50% increase why?

deankyall

Have just had a renewal from my wifes insurance company NORWICH UNION,it is for my sons 1.2 renault clio,he is 18 and has not had any claim at all,we live in a quiet cul de sac in bournemouth.When we phoned and asked them to explain they said it was because we live in a high risk area,the total jump is nearly £500 more,this is 2 months wages for him as he's a student ,he works part time,theytake into account all claims in the bmth area,i find it absloutely disgusting that at the drop of a hat that a company can try to extract 50% more ,if i tried that in my job i would be up in court.How can this be legal and morally right,also dont they realise there is a recession,i am of course not going to give them my business.They should be investigated,as were the banks and mp's.legalised robbery.

dunstonh

i find it absloutely disgusting that at the drop of a hat that a company can try to extract 50% more

They are not though are they. They are offering their price and an invitation to buy. Its not out of the blue. Its at renewal.

if i tried that in my job i would be up in court

Why?

How can this be legal and morally right

because it is.

also dont they realise there is a recession

Yes. Its one of the reasons why insurance costs go up.

i am of course not going to give them my business

And that is the whole point of renewal and having a choice of where you buy.

They should be investigated,as were the banks and mp's.legalised robbery.

Its not robbery as you are told how much it costs before you choose to buy and no-one is forcing you to buy.

If they dont want to take on the risk any more then the best way to do that is increase the price. That coupled with first year discounting can often mean increases in year two are greater. Plus, if your son has passed his test and/or is the main driver, then the premium is likely to go up as he is a higher risk.

dacouch

I think the answer to your question is in your post, you state its your wife's insurance but your son's car eg your insuring your son's car in your wifes name.

The Insurers get lots of claims from these types of policies and tend to lose money as the premium they receive does not reflect the chances of them paying out a claim which are very high and very expensive for young male drivers. The likely reason for most of the increase is Norwich Union are trying to price themselves out of this market eg try and encourage people who insure cars in their parents name to insure elsewhere.

If your son is the main user and you have not declared this to NU it can be classed as "Fronting" which can mean your claims are not paid (Norwich Union are getting very good at discovering these cases)

zkw29

deankyall wrote: »

They should be investigated,as were the banks and mp's.legalised robbery.

Presumably your investigation will extend to Tesco as well - as I have experienced a similar situation to yours there. I bought some chicken last month for £3 and when I went in to buy some today it was £3.89 - a massive 30% increase! How can they justify that? I bought it last month for £3 so by your logic they must be breaking some law by increasing the price for no obvious reason?

You agreed to a contract for 12 months. At the end of the 12 months they are making you an offer to start a new one. If you like their offer, take them up on it. If you don't like it, don't buy it.