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Excessive insurance premium
langmad
Posts: 9 Forumite
Hi,
My mother in law has recently been widowed. It has just come to light that her renewal for house contents and building cover with Santander is £1500 a year!!!!!!!! I have just done a couple of searches on comparison sites and the average price is £125 a year. I think that this insurance company should be ashamed of themselves. To me it is a clear case of taking advantage of the older generation who do not understand comparison websites and who remain loyal with the same company for several years. Obviously I will now discuss it with her with a view to changing providers.
My mother in law has recently been widowed. It has just come to light that her renewal for house contents and building cover with Santander is £1500 a year!!!!!!!! I have just done a couple of searches on comparison sites and the average price is £125 a year. I think that this insurance company should be ashamed of themselves. To me it is a clear case of taking advantage of the older generation who do not understand comparison websites and who remain loyal with the same company for several years. Obviously I will now discuss it with her with a view to changing providers.
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Comments
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Hi,
My mother in law has recently been widowed. It has just come to light that her renewal for house contents and building cover with Santander is £1500 a year!!!!!!!! I have just done a couple of searches on comparison sites and the average price is £125 a year. I think that this insurance company should be ashamed of themselves. To me it is a clear case of taking advantage of the older generation who do not understand comparison websites and who remain loyal with the same company for several years. Obviously I will now discuss it with her with a view to changing providers.
I disagree, she would have had a renewal letter each year stating the renewal price and accepting it by staying with them.
Comparing insurance to find the best price is nothing new and many people did this before comparison sites and it's still possible by ringing around to find the best price, so there was nothing stopping her from doing this.
Also you say the "average" price on comparison sites is £125, do you really mean average as in add them all up and divide by how many quotes you had. Or do you actually mean the cheapest few are around £125?0 -
I disagree, she would have had a renewal letter each year stating the renewal price and accepting it by staying with them.
I disagree with your disagree. My sister was in the same boat as the OP's relative. You have to understand that older people become loyal to the company they have been with for years and can't believe they are being ripped off. I had a hard time pursuading her to save £400 by moving to the Co-op and she felt guilty about moving. The companies ARE taking advantage of older people's trust and loyalty and it is a disgusting practice. They should be named and shamed. Aviva in this case.0 -
EdGasketTheSecond wrote: »I disagree with your disagree. My sister was in the same boat as the OP's relative. You have to understand that older people become loyal to the company they have been with for years and can't believe they are being ripped off. I had a hard time pursuading her to save £400 by moving to the Co-op and she felt guilty about moving. The companies ARE taking advantage of older people's trust and loyalty and it is a disgusting practice. They should be named and shamed. Aviva in this case.
That is very stereotypical and not every old person is determined to stay with one company and oblivious to paying too much. My grandmother (who is in her 90's) uses a broker and switches companies to get the best price for insurance each year. I've also done comparisons online for her at her request and found that i could only get comparable insurance for around £20 cheaper than the best price she had got.0 -
EdGasketTheSecond wrote: »They should be named and shamed.
Well I think you should be named and shamed for not educating your sister about this earlier.0 -
Why hadn't they changed before?
Even in the old days people either used a broker, or phoned around to get quotes. Its not a new thing that it is cheaper to change.
I don't see how this is any different for anyone else. Some years you match their target audience, some years they price you out.
If she is recently a widow then its something that the two of them could have sorted out a long time ago. My elderly parents manage to change their insurances, gas companies etc every year on their computer.“Time is intended to be spent, not saved” - Alfred Wainwright0 -
No they don't, I always shop around.a clear case of taking advantage of the older generation . . .
No I don't . . .EdGasketTheSecond wrote: »You have to understand that older people become loyal to the company they have been with for years and can't believe they are being ripped off.
Two statements, clearly and wrongly stereotyping us oldies . . :rotfl:0 -
Insurance consumers need to be made aware insurers use pricing when they really don't want to continue to insure a risk.
The insurer may be unable to refuse to offer terms and instead quotes a high premium to discourage renewals.
The insurer is saying "please find another insurer as we don't want this business any more" while the consumer is railing against the premium increase not understanding what is happening and is desperately trying to be loyal.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I agree with Kingstreet. Your MIL probably wasn't the sort of risk that the insurer really wanted on their books. However, they were still eligible for the insurance based on their underwriting criteria. With natural insurance premium increases along with other influences, the premium was always going to be higher. Maybe if your MIL is elderly, you should take more of an active role with looking at her finances.You'll find me sat in the corner with a pack of dry roasted and a Guinness.0
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Yawn; you evidently have not been in this position with an older relative. They get stuck in their ways and don't want 'help'!
I'm over 71 and I'm not stuck in my ways. I use comparison sites for my insurance and gas and electricity and change to the cheapest every year.over 73 but not over the hill.0
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