If it’s cheaper to become a new member than to renew, fight back, says Miles Brignall
It’s not just the insurance companies that are happy to offer the lowest prices to new customers while making their loyal customers pay substantially more. It’s happening at the AA, too.
Customers of the car breakdown and recovery service, many of whom have been members for 20 years or more – are being charged up to a third more than new customers online. Those prepared to ring up and complain earn discounts.
Jeremy Vanes from Bilston in the West Midlands wrote to us this week saying every year the AA sends his renewal, which includes a big increase over the year before. And every year, it soon backs down when he rings up threatening to leave.
Last year his renewal was set at £144, a big jump over the previous 12 months. When he complained, it was immediately dropped to £115. This year’s request – sent in August – asked for £153, even though he had not requested a call-out all year.
Once again he rang up to complain, and it was dropped to £122. “I perceive there to be a stealth discount system – one that is only allowed when a member complains. It means only those who are confident enough to call up get the discount. Everyone else pays full price,” he says.
Another Money reader complained about the huge discounts offered to new members on the AA’s website – prices that are not available to existing customers.
Yvonne Murphy, from Hornchurch in Essex, who has been a member for 23 years, has just been sent her annual renewal at £153. Her cover includes the “home start” and “relay” services.
However, she was bemused to learn that if she went on to the AA website she would be able to buy the exact same cover for just £99. “It clearly makes no sense to be a loyal customer any more. The difference is ridiculous.”
She says she is now planning to switch to rival AutoAid, which charges new and existing customers the same – £37 a year. It provides almost exactly the same cover as the AA, but you have to pay the recovery man at the callout and then claim back the cost.
The AA issued the following statement: “We have standard prices for all customers, based on their needs, and, at different times, offer discounted introductory prices particularly for those buying online.
“We are very open and transparent about this and, in terms of discounted introductory offers, operate no differently to most other companies. We need to attract new members so we can invest in our first-class service with dedicated, uniformed patrols.”
Of course, there is nothing to stop you actively cancelling your AA membership at the end of the year, letting it lapse by a day, and then rejoining online.
But be aware that the AA uses “continuous payment authority”, which gives it the right to charge your credit card the premium whether you want it to or not.
You have to actively opt out of the payment to ensure that it does not go through.
