Cityvisitor blog

Why loyalty can cost you money

A couple of stories have emerged of the rising cost of car insurance and utilities over the past few days, and this is something that really irks me.

I find it incredible that these companies can just charge you more for renewing your policy or staying with them.

You would like to think that if you had been loyal to a company, you would be rewarded for that by being offered discounts, or at least the same rate as you were paying before.

But the number of times I’ve looked at my car insurance renewal to find it has gone up for no real reason irritates me.

I’ve then got to go on price comparison sites, tell them what I’ve found, and magically, all of a sudden, I am offered a lower rate that I can pay.

Why not just offer that to customers anyway and reward them for their loyalty?

Perhaps it is just naïve of me, but I can imagine a lot of people simply stick with their current company, which means they are needlessly having to pay more money for their policies without any extra service actually being provided.

Utility companies make plenty of money already so why squeeze more cash out of their customers, some of whom are elderly people?

Of course, inflation means there are always going to be pressures as the cost of oil and everything else constantly increases.

Recent changes to the amount of compensation people in car accidents are entitled to also means that car insurance companies potentially have more money to pay out, so I can understand to an extent why premiums may rise.

Of course, insurance and utility firms are there to make money, so it makes sense that they try to maximise their income streams, and I understand that when costs for these companies rise, they can be passed onto consumers.

I just think it’s a shame that we seem to now live in a world where loyalty doesn’t mean anything anymore.

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