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Byron

Inertia Selling

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Just had the house insurance renewal notice from Saga.

Yet again they have bumped it up by £50, relying on me being too bothered to try other firms.

How prevalent is this practice?

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Just had the house insurance renewal notice from Saga.

Yet again they have bumped it up by £50, relying on me being too bothered to try other firms.

How prevalent is this practice?

I think it's pretty standard marketing in many areas. You hook your prey with (be)low cost bait, and then ratchet up the price boiling frog style, relying on inertia to keep them from jumping ship.

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Just had the house insurance renewal notice from Saga.

Yet again they have bumped it up by £50, relying on me being too bothered to try other firms.

How prevalent is this practice?

Very prevalent.....I wouldn't necessarily knock it, it is the ones that can't be bothered to shop around, those with a loyalty to a company (although no company seem to be loyal to their customers any longer) can't be bothered, can afford it, or are apathetic that are subsidising those that do try to find a better deal, a better deal is not always a better price but it helps.....can always try to find a better deal like for like and present them with it...see then if they value your custom, if not walk...... ;)

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I read a consumer champion type column recently and the entity being named and shamed for inertia cranking of premiums was a leading charity which also sells insurance.

Insurance must be one of the few areas where enduring relationships with customers are actively discouraged in the business models.

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Is it an increasingly failing model? I can understand it happening when phoning around for insurance quotes was a hassle but they're pretty simple to get now.

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If you've another half just swap to them if you want to use the same company.

Done this for about 8 years now.

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SAGA seem to be one of the least competitive companies I have come across. It will be interesting to see how their share issue goes.

The two insurance policies that I have with them are good value for money. Not the cheapest, but good value. For example, their car insurance includes unlimited European cover, not the usual three months.

I shan't be buying their shares though.

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The AA try it on every year with breakdown cover, which automatically debits your account unless you call them up and negotiate/cancel. This year they put the premium up by £50 (40%) in return for 'Silver member' cards and 'free' cover for 17 year old drivers in the household (shame but my 2 year old hasn't passed her test yet)

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SAGA seem to be one of the least competitive companies I have come across. It will be interesting to see how their share issue goes.

I realy think that Saga assume that enough of their target age group are senile in the sense that they have lost their marble rather tha older than average. How else would they ope the sell anything at the sort of prices that they quote?

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Recently had mine from Legal and General.....it was £95..... house (£250,000 rebuilding cost) and contents and that has risen to £113. Still seems ridiculously low, about what I was paying thirty years ago to boot when I first owned a house.

I'm guessing they will want to get it up gradually to something that is sensible...at which point I will be back on the meerkats to find a new provider. But for £18 I can't be bothered.

Edit. Got my professional indemnity renewal today re. my self employment covering me for up to £500,000 claims from Morethan...actually gone down to £220 from £350 last year.

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