Campaigners claim AI algorithms are behind hefty increases in renewal quotes for home and car cover
Shortly after her husband died, Kay Lawley* received renewal quotes from the couple’s home and car insurance provider, Ageas. She told the company of his death and was stunned that the quotes then increased by up to 15%.
Her car insurance quote went from £301 to £348, while her home and contents policy rose by almost 12% – from £1,039 to £1,161.
Continue reading...Under-30s risk a huge hike in huge car insurance premiums later in life if handed the IN10 endorsement
Young people using private electric scooters on roads and pavements risk facing huge insurance premiums when they want to drive a car, says the comparison website MoneySuperMarket.
It emerged this week that almost 800 children aged 13 to 16 had been issued an IN10 endorsement – the code used by the police for “using a vehicle uninsured against third-party risks” since the start of 2020. It stays on a person’s driving record for four years from the date of the offence.
Continue reading...ABI reports annual jump of £157 in first quarter of 2024 but says 1% increase on previous quarter indicates rises are easing
The average price paid for comprehensive motor insurance in the UK was about a third (33%) or £157 higher in the first quarter of this year than a year earlier, according to figures from the Association of British Insurers (ABI).
Based on analysis of policies sold, the typical price paid in the first quarter of 2024 was £635, marking a 1% increase on the previous quarter, the ABI said.
Continue reading...Company breached rules that state existing policyholders should not be charged more than new ones
Direct Line will pay about £30m to customers who were charged more than they should have been to renew car and home insurance policies.
The UK’s second biggest car insurer said it discovered the overcharging problem after the incorrect implementation of the new pricing practice regulation that came into force in January last year. Under the rules, existing customers should not be charged more than if they were a new customer.
Continue reading...Insurer told to reassess vehicle write-offs to identify any unfair settlements
Britain’s second-biggest car insurer, Direct Line, has been ordered to go back through five years of claims after admitting it had underpaid some customers who had their cars and vans written off.
After an investigation into the car insurance market that began in December 2022, the Financial Conduct Authority (FCA), this week ordered Direct Line to conduct a review of claims where vehicles had been written off “to identify any policyholders who received unfair settlements and provide them with appropriate redress”.
Continue reading...