British Gas customers outraged after being charged up to three times more than new customers for boiler breakdown insurance
BRITISH Gas customers are furious at being charged up to three times more for boiler insurance than new customers.
The energy company has sent out renewal letters to some customers asking them to pay up to £841 for a year of annual cover.
Prices listed on the website for new customers start from just £234 a year with an additional £50 gift card.
Customer James Purling took to Twitter to complain about the charges.
He tweeted: "Just had notification from British Gas Homecare that our premium will increase by over 17% at renewal. Have I missed something to justify this or is it simply to bolster Centrica profits? So much for being a loyal customer these past 10 years.
"Renewal for British Gas Homecare is £841 an increase of 17% YOY. Same cover as a new customer would be £366. New utilities couldn’t care less about customer loyalty but that’s outrageous.
"Been with you for 10 years. That you’ll charge new customers £500 less plus £50 gift card stinks! Looking at alternatives giving similar cover & even taking into account the age of our boiler are still £500 less than what you want to charge us. Feeling very ripped off."
Michelle Murat also tweeted about her increased cost of cover.
She said: "Why are you charging me to renew my Homecare product with you £318 more than a new customer. Disgraceful. I am trying to talk to someone but have been waiting on the phone for 15 minutes."
However, when she managed to speak to the company, she negotiated the cost of her renewal down.
She said: "I was quoted £508.11 on British Gas renewal for a Homecare product. I asked them why their website quoted £246 plus £50 M&S card for new customers. I have been a customer for almost 2 decades. They reduced it to £360.00. Cheaper than what I paid last yr. Result."
A British Gas spokesperson said: “In line with standard practice across the services insurance market our introductory prices for new customers are non-risk based.
"The initial offer valid for the first-year provides customers with the opportunity to try the product at a reduced price while British Gas can evaluate the risk of cover for the individual.
";At renewal, the prices are determined by the level of risk. This takes into account a number of factors to ensure that all customers are paying a fair price .”
Alex Neill, Which? Managing Director of Home Products and Services, said: "Boiler cover customers with a range of suppliers will be appalled to discover that their reward for loyalty can often be paying a higher price than new customers. Suppliers should fight hard for your loyalty, not take it for granted.
"Which? recently found customers could also save more than £100 on their boiler cover by following our tips. Consumers should consider switching to a better deal and may also find they get improved value by paying for an annual service and putting money aside for repairs, instead of buying boiler cover."
How to make sure you aren't overpaying for boiler cover
MAKING sure you're covered in case your boiler breaks down can cost hundreds of pounds.
That's why it's important to check that you're not overpaying.
It might be cheaper to put money into a savings account and then pay for your own engineer when something goes wrong.
But if you're worried about a big bill, it could pay to get insurance.
MoneySupermarket.com allows you to the different insurance options available.
Basic cover for boiler repairs starts from £4.90 a month.
Before you buy - check if if you have access to an emergency helpline and whether there are extra charges that you'll have to pay if you need an engineer.
Check the terms and conditions carefully. Some policies provide unlimited call outs with a fixed call-out fee, while others limit the number you can make or the amount you can claim.
More comprehensive services will be even more costly, but usually include an annual service and may also cover your electrics, plumbing and heating.
Most policies won’t pay out if you make a claim in the first couple of weeks so check the small print carefully.
Compare as many products as possible to make sure you get the right one for you.
When it comes to renewal, shop around again as you will probably be able to get a much better deal.
It's also worth negotiating with your preferred provider - you might be able to get a discount.
British Gas' website says that all of its insurance products include unlimited call outs and a 24 hour helpline.
Despite this, and the increasing cost of cover, the Sun found over 20 tweets in the past week alone from British Gas customers complaining about being left without heat and long waiting times to get boiler repairs.
The longest delay we could find was a customer left without hot water or heating for nine days.
There were also lots of families with small children who were struggling to get their heating repaired.
British Gas have one of the more expensive boiler repair insurance products on the market.
The range of HomeCare products starts with basic boiler cover for £132 a year.
EDF Energy offer basic boiler insurance starting from £4.90 a month (£58.80 a year), which is less than half the cost. SSE's boiler breakdown cover starts from £49.40 a year, and 24/7 Home Rescue costs £69 annually.
British Gas' most comprehensive option is its HomeCare Four, which promises repairs to gas central heating systems including boilers, control radiators and hot water cylinders, annual boiler services and repairs to plumbing, electrics and wiring.
This is currently being advertised at £234 for the first year (although prices can go up substantially after that).
24/7 Home Rescue have a comparable Complete Cover policy that costs £203.88. Homeserve's closest offering is £204.
There are lots of different options available, so customers need to check terms and conditions carefully to make sure they get the best policy.
Some include everything from wiring to roofs while others will only cover the boiler itself.
SPONSORED: How to switch suppliers and save £100s
SWITCHING suppliers is the best way you can cut your energy bills. Here's what you need to do.
1. Switch and save up to £300 - Use a comparison site like MoneySuperMarket.com or EnergyHelpline.com to find the best deals.
2. Get cashback - Before you move onto a new deal check whether you can get cashback via a website like TopCashback or Quidco.
3. Sign up to , get £5 cashback and never worry about switching again - New free-to-use automatic energy switching service moves you on to the cheapest energy deal. It then searches for better ones once you're signed up and moves you onto them automatically. £5 cashback is paid into your bank account within 4 months of completing the switch. Pre-paid meter customers will receive a £5 Amazon voucher. Promotion ends 31/12/18. Open to those aged 18 and over. UK residents only. Click here for full T&Cs. News UK has a brand partnership with Switchcraft.
MORE ON MONEY STORIES
Insurance firms are facing a watchdog investigation over fears they rip off millions of their most loyal customers by an average of £350 a year.
How often you need to get your boiler serviced and who to call when there’s a problem.
How much should it cost to repair a boiler? And do you qualify for a FREE one.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.