Are insurance firms treating loyal customers as cash cows?

CONGRATULATIONS to Money Mail for exposing how poorly insurance companies treat their loyal customers. The renewal premium for my contents insurance was double what I paid last year, and my mother’s was the same. We had been with the same insurance companies for many years, which claim to treat customers fairly, and neither of us had made a claim. Fortunately, I went online and found a better deal. However, a lot of older and vulnerable customers can’t do this. They are getting ripped-off and are being discriminated against. Why can’t insurance companies offer a loyalty bonus?

LYNNE LEA, York. I RECEIVED my house insurance renewal quote from Lloyds Bank for £553.64. After reading Money Mail, I contacted the AA and, within a few minutes, was offered a quote of £174.78, saving me nearly £400.

CAROL KELLY, Birmingham.

I SYMPATHISE with those who discover they have been overcharged for their insurance, but most people can shop around for lower prices. Spare a thought for those who, like me, are trapped for life with one insurance company. I live in a cottage next to a brook. The last time it flooded to a significant extent, causing damage to surrounding properties, was in the early Sixties. Since then, engineering work has minimised this risk. When my insurance premiums began to balloon ten years ago, I tried to shop around for cheaper cover, but no provider would touch me because of the perceived flood risk. I am doomed to stay with my original insurer. To add insult to injury, the excess has been hiked. It seems insurers will do anything they can to maximise their income to the detriment of customers. It’s time for a root-and-branch review of insurance practices.

DAVID SCRuTTON, Frome, Somerset. I’VE just gone through the annual ritual of the insurance company putting up my premium, me threatening to go elsewhere and the firm reducing its charge to something acceptable.

MIKE FEILDEN, Bristol.

INSURANCE and utility companies aren’t the only ones ripping off loyal customers. I have been an AA customer for ten years and have never called it out, yet it has increased my renewal premium for roadside assistance by nearly £40, making it almost £200. It did the same last year, and when I phoned to cancel, it gave me a substantial discount. I really don’t want the hassle of changing, but this price hike has gone too far. I shall call the RAC and Green Flag to see what quotes I can get.