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    • langmad
    • By langmad 11th Jan 18, 11:07 AM
    • 7Posts
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    langmad
    Excessive insurance premium
    • #1
    • 11th Jan 18, 11:07 AM
    Excessive insurance premium 11th Jan 18 at 11:07 AM
    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.
Page 1
    • takman
    • By takman 11th Jan 18, 2:32 PM
    • 3,395 Posts
    • 2,996 Thanks
    takman
    • #2
    • 11th Jan 18, 2:32 PM
    • #2
    • 11th Jan 18, 2:32 PM
    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.
    Originally posted by langmad
    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?
    • EdGasketTheSecond
    • By EdGasketTheSecond 11th Jan 18, 10:46 PM
    • 586 Posts
    • 315 Thanks
    EdGasketTheSecond
    • #3
    • 11th Jan 18, 10:46 PM
    • #3
    • 11th Jan 18, 10:46 PM
    I disagree, she would have had a renewal letter each year stating the renewal price and accepting it by staying with them.
    Originally posted by takman
    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.
    • takman
    • By takman 12th Jan 18, 10:40 AM
    • 3,395 Posts
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    takman
    • #4
    • 12th Jan 18, 10:40 AM
    • #4
    • 12th Jan 18, 10:40 AM
    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.
    Originally posted by EdGasketTheSecond
    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.
    • agrinnall
    • By agrinnall 12th Jan 18, 12:36 PM
    • 20,335 Posts
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    agrinnall
    • #5
    • 12th Jan 18, 12:36 PM
    • #5
    • 12th Jan 18, 12:36 PM
    They should be named and shamed.
    Originally posted by EdGasketTheSecond
    Well I think you should be named and shamed for not educating your sister about this earlier.
    • indesisiv
    • By indesisiv 12th Jan 18, 2:14 PM
    • 5,792 Posts
    • 19,059 Thanks
    indesisiv
    • #6
    • 12th Jan 18, 2:14 PM
    • #6
    • 12th Jan 18, 2:14 PM
    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 Wainwright

    Costa Rica & England in the MSE World Cup Sweepstake
    • societys child
    • By societys child 12th Jan 18, 4:34 PM
    • 5,222 Posts
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    societys child
    • #7
    • 12th Jan 18, 4:34 PM
    • #7
    • 12th Jan 18, 4:34 PM
    a clear case of taking advantage of the older generation . . .
    Originally posted by langmad
    No they don't, I always shop around.


    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.
    Originally posted by EdGasketTheSecond
    No I don't . . .

    Two statements, clearly and wrongly stereotyping us oldies . .

    • kingstreet
    • By kingstreet 12th Jan 18, 5:50 PM
    • 33,565 Posts
    • 18,204 Thanks
    kingstreet
    • #8
    • 12th Jan 18, 5:50 PM
    • #8
    • 12th Jan 18, 5:50 PM
    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.
    • ConMan
    • By ConMan 13th Jan 18, 7:33 AM
    • 43 Posts
    • 29 Thanks
    ConMan
    • #9
    • 13th Jan 18, 7:33 AM
    • #9
    • 13th Jan 18, 7:33 AM
    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.
    • EdGasketTheSecond
    • By EdGasketTheSecond 13th Jan 18, 1:07 PM
    • 586 Posts
    • 315 Thanks
    EdGasketTheSecond
    Well I think you should be named and shamed for not educating your sister about this earlier.
    Originally posted by agrinnall
    Yawn; you evidently have not been in this position with an older relative. They get stuck in their ways and don't want 'help'!
    • r2015
    • By r2015 13th Jan 18, 3:12 PM
    • 1,012 Posts
    • 284 Thanks
    r2015
    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.
    Heading towards 72 and getting even more forgetful and confused and tending to ramble even more.
    If you think I've asked this before I probably have.
    • agrinnall
    • By agrinnall 13th Jan 18, 4:00 PM
    • 20,335 Posts
    • 16,088 Thanks
    agrinnall
    Yawn; you evidently have not been in this position with an older relative. They get stuck in their ways and don't want 'help'!
    Originally posted by EdGasketTheSecond
    No, I am in exactly that position, but I didn't go on a forum to moan and whinge about the nasty insurance companies like some, I accept that my ageing relative has the ability to make their own decisions.
    • EdGasketTheSecond
    • By EdGasketTheSecond 13th Jan 18, 9:36 PM
    • 586 Posts
    • 315 Thanks
    EdGasketTheSecond
    What was particularly cynical of Aviva was that they told my sister she was getting a discount due to her previous profession while actually they were charging three times the going market rate. My sister of course believed this in good faith and thought she'd be losing out by going elsewhere and not getting the 'discount'. Sure savvy people will laugh but that's how 'nasty insurance companies' treat their older, loyal customers.
    • tempus_fugit
    • By tempus_fugit 14th Jan 18, 2:22 PM
    • 422 Posts
    • 390 Thanks
    tempus_fugit
    Beats me as to why any intelligent person remains loyal to companies that quite clearly either don't want your custom any more or at best don't see that loyalty as in any way valuable to them. And it's not taking advantage of older people, you're either willing to make the small effort of shopping around for things or not. Expecting companies to be just reward people for being loyal, however, is just pie in the sky. Reward them for their disdain by moving elsewhere. If they don't then that's entirely up to them.
    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.
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