Car Insurance Loyalty Discounts (NOT)

The reply to that question depends on your priority. Do you want to get the best price or something else? It looks to me that for it is the latter.

As I mentioned above, insurers with a large NCB will work out very expensive for people who have a lot of claims. Insurers that do not offer an NCB will instead put greater weight on a factor like age or years of license to compensate for this. This is why even without a ‘discount’ these insurers come out at a similar or cheaper price. This doesn’t mean the RACQ discount is fake, just that they show that discount in the form of an NCB rather than calculating on demographics alone.

The simple way to test this is do a quote online (if they offer online quotes) and say you have only just got your license.

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No thanks. I am quite happy with how I am interpreting RACQ Ins treatment of their loyal customers. It is very clear what they are doing.

You are missing the point. I am only giving details of my case. Forget about what could be the situation of other customers. I will say it again RACQ Ins mislead me ( a gold50 member) into thinking that I was getting several discounts totaling $1709. I received their quote of $718 and several other similar quotes from major Insurance companies ranging from $650 to $718. This showed me that I had not received any discount at all. I did not accept RACQ Ins quote. Those are the simple facts. RACQ Ins lost a customer and I thought I would warn other customers.

You are wrong again. I don’t want anything from RACQ Ins - my car is now insured with a different company.

Recently after years of customer loyalty I received a car insurance renewal reminder which had increased by close to $170 including a loyalty ie safe driver discount of $36. Shocked, I went online and from the same company the exact same policy for a new customer was a saving of about $180 plus a bonus online discount of $50. I took them to task and one of their operatives even admitted that some customers renew their policy online every year to get the large discounts. They eventually agreed to a one-off discount which was not as good as the quote for my ‘new’ policy so in principal I went with the competition and face the same process in 12 months. It seems that insurance companies are slugging loyal long-term customers so that they can offer attractively large discounts to new customers.
So much for customer loyalty!

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Hi @petejr, we have found the same thing
see my earlier post:

You may be able to renew a policy online with the same insurer by doing so as a new insurance policy to get a better deal. It takes more time than a simple renewal, but worth the effort.

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Or just tell them you want the new policy deal or you will walk.

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I think the point is, that this applies to all existing customers as they are effectively subsidising new customers as a matter of policy. The only solution seems to be forget about loyalty bonuses and renew your policy online every year as the discounts will far outweigh the bonuses.

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Yes. Welcome to the lazy tax. It seems that some people never work this out as all the vendors do it.

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Fully agree, but some may be time poor and chose to renew without checking because they don’t have the time to do so. This is why as @syncretic has indicated, it is called the lazy tax.

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