Renewing my car insurance, NU Direct posted me a renewal invitation at £434. Out of curiosity, I applied for a quote for the same vehicle details on the NU Direct website and was quoted £399.

I phoned NU Direct and pointed out this variation and assumed that they would offer me the £399 renewal premium without question. Unfortunately not. The operator stuck firm to his £434 quote and when I asked for an explanation was told it was due to "a service charge". The "service" appeared to be him speaking to me on the phone.

So my deduction is that relocating back office functions from Norwich to India saves NU Direct some money but costs their renewing policyholders dearly.

Or not in this case. I declined the operator's quote and took up the internet £399 quotation. Rather bizarre really, and if I wanted it, I could have also had a half price hotel room because I applied through the website.

Jonathan Ling - Finance director
Whitespace Software