Staying loyal to a company could mean paying more once they have hooked you in with a special offer.
Companies you currently deal with that supply a product or service may not being giving you the best value for money as an existing customer when the time comes to renew an annual policy.
I broke down last year while travelling to Bournemouth, unfortunately I didn’t have breakdown cover as I had just bought the car. Luckily I had my credit card with me and joined the AA while at the roadside. This understandably cost me a considerable amount more as I needed to use the service immediately.
The AA arrived in less than 20 minutes and I was very impressed with the courtesy and service I received at the roadside. The AA driver towed me over 30 miles home and was a credit to the AA. The price I paid at the time dealt with the immediate problem included 12 months cover should I breakdown again.
The annual renewal came through this week at a cost of £121.50 which would cover me for Roadside and Relay cover for a period of 12 months. As I was impressed with the service and presumed as a valid customer this was a competitive price for repeat business, I was wrong. After checking the AA website I noticed the same cover online as a new customer would be £70.00. This means my offer was £51.50 more expensive as a member.
I spoke with the AA press office to ask why members are paying a lot more than offers to new members, in short I was told new member deals would increase like mine after the first year, it’s up to the member to negotiate cheaper prices with customer services.
If you receive a renewal notice call the 0800 435 980 on the letter and negotiate a lower price. I wonder how many of their 15 million members just automatically renew and think they have received the best price? I know the older generation are not always Internet savvy and would just pay the renewal notice and trust the AA had offered them the best price available.
The AA does offer a great service on the road, their quick to respond and always have well trained patrol drivers. However, there is plenty of price comparison and cash back sites that will save you money if you have no luck negotiating discounts with the AA directly.
