We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Domestic & General - Premium increase beyond that allowed in contract

Options
I just got an auto-renewal notice on my freezer insurance.  Last 2 years £3.96, this year £5.30.....but in the T&Cs it says max rise in year 2 & 3 is £1.   Call D&G, make complaint.  They call back 2 hrs later saying  they have increased by more than £1 due as they are passing on tax increases, which they are allowed to do under the same clause in T&Cs,.  I reply there were no insurance tax changes in 24/25, so what tax changes are they charging for?  They aren't allowed to just pass on general cost of business expenses / tax rises.  Can't tell me any more, computer gives price and that's the end.

The argument is over 34p/month - but D&G insure 12.3million appliances.  If D&G get away with this for just 10% of renewals, thats thats profit of £5 million per year from price increases outside the terms of the contract!!

I guess most people won't even spot this excess (or illegal?) increase, and if you call D&G citing renewal price too high, they immediately offer a lower price before you can get another word in (£4.08 to me - but have to start a new contract).

Sharks and bandits comes to mind!  Anyone else had this?

Comments

  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    I just got an auto-renewal notice on my freezer insurance.  Last 2 years £3.96, this year £5.30.....but in the T&Cs it says max rise in year 2 & 3 is £1.   Call D&G, make complaint.  They call back 2 hrs later saying  they have increased by more than £1 due as they are passing on tax increases, which they are allowed to do under the same clause in T&Cs,.  I reply there were no insurance tax changes in 24/25, so what tax changes are they charging for?  They aren't allowed to just pass on general cost of business expenses / tax rises.  Can't tell me any more, computer gives price and that's the end.
    Presumably you weren't pay some form of introductory rate at £3.96? The £1 cap is from the standard rate not any intro rate. 

    There are two rates of IPT, 12% and 20%, seems unlikely but perhaps their product has been reclassified and so they must now charge the higher rate? 

    Ultimately if you are unsatisfied with their response you have the right to escalate it to the ombudsman
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.