Why did my Esure premium go up by 73%?

mikey72

*Scarlett wrote: »

As lisyloo says it's probably not related to your individual circumstances and I would have thought that in most cases for home insurance the premium would not increase purely for the fact that you are another year older for a standard cover with no recent claims.

The insurer has possibly had a lot of claims in your area in the last 12 months and has assessed the risk as higher so have imposed a higher premium.

I have recently helped a relative to move their policy as the renewal went up from about £15 per month to £22 with no claims or changes in circumstances. When I rang to lapse the policy they did offer to reduce to to about £17.50 but we had found comparable cover elsewhere at just over £15.

You have obviously done the right thing by shopping around to find a better value policy and it never does any harm to do this each year to make sure you have the best deal.

So another company trying it on with a 47% increase, but still happy to drop to only 16% extra when challenged?
I doubt they'd be making a loss at the extra 16% just to keep you, so imagine what sort of profit they where trying to make at a 46% increase?

dunstonh

My esure renewal came in at just £5 different to last year. However, my wife managed to get 3 points during the year and when notified of that (as esure only need to know at renewal), they wanted another £90 on the annual premium. So, it does suggest that they are cherry picking.

I was able to get an alternative, like for like at virtually the same price as last year elsewhere.

Nara

Not sure why your age would affect buildings/contents insurance??

Saying that i have just swaped to Esure as they were £300 a year cheaper then who i was with:rotfl: but then i havent been very savvy these last few years and am learning the ropes now! maybe they were hoping you wouldn't notice and carry on paying it.

Running_On_Empty

Esure hiked my car insurance by 76% this year. Couldn't give me a reason as nothing had changed. I had passed a milestone birthday but they would not confirm if this was the reason, just said premiums have increased all round.
Soon found another insurer, LV, and got it cheaper than I'd paid Esure 12 months earlier.
I was just wondering if the OP had had a big birthday though I agree this should not affect contents or buildings insurance.

lisyloo

I have recently helped a relative to move their policy as the renewal went up from about £15 per month to £22 with no claims or changes in circumstances. When I rang to lapse the policy they did offer to reduce to to about £17.50 but we had found comparable cover elsewhere at just over £15.

You may already have checked this but just be a bit careful on the quality of cover.
There can be big differences in cover which would not be readily apparent without a closer look. It wouldn't be worth saving £2 IMO for a vastly inferior policy.
Home insurance is pretty complicated IMO because it covers building. contents, accidental damage, valuables, cash, freezer contents, personal possessions etc. So makeing sure the cover is adequate can be a complicated business.
Even if circumstances are simple there can be big variations between policies on the definition of things like valuable and accidental damage cover.

MCIBS

As the original poster on this thread, I thought I'd just come in here and say that I actually turned 64 this year. I wouldn't have thought that would explain such a whopping increase in my premium.

I contacted Esure by email on 19th Nov to ask for an explanation. They have acknowledged receipt and said they'd get back to me in due course. When they do, I'll post their reply on here.

MCIBS

Esure have now replied stating that, as the Company is no longer owned by the Bank I used to work for, I no longer qualify for a Staff discount. (I was unaware, until I started querying their premium for this year, that the Company had been sold.)

In addition, they say:
"We have made some significant changes to our underwriting strategy during the last year, as a business we felt it was prudent to take direct and strong action in the segments where we have seen poor underwriting results and unfortunately this has had a negative impact on your premium."

To me this just says "If you are a retired member of Bank Staff, a loyal Esure customer and have earned 10yrs NCD, we simply don't want you as a customer any more."

dunstonh

To me this just says "If you are a retired member of Bank Staff, a loyal Esure customer and have earned 10yrs NCD, we simply don't want you as a customer any more."

If they are losing money on you then why should they?

MCIBS

After more than ten years without making a claim on my Buildings Insurance I don't understand how you can say they are losing money? Are people like me in the early years of retirement considered such a poor risk now that they're not worth having as customers?

PS My dog is only five years old. Maybe I should take out my next policy is his name?

dunstonh

After more than ten years without making a claim on my Buildings Insurance I don't understand how you can say they are losing money?

Because its not about you. Insurance is about the collective pool and sharing the load. You may not have claimed but people with similar profiles to you have increased their claims.