Got an email, three months before my renewal date, asking me to renew.

 

I asked, via email, why I should renew three months early.

 

This was the response: "We inform you that,  if you have accident, that is your fault, between now and the date that you are due to renew, the premium price of your renewal policy will change and you have to pay the insurance premium higher. Due to claim at fault counted."

 

This would appear to mean that for the final 3 months of a Roojai Type 1 Car Insurance, I am not actually covered in the same manner as I was for the first 9 months UNLESS I pay up 3 months early?

 

I called and queried it, and the person at Roojai at first confirmed this, then said he would speak to his manager and call me back in 5 minutes - almost an hour ago! 

 

Is this just a poorly thought out way of retaining customers, 

 

 

I think they are telling you that if you have a claim before you renew your rate will go up. 

Actually it makes sense, as you get the no claim discount, JIC.   If you're going to renew with RooJai anyway, why wait.

Maybe it takes them three months to get people to pay?

 

 

AA used to send renewal months early but obviously if you claim prior to start of new policy the premium might change

I think what they are really trying to do is get me to pay early and then if I have an "at fault" accident between now and the actual renewal date, then somehow magically I will not lose my No Claims Discount and the premium will not go up.

Can't think of any other reason....

 

Early renewal notices are commonplace. But being asked to actually renew and pay three months early is a new one on me.

6 minutes ago, WhiteHatPhil said:

I think what they are really trying to do is get me to pay early and then if I have an "at fault" accident between now and the actual renewal date, then somehow magically I will not lose my No Claims Discount and the premium will not go up.

Can't think of any other reason....

 

So what's the problem? They're offering a reward for early renewal.

51 minutes ago, mfd101 said:

So what's the problem? They're offering a reward for early renewal.

Maybe. But they are also penalising for NOT renewing early.  

18 minutes ago, WhiteHatPhil said:

Maybe. But they are also penalising for NOT renewing early.  

 

No... not penalising at all. The info seems simple - as you pointed out earlier.

 

1)  Renew 3 months early with full no claims bonus, and if you make a claim in the next 3 months, your no claims bonus is not impacted (until next years cycle).

 

2) Or, you can renew closer to the renewal date with full no claims bonus (if you haven't made a claim).

 

3) BUT... If you do make a claim within the next three months before you have renewed, your no claims bonus would be impacted and thus your premium impacted.