'My home insurance jumped from £140 to £1,600' - why you should NEVER auto-renew - MSE News
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Former_MSE_Callum
Posts: 696 Forumite
A MoneySaver whose home insurance policy was due to end this month was shocked to find his premium would have shot up by more than 1,000% if he'd let it auto-renew... HAVE YOU BEEN THE VICTIM OF A SIMILARLY RIDICULOUS INSURANCE RENEWAL QUOTE? LET US KNOW BELOW.
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''My home insurance jumped from £140 to £1,600' - why you should NEVER auto-renew'
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''My home insurance jumped from £140 to £1,600' - why you should NEVER auto-renew'
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Comments
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Would this be at that location in Lincolnshire which had never previously experienced flooding?0
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I had been with the same brokers for 60 years. Last year my car insurance was £338 fully comp.
This year my broker was taken over by another firm, and when my renewal form arrived the premium had gone up to £786. I queried this and was told it was the best deal they could find.
Having seen an advert on TV for Liverpool Victoria saying they did a deal if house insurance was coupled with car insurance i decided to see what they would offer. My house is insured with LV.
One phone call later I had a car policy better than my previous cover at £348 fully comp.
I enjoyed sending photocopies of my new deal to what is now my ex-broker. Needless to say, I never got a reply.
Loyalty for being a customer for 60 years? No such thing.0 -
This doesn't mean that you should NEVER auto-renew. It's perfectly OK to do it if you are happy with the renewal quote, although this rarely happens. The important thing is to check the renewal and get comparison quotes before you renew.Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.0
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My home insurance jumped to £1640 with LLoyds Bank Ins whom I had been with for 33 years When renewal came at £480 I rang to get a nominal reduction, I was asked the age of my house which, because it was pre-1800, resulted in the ridiculous increase despite them having always known the age. I went to Aviva - the only provider I could find who was not concerned about the age0
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My current Home and Contents Insurance is with Admiral. I haven't had a claim for over 30 years yet the quote received today is £280 compared to existing cost of £200. Needless to say I will be seeking new quotes.
Sometimes if you like the particular company just changing to a new policy with your partner as the primay name can work.0 -
Hi all,
I have been with Direct Line for donkey years, the only insurer for this house, and I never made a claim. I also have car insurance with them. I have managed to maintain a similar renewal by always calling them when I got the renewal amount (as this was always very expensive!).
This time I did the exact same, calling them as last year because I was not happy with the renewal. I got the insurance renewal quote for building and contents but from £417.76 last year, this year it jumped to £529.76!!
I tried to convince them to lower the quote but they refused. I called 2 times and talked to 3 different advisors, they all recommended to increase my voluntary excess which now is £300 for each building and contents, and they said that if I went for it, I needed to increase BOTH excesses! In order to get the quote down to about £489 I had to increase my voluntary excesses to £500!! I just found that so unfair. Terribly unfair!
At the end of the day my fear is that if I do so, if I increase my voluntary excesses, then next year they will use that as my base excess and hit me again with another over £100 increase or more and "suggest" again I increase my excess...
I am very disappointed but I do need to take into account that I am dead scared of switching as my house is near the river Thames, and the village was flooded twice in 2013/14 (Dec/Jan) and apparently in Jan 2003. Although my house did not suffer any damage, many in the street did. I have sticked with them from the beginning as the previous owner had them and at the time, it was almost impossible to get an insurance company to cover you for flooding, even to accept you as a customer. Not too sure what to do, if shopping around and leave or pay them the over £100 they ask for, which is more as I pay by monthly instalments.
I have until July 15th to decide so your comments/experiences/ suggestions would definitely help me with my decision.0 -
Every year my car insurance renewal quote with Aviva is always the cheapest I can find anywhere! (Bar a couple of obscure budget insurers I've never heard of who are sometimes £20-£30 cheaper.)
So not every company inflates premiums on renewal.0 -
Every year my car insurance renewal quote with Aviva is always the cheapest I can find anywhere! (Bar a couple of obscure budget insurers I've never heard of who are sometimes £20-£30 cheaper.)
So not every company inflates premiums on renewal.
But this thread is discussing house insurance!
To see why Aviva are not quite the company you think they are when it comes to house insurance see this post:I worked in the insurance industry for 35 years where keeping loyal customers was paramount. They were cheap to keep, no expensive aquisition costs.
I have a friend who is totally loyal to the old Commercial Union, now Aviva. He regularly pays £900 + a year for his 4 bed detatched home ins whith no special extras. Ive told him I could go on line and arrange the same cover with Aviva for around £150, but he insists on renewing with them at the full price --- it cant be the same he says.
Sadly, inertia, ignorance and auto price increases are a part of all insurers stategy.0 -
My home insurance with Lloyds jumped 66% after my first year with them - I appreciate that I 'benefit' each year I change companies from a 'new subscriber' discount, but being in my 60's I remember when loyalty was more important. I do wonder whether anyone has undertaken research to determine whether insurance companies raise the premium each year more for older people who may be less likely to be 'internet-savvy' - i.e. demonstrating overt age-ism.0
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I went with a company my mortgage advisor said was good.
Three mortgages ago.
Every year the price has come down.
It makes the new government "you have been with us for a long time you might get a better price elsewhere" nonselse laughable (it was already, I know what is a good price).
Price is not the most imnportant factor when choosing insurance either. Do check many threads around here for any type of insurance to see why.0
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