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Making sense of AVIVA's home insurance renewal quotes...
ceivegz
Posts: 71 Forumite
I recently got a renewal notice from Aviva for my home insurance -- despite more than 5 years without a claim (other than on my legal and home call out add-ons which don't affect the NCB) my quote went from £350 to £396 -- a massive >10% increase.
I then went to the Aviva site and got a quote based on the exact same level of cover. As I wasn't able to get a new quote for my own address as it was already covered, I had to get a quote on my neighbouring property, which if anything should cost more to insure on the basis that it has an extra bedroom. The result was a quote of £186 (plus £50 cashback from a cashback site if I'd been a new customer)!
The day after my policy expired I phoned to explain that I was very unhappy with the difference. The CS agent explained that policy costs change daily and that there could be a number of factors explaining why my neighbour's property would be cheaper to insure. The CS agent pointed me in the direction of the following site: https://www.aviva.co.uk/your-home-price-explained/ but note of this explains such a big difference. The properties are on the same street, both seemingly with the same level of risk (flood or otherwise) and both around 16 years old so should not have experienced any structural issues.
The CS agent offered me a renewal price of around £280 which was far less than I'd been quoted or paid last year, but still nearly £100 more than the quote I got for my neighbour's property.
Can anyone shed any insight on how insurance companies pluck these numbers from the air? Did I simply get a better price because I'd let my policy expire? Do insurance basically rip-off customers who don't move to subsidise ultra-low prices for new potential customers?
Thanks
I then went to the Aviva site and got a quote based on the exact same level of cover. As I wasn't able to get a new quote for my own address as it was already covered, I had to get a quote on my neighbouring property, which if anything should cost more to insure on the basis that it has an extra bedroom. The result was a quote of £186 (plus £50 cashback from a cashback site if I'd been a new customer)!
The day after my policy expired I phoned to explain that I was very unhappy with the difference. The CS agent explained that policy costs change daily and that there could be a number of factors explaining why my neighbour's property would be cheaper to insure. The CS agent pointed me in the direction of the following site: https://www.aviva.co.uk/your-home-price-explained/ but note of this explains such a big difference. The properties are on the same street, both seemingly with the same level of risk (flood or otherwise) and both around 16 years old so should not have experienced any structural issues.
The CS agent offered me a renewal price of around £280 which was far less than I'd been quoted or paid last year, but still nearly £100 more than the quote I got for my neighbour's property.
Can anyone shed any insight on how insurance companies pluck these numbers from the air? Did I simply get a better price because I'd let my policy expire? Do insurance basically rip-off customers who don't move to subsidise ultra-low prices for new potential customers?
Thanks
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Comments
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Do insurance basically rip-off customers who don't move to subsidise ultra-low prices for new potential customers?
Yes, and if you have only just become aware of this it's clearly worked for them. Never renew without checking whether cover appropriate for your needs is available at a lower price elsewhere - this applies to all types of insurance, and has done for many years now.0 -
Frenky - You seem to be very keen to point that company out...You'll find me sat in the corner with a pack of dry roasted and a Guinness.0
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Frenky.......they search the market for you every year.........really??? Companies house shows they were only incorporated in September 2018 so I'm not sure how they've searched the market for you before this.........0
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