Why being loyal drives up the cost of breakdown cover

My breakdown renewal was due in August but I never received the renewal price letter. I just saw on my bank statement that the renewal money was taken as usual by Direct Debit but it was 20% dearer than last year whereas earlier years’ increases were about 8%.
Whrn I rang to complain they said they had written to me in July and I was too late to get out of the renewal as the 14 days cooling off period was over. They could not explain why the price was such a huge iincreas other than to say they now charge a penalty of 1.35% for DD by Credit Card. Huh. If I had receied the renewal letter I would have jumped on it in time. As it is I am tied in at a rip-off price and they do not even care that I have declared categorically that I will be leaving them when the year is up.

I have been with the RAC for 25 or more years without ever having claimed. Renewal is due on 29th November. Today I received the renewal quote – an increase of 95.7% – yes I did type that correctly. I was gobsmacked and rang up to ask why before I left them. There was no reason advanced for the increase despite my loyalty and claim free record (“that doesn’t affect the premium” I was told!). The “agent” couldn’t do anything about the price but could offer a 3 month extension. I voted with my feet and got a better deal from my car insurer, LV. So the RAC lose out on my low risk income – serve them right is my thought.

I got my AA renewal yesterday for £204.02 up from the £145 odd that it was last year so I rang them and got my renewal reduced to £153.02. I’ve been with the AA for the last 8 years and I can’t fault the service I’ve had but I did check out the RAC and Green flag for quotes who offered similar packages for £146 & £135 respectively. I used this information in my negotiation and it helped. It does seem daft that they get us to jump through hoops or hope that we won’t notice that we are being shafted with the initial renewal.

My AA renewal has also just come through at £267. The annual brief discussion has reduced it to £178, even though in the last year I did have 3 call outs. 2 were broken belts; the AA no longer keep the plethora of belts needed to be able to repair. The other was a failed vacuum brake pump. So all resulted in transport to our local repairer.

The AA’s subscription for a new subscriber online for my cover was £150 (excluding. I admit, free things they have added for loyalty over the years, but essentially things I would not buy and don’t use) . I go through the same process each year. So like Which?, a spraat to catch a maackerel.

My son renewed his RAC cover and got 25% discount when he rang them up,

Which? is just joining in the same game, aren’t they? Presumably the recipient of the gift subscription will pay 33% more next year if they wish to continue, on what is already, apparently, one of the most expensive consumer association subscriptions in Europe (I haven’t checked this but I seem to remember a respected contributor making this comment).

My AA auto-renewal quote came through at £223.99 including Roadside, Home Start and Relay. After checking pricing as a new customer with other organisations, the best quote was RAC at £128.99 with a £30 Amazon gift card (£98.99 without the gift card). After some gentle haggling with the AA, the price was reduced to £140. After pressing a little more , the customer service agent spoke to his manager and this was then reduced further to £128.99, matching the RAC figure, but as a Silver Member, this includes various benefits and discounts (restaurants, tyres etc), where I might receive more savings than the RAC’s Amazon voucher offer. All in all…£95 (almost 42%) cheaper than the auto-renewal fee and I retained my Silver Membership benefits!

I had a renewal 39.75 per month, gross about £475. On line £205 ! Extra benefits not worth 270.
Called and they gave me it for £215. 55% off!

Hello,

I used to work for RAC. The system available to all renewal agents allowed you to take rescue to roughly £20 and recovery to roughly £40. With a supervisor, prices could fall even lower. Based on my experience, I’d say it is best not to get your cover online, you wouldn’t get the best price. Go through a sales person. I have seen premier rescue as low as £50. People who complained got what they wanted. I have processed elderly people happy to renew prices upwards of £200 with no call outs. There was no statistical reason for price rises.

Happy hunting.

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RAC Breakdown Cover renewal notice now excludes European Cover but premium increase of 42%. So much for loyalty and membership!
Answer: switch to Kwikfit at just over a quarter of the price and in future renew annually after checking the prices.

KwikFit have taken over from The Green Insurance Company so Breakdown cover has gone up from £33 to £45. They have ripped me off with unnecessary/unwanted extras with tyre changes so I think I move on.

I received my renewal notice for car insurance with breakdown insurance attached. The price for breakdown had risen to match that of the “big” providers and was with Green Flag. As it turned out I decided to change my insurer and breakdown cover. There is no bonus for loyalty but a bonus for being vigilant.

At the time of my renewal the AA sent through a letter congratulating me on being upgraded to silver membership. Suspicious, I checked how much they had taken from my account – £215, £100 more than last year. It’s New Year’s Day so they’re not open for me to rage at them, I’ll save it up for the 3rd…

I just got my renewal through from the AA = Gold Cover for me and my husband for £294 having been with them for 7 years – I couldn’t believe it. I went online and got a quote for £169 for the same level of cover and got quotes from other providers which offered similar prices too. I then phoned them and told them how annoyed I was considering that we had been them for 7 years and had only used the service 2 in all those years. The advisor did match the online price but you shouldn’t have to phone up to complain before you get a fair price. I would have gone with StartRescue but they don’t seem to offer a Relay equivalent. So, it pays to be vigilant and I do comparisons for most of my utilities and insurances every year and typically save at least 10% each time.

I have now come to the conclusion that car insurance is just one big con. Been with Direct Line for years and paying over the odds on my premiums. Had a no fault accident back in December and stupidly allowed my own insurance co. to put it right. Big big mistake, should gone with the other parties insurance, as Direct Line took my car and ruined it even more. Still waiting now for it to be put right. It’s been a totally stressful nightmare and Direct Line don’t seem to give a damn!