another example in the energy war to get new customers. She was phoned by a leading company. Hello, we are going to tell you how you can pay much less for your energy. She: Oh good. Caller: Who are you with at the moment. She: you. Caller hurriedly got off the line.........

[buildersmate]

This is nothing to do with your level of NCD. This is as OG says - these stupid companies pay more attention to trying to attract new customers with promotional offers than trying to retain existing customers - despite the knowledge that it costs far more to win a new customer than retain an existing one.
When this has happened to me, I have successfully pointed out the internet offer to the company and they have agreed to let me have the rate quoted as if I was a new customer.

[guythegorilla]

@Old_Geezer,Thank you for answering me ! Where can i send the Mars Bar to as having best answer? Can be yr local pub or Church GTGorilla.

[guythegorilla]

Thank you all for taking the time and trouble especially Old _Geezer,grasscarp and buildersmate.

[Old_Geezer]

Thanks, but I think I'll pass, as it'll ruin my diet for the day ;-)

[kloofnek]

I found a similiar thing regards to my home insurance.I have always been with Pru...they are very good when it comes to a claim...would not have any other.
Four years ago I made a claim for a lost passport and a laptop within three year period so my premium went up( because it was within the three years.).
So one day I decided to look online ,Moneysupermarket,and Pru came up with a cheaper price than what I was paying even tho` I entered the claims etc.
So if I had cancelled my present policy and took out a new one,it would have been MUCH cheaper.So decided when it was due for renewal would do just that.
However,when my renewal notice came,the premium had dropped and has continued to do so...so I left it.

It is not fair how they try to entice new customers with "great" deals!

Virgin is another big example,I have been with them forever,have the whole works,yet when I see some offer which I am interested in...it`s "oh that is for new customers only"...totally,totally unfair!!!