home insurance - credit agreement v credit check

dolly74_2

I have just been renenewing my home insurance with Tesco over the phone. I always pay over 12 months rather than all at once. The guy on the phone said he was going to send me a credit agreement. I queried this as I am keen not to have any more credit checks at the moment. He said this wasnt the same and it would not involve a credit check. Is this right?
Also, it seems to have gone up quite alot this year even though i havent made any claims for last 4.5 years. I queried this and the guy told me that this was an industry wide thing and it has all increased substantially. Is he blagging me? It had gone up 40% but i managed to get him down to 20%

dunstonh

He said this wasnt the same and it would not involve a credit check. Is this right?

If you are paying monthly then they are often done under a credit agreement. An agreement doesnt require them to do a credit check although some do.

I queried this and the guy told me that this was an industry wide thing and it has all increased substantially. Is he blagging me?

Cover has gone up a heck of a lot in high risk areas but remained steady or small increases in low risk areas.

It had gone up 40% but i managed to get him down to 20%

That is because their model is based on sales discounts. i.e. higher gross premium to start with but discounts used to make it cheaper. If you dont get the discount then you pay more. Many dislike that method of distribution as it requires you to be active in shopping around and pushing for discounts every year. The other method is little or no sales discount but more consistent premium.