Insurance Quandary

konn1ch1ha

Hi all,

My insurance premium renewal has increased by over 50%. NCD of eight years, no convictions etc. I’m looking to shop elsewhere as we’re moving at the end of the month and my renewal is due on Sunday. The dilemma is, is it possible to renew in London (where I am now), which is currently more expensive compared to where I will be moving to and get a pro-rata discount/refund if I switch? (Eg. Pay £800 for renewal, move to new place, it’s £500, will I get a refund minus adjustment fees?).

Additionally, is it possibly the cost of living and inflation is affecting insurance prices?

Ebe_Scrooge

It might depend on which company you're with.  But in my experience, if you notify a change of circumstance mid-policy which affects your premium then yes, you'll get a refund (or conversely have to pay extra if your premium increases).

In terms of the increase - lots of things affect the premium.  General inflation is certainly one aspect.  It may also be that your "risk group" has increased due to any number of factors - more claims from your postcode, more claims from others that drive the same car as you, whatever.  Insurance pricing is a complicated business and has dozens and dozens of factors that affect your perceived risk.

Belenus

Have you contacted a broker?

They may be able to arrange insurance based on the new address with an extra premium to cover four weeks at the London address. You can't be the first person in a similar situation so maybe there is a precedent.

Or maybe it is simpler and more straightforward to insure at your current address and change address when the time comes.

Sandtree

konn1ch1ha said:

Hi all,

My insurance premium renewal has increased by over 50%. NCD of eight years, no convictions etc. I’m looking to shop elsewhere as we’re moving at the end of the month and my renewal is due on Sunday. The dilemma is, is it possible to renew in London (where I am now), which is currently more expensive compared to where I will be moving to and get a pro-rata discount/refund if I switch? (Eg. Pay £800 for renewal, move to new place, it’s £500, will I get a refund minus adjustment fees?).

Additionally, is it possibly the cost of living and inflation is affecting insurance prices?

The premium will change if you move address but not necessarily as much as the difference between the two new business quotes. Whilst not exclusively the case, many people mistake insurers and brokers and so don't understand that when buying from a broker they are tied to both broker and insurer. Two new business quotes with the same broker could have different insurers but a mid term amendment are with the same insurer and can result in a very different outcome.

Insurance is impacted by inflation but claims represents at least 60% of premiums (more for Motor) and so the focus is much more on materials and repair costs than the price of bread.

Flight3287462

OP why not ask for a quote for 28 temporary insurance and once you have your new address arrange your annual policy.  

konn1ch1ha

Thanks for the responses all. I have finally decided on an insurer, which was handy for my (multiple) employment status and my pending moving. Never took so long on choosing an insurer!