Can an insurer increase your premium if they THINK you're going to make a claim?

Munkee2

A brief back story:

I'm on holiday and both my rabbits are boarding in a pet lodge. One of my rabbits started losing lots of weight despite eating well so at my request, the owner of the pet lodge took her to the vet. It turned out she had a severe ulcer on the inside of her cheek due to spurs on her teeth and she needed emergency surgery to sort the teeth out. She was admitted from Friday to the following Monday and is now back at the pet lodge. The bill came to over £300.

I phoned the insurer 10 days ago to ask if my rabbit was covered under her insurance because it was dental work which they don't cover. They said I should be able to make a claim as she is covered for dental treatment due to injury or accident so I briefly discussed her case and said I would make a claim when I return from my holiday later this week. I just checked my bank account and mysteriously, her premium has gone from £11.76 to £13. Just before I came on holiday I had a letter from the insurance company (who I don't know if I'm allowed to name here but their initials are PP!) outlining my monthly premium for the next 12 months, all of which were £11.76. I am 100% certain of this even though I don't have the letter with me.

It seems to me they've put the premium up without prior warning because they think I'm going to make a claim. Can they do this? The reason I say "without prior warning" is because the time-span between my phone call to the insurer and the premium going up and being taken from my bank account was 4 days. I don't think they could have sent (and expected me to have received) a letter in this four days.

Any advice appreciated!

dunstonh

Can an insurer increase your premium if they THINK you're going to make a claim?

Yes as long as it is either at the start of the policy or at a renewal point or as a result of an amendment in terms.

It seems to me they've put the premium up without prior warning because they think I'm going to make a claim. Can they do this?

If the claim occurred before the renewal date, then yes. If it occurred after the renewal date then they would have to wait until the following policy year.

Did you take into account insurance premium tax on the premium?

Munkee2

dunstonh wrote: »

Yes as long as it is either at the start of the policy or at a renewal point or as a result of an amendment in terms.



If the claim occurred before the renewal date, then yes. If it occurred after the renewal date then they would have to wait until the following policy year.

Did you take into account insurance premium tax on the premium?

Thank you very much. I'll check the paperwork again when I get home later this week.