Home insurance price hike - why?...

ShilohGreen

Hello,

I have just called my home insurance co - The Co-op - to enquire as to why my Personal Possessions Premium had gone up by almost 40%, despite a substantial rise in my no claims discount. The person I spoke to said it was because there had been an increase in fraudulent claims in my area but he could give me no further details. What frustrates me (as well as the massive increase for reasons that are nothing to do with me) is that I have no access to their calculations and no way of verifying this claim.

Am I bound to face the same problem with other insurance companies?

Quentin

ShilohGreen wrote: »

....Am I bound to face the same problem with other insurance companies?

There's one sure way to find out!

http://www.moneysavingexpert.com/insurance/home-insurance

lisyloo

is that I have no access to their calculations and no way of verifying this claim

We that's no different to meat, milk, veg, petrol etc. or anything else.

But you will have the same problem if they use the same data source.
There may be some insurers that don't use that data source or calculate their premiums differently so I'm afraid it comes down to shopping around.

I know it's frustrating but I don't think any industry completely exposes it's pricing model.

McKneff

I had been with the Coop for years, and been quite happy with them but I had a price hike in June. I went to Rias (Aegis) and it was £70 cheaper £250 down to just £170 for the same cover.

ShilohGreen

Thanks very much, I'll check that out Quentin.

dunstonh

Fraud always increases in a recession. If you happen to live in an area that is more prone to fraud then you will be hit harder. In general, higher risk indviduals and areas have seen significant rises. Whereas lower risk individuals/areas have seen little or no rise.

mikey72

dunstonh wrote: »

Fraud always increases in a recession. If you happen to live in an area that is more prone to fraud then you will be hit harder. In general, higher risk indviduals and areas have seen significant rises. Whereas lower risk individuals/areas have seen little or no rise.

And renewals are a very good way of hiking premiums for customers who don't shop around, and mistakenly trust their present insurer. We'll have to see what offers the op gets from other insurers. If you're right, they should all be high for their postcode. If not, they're being stung for being loyal.

dunstonh

And renewals are a very good way of hiking premiums for customers who don't shop around

Not always. Some will. Some wont.