Woolworths Insurance Con - Renewal Quote Is More than The Exact Quote Obtained over Website

Lsr6974 on 07/11/2018 - 21:03

I has purchased Woolworths Home and Contents insurance last year, and this month it was due for renewal. I got a renewal quote last month which I noticed was 250$ extra to what I paid last year. Just out of curiosity I redid the quote on the website using the exact same figures as given in the renewal letter and I noticed that the quote as 230$ less than the renewal quote. This means conning existing customers and given them a raw deal or gaining new customers. When I called them they said that they will put me through specialist team to answer my query, and I was on hold for 30 minutes. When I asked the CSR is there a possibility of the specialist giving me call back since I don't want to be on hold they mentioned that they don't have the facility. What kind of a business are they running. They are not doing me a favour by giving insurance. Why should I invest my time? Insurance is a commodity now a days which I can purchase from any one and they are not even interested in keeping their existing customers. Who ever runs this shop needs to be fired. I duly cancelled my policy and switched to another insurance provider. So please beware, never trust renewal policy to provide you the right price, it helps to do a check.

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Comments

  • altomic on 07/11/2018 - 21:15
    +10

    Have you not read any of the many previous threads about insurance companies attempting
    to rip people off on renewals?!

    • luffyex2010 on 07/11/2018 - 23:34
      +1

      even when the insured is dead lol

    • original15 on 08/11/2018 - 09:02

      Agree^

  • ronnknee on 07/11/2018 - 21:15
    +2

    Welcome to OzBargain.

  • Richardc on 07/11/2018 - 21:35
    +9

    We call this lazy tax.

    • vinni9284 on 07/11/2018 - 21:43
      +1

      It's called loyalty tax :P

  • zonra on 07/11/2018 - 21:43
    +4

    Con is a strong word.
    You’re free to go with whichever company you like, just as they’re free to utilise whatever pricing system they like.
    Willing buyer willing seller and all.

  • RED27APPLE on 07/11/2018 - 22:24
    +2

    Standard insurance practice

  • Choc0 on 07/11/2018 - 22:53

    Aami do this too. Your best bet is to get on the merry go round. They'll incentivise you if you're not a customer. No claim bonus/discount is all bollocks

  • John Kimble on 07/11/2018 - 22:54
    +3

    Water is wet!

  • luffyex2010 on 07/11/2018 - 23:33

    I believe Comminsure is 10% on their website quotes to attract new customer/against comp.

    But you do get bonus discount if you have multiple accounts with them (commsec, cba cc, cba business, cba home/content and car insurance and etc)

    Guess there is always a pyramid tier system wherever you go.

  • onetwothreefour on 08/11/2018 - 06:02
    +1

    Yep I had the same thing, I called them and asked why and they said it was an online price, I asked if they would match it but they wouldn't so I just bought it through their website then moved on with my life.

    • poboy on 08/11/2018 - 09:05

      Agree. I just let the renewal lapse and sign up to a new policy.

  • whooah1979 on 08/11/2018 - 06:13
    +1

    Insurance is a commodity

    Insurance is a service. One shouldn’t be confused and think that it’s a commodity good like sugar or pork belly.

    It’s always good practice to get a few quotes before signing a new contract. The existing policy may not have the options one need or be the cheapest.

  • websterp on 08/11/2018 - 07:02
    +3

    This is why you change your insurer every year.

    • singlemalt72 on 08/11/2018 - 07:28

      Funnily enough, I stuck with Youi for 5 years and did the annual phone back to complain about their price rises which would almost always result in a stupid increase being reduced to approx CPI, then this year I suddenly got a $170 cut in my premium …. Totally unexpected.

  • Donaldhump on 08/11/2018 - 09:03
    +1

    That’s business

  • sr6974 on 08/11/2018 - 09:14

    Thanks for all the valid comments. I agree its a business and they are free to find ways to maximise their profits and as such as customer I am free to move around. No party is beholden to any party. And this is the point, if I am running a business I would be more inclined to keep my existing customers. Acquiring new customers costs money compared to keeping existing customers. Yes they tried to sneak in a increase, but when contacted their call center they should have atleast processes in place to address the issue. Knowing that I could as well go to website and get the exact same insurance for 250$ less and their CSR's playing dumb about it is not a great idea. Expecting me to be on hold more than 30 minutes so that they get to keep a customer is stupidity. Do you think this experience will make me a promoter of their brand. I am actually thankful for the experience since I have moved to a different brand for lesser premium than my original one because of this experience.

  • HighAndDry on 08/11/2018 - 09:39

    This means conning existing customers and given them a raw deal or gaining new customers.

    Lol. This is not just common, but I'm pretty sure mandated in all the insurance companies' policies. Thankfully, usually if you call back and threaten to cancel if they don't bring it down, they'll cave immediately.

  • CLoSeR on 08/11/2018 - 09:57

    This is not limited to Woolworths Insurance, they are all the same in regards to renewals.

  • Seraphin7 on 08/11/2018 - 11:34

    Just wait until you attempt to renew a contract with a telco.

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