Income Insurance premium increased by 87%

davery83

I have had income insurance for over 3 years now, and now they have moved my policy from one insurer to another. In the process my premium has gone from £17 to £32 - are they allowed to do this? They claim its down to the current economic climate and the fact more people are claiming.
This has only taken effect recently, apparently others had their policies moved back in April, but as I was claiming on the policy until recently mine will be moved soon.
I don't get any increased benefit from the new premium.
Any ideas/thoughts would be helpful. I'm happy with the service they (the previous insurers) provided but not sure they can increase it by so much suddenly?

lisyloo

Yes, I think they can charge what they like.

You might not be getting any increased benefit, but their costs of providing the same benefits have gone up a lot as unemployment figures have increased.

Sorry, it's unfortunate and not good for you.
I sympathise but I think that legally they can charge what they want for their product.
They might have to give you soem notice but that's probably all you are entitled to.

davery83

Well, the thing is now I'm on less pay than I was previously because I was made redundant and had to take a lower paid job - the protection still covers me for the previous salary (and will do into the future I believe).
I don't particularly want to leave them and start a new policy elsewhere because I won't get the benefit of the higher salary.
I guess I'll have to get new quotes and weigh up the differences, I just think its wrong they seem to be blaming it on the new company increasing the premium - it wasn't my choice for the policy to be moved over.

dunstonh

are they allowed to do this?

I am going to assume you mean PPI style income protection and not PHI style. The answer in that case is yes and no.

Whilst many PPI providers have decreased premiums in the good years and increased in the bad and have the T&C to allow it, many did not. The PPI industry agreed with the FSA that increases in future would have to follow a defined method and any increases this year reversed until 2010.

They claim its down to the current economic climate and the fact more people are claiming.

Which is partly true. The main reason though is that they were far too cheap to begin with. The cheapest providers are the ones that have increased the most.

cw_2009

If your salary has reduced due to changing your occupation. If might be best to inform the provider that your salary has changed and your occupation has.

If you need to make a claim the insurance company may say they wouldnt of provided insurance if they was aware of your current occupation. (your new occupation could be too high risk)

Also if you made a claim your benefit may be reduced as you are not currenlty earning enough, you would be better off making a claim on your policy than if you was working, so the company may reduce your benefit if you was to claim.

If i was you, it would be best to contact them directly and explain the situation. Given the current situation with unemployment they may beable to make ammendments to your policy & then change it make to your orginal benefit.