Switching whilst using Household Legal Protection (ie active claim)

Sledgehead · 29 April 2018 at 7:31PM

After being tripped by aisle clutter in a well known supermarket (they have accepted liability), I engaged a solicitor to bring a personal injury claim against the establishment concerned under the terms of the HLP (household legal protection) policy extension of my house insurance.

I have kept with the same insurer ever since, largely because the blessed claims process has taken up time in my busy life.

However, I notice that comparison sites suggest I am overpaying, so I'd like to switch.

My insurer, Swinton, assured me over the blower that claims against the HLP do not affect my no-claims bonus, so presumably the claim's active nature would be no barrier to switching if I chose to do so.

I am however wary of issues I have not foreseen. I'd be much obliged to hear from anyone out there who has encountered the same situation and learned a thing or two about whether I should switch before the claim is settled (likely to be in six months due to limitation).

Thanks in advance.

Zorillo · 29 April 2018 at 8:55PM

You can change insurer whenever you want, the fact you have a claim outstanding shouldn't be a barrier.

BooJewels · 29 April 2018 at 10:04PM

I realise that this view will likely go against the majority view here, but I've always felt some sort of loyalty towards insurers who have settled a claim and have stayed with them for a while to allow them to recoup some of their outlay.

I personally - purely on moral grounds - would not change insurers in the middle of a claim or shortly after one.

I've had a couple of big settlements after significant storm damage and 2 legal cases won with their legal cover, so whilst I'm pretty sure, on an annual basis, that I've paid more for my insurance than I perhaps needed to - I'm still very much on the plus side of the equation, on balance, long term. It's very much a personal view, but I wouldn't be comfortable in changing mid-claim.

Good luck with your case - we had good results with the legal team provided by the insurers. I'd have no hesitation in using them again if something qualifying occurred.

Sledgehead · 29 April 2018 at 10:17PM

Thanks to Z and BJ for your replies.

I had pretty much concluded that the claim was no obstacle to me switching (legally speaking). I was just wondering whether there were other downsides. A for instance might be disinterest from the insurer should I experience dissatisfaction with the provided solicitor.

As to staying with an insurer as a 'thank you' for paying out, I should add that in this case:
- the underwriter of the HLP is likely different from the underwriter of the main house insurance. Moreover, the broker is unrelated to either afaik, and that would be who I would be changing. It could well be that in changing brokers I actually revert to the underwriter of the HLP which the broker may have 'abandoned' in favour of a cheaper provider .
- because the defendant has admitted liability it is unlikely my insurer will have to pick up any costs, unless that is they have some other arrangement where they pay the Solicitor a fixed fee whether the case is won or lost.

Any further comments gratefully received.

Zorillo · 29 April 2018 at 11:24PM

The underwriter doesn't feel any loyalty to you!

I'm not saying there aren't disadvantages to switching in some circumstances (I've recently done myself out of a free courtesy car by switching car insurer between accident and repairs), but in the circumstances you've presented it's a no-brainer in my opinion.

HLC is underwritten on the basis that they sell many thousands of 'units' and very few of those units make a claim. It's cost to the insurer that includes it within their policy that they sell to you is a fraction of what that insurer charges you for it. The HLC underwriter doesn't know anything about you, not even your name. You are literally 1 anonymous unit to them.

The insurer who includes the HLC in their wider policy won't care, because they don't pay the claim. As Swinton have told you, it doesn't even affect your "no claim bonus" with most insurers (although it is a disclosable claim if the question regarding claims history requires it).

The broker will be slightly miffed, but it's them that's been benefitting from you paying more than you need to, they've only arranged you generic cover, and they don't pay any claims at all.

It's not a moral argument in my opinion.

Sledgehead · 30 April 2018 at 12:33AM

With you on all of that Z. Thanks again for taking the trouble.

Switching whilst using Household Legal Protection (ie active claim)

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