Mortgage Protect to increase policy by £10 / month

poonum

Hi all,

I have a policy with Mortgage Protect to cover accident, sickness, unemployment - have been paying £18 per month. Had a letter yesterday saying due to current economic climate thay are putting policy up to £28 a month! If it was just a few quid I wouldn't be too bothered and would understand, but £10 a month seems excessive!

My question is should I just shop around for another cheaper insurer like I do every year when I renew? Fingers crossed no redundancies at my place yet or any talk of them (just pay freezes so far), so I think a 30, 60, 90 day wait after taking out new policy would be ok.

Dave_Angel

Our policy is with British Insurance - had letter today stating they were joining forces with Alpha Insurance A/S - they are increasing our premiums from £52.65 to £100.35 per month!!

Mezzo21

I also have a policy with British Insurance which I originally took out about 2yrs ago for £15 a month. About 6 months ago it increased to £24 which I thought was a large increase and now to £48 more than 3 times the original policy!

I think it's disgraceful, I was so annoyed that I have been on their website for a quote and interestingly my quote came out as £24 a month not the new price. How can they charge current customers who have consistently paid into a poilcy double that of a new customer. Starting to wonder if its worth it to pay out only £600 a month not even half my pay. I realise they are having to pay out a lot but they are penalising people who have been diligintly paying in for a while.

dunstonh

How can they charge current customers who have consistently paid into a poilcy double that of a new customer

I havent looked but chances are that the underwriting terms are different. The old book would have been underwritten at a different cost to new business and there are probably differences in the policy which impact on the risks taken.

shexe

I have the same problem of my premium suddenly going up to twice the price. I have seen on this website that there are much cheaper options available. However, what are my rights in terms of cancelling the current policy?

I tried to ring them but _ not surprisingly - they say they have a high number of calls and to either email them or ring back again later. To my email I haven't received any reaction whatsoever though!

dunstonh, you probably know what the best thing to do would be?

dunstonh

However, what are my rights in terms of cancelling the current policy?

Its pay as you go so you can cancel whenever you like.

However, you may want to line up an alternative first and verify the qualifying period (some may give no qualifying period if you alreayd have a plan running and take it out on the same sum insured).