Our guide to insurance price rises
Written by Benedict Harrison
Why the price of your insurance can change when you renew your policy.
When the price of your insurance increases when you come to the renewal of your policy, we understand that it can be difficult to accept. If all your personal details are the same and no claims have been made on your last policy, it’s not always easy to understand why your price might have increased.
In this post, we’ll take a look into the different reasons why insurance prices can increase. We’ll also explain how we’re looking to change the way insurance premiums are calculated so that everyone can get access to fairer insurance products that work for them.
A change to your details
One of the most significant factors insurers use to calculate your premium is your personal information, which includes things like where you live and what vehicle you are driving. If you move house, or you get a new car, this change to your personal details will affect your overall premium.
Changes to your personal details can mean that the price of your insurance increases, decreases or even stays the same. It’s always important to make sure you keep your insurer up to date with any changes to your personal details otherwise you could invalidate your cover.
Claims information and driving history
When insurers calculate your premium, they look at your driving record and claims history. The reason behind this is that if a driver has had more claims on previous policies, it is more likely that a claim will be made on future policies.
If you or another driver claims on your insurance policy, you can expect to see the price of your next policy increase, as insurers think it is more likely that you will have more incidents again in future.
In some cases, you may no longer be eligible to take out another policy with your current insurer, so you might have to shop around for your cover.
What else can increase the price of your insurance?
If no claims have been made on your policy and you haven’t made any changes to your personal details, we understand that an increase in the price of your insurance can be frustrating.
These situations happen because of the way the insurance industry works. Insurers only partially base your price on your details. Your price is also affected by the general cost of insurance. If other drivers have more accidents than expected, everyone’s price goes up because more money is paid out in claims.
At Zego, we don’t think this is fair. That’s why we’re working hard to create simpler, smarter and fairer insurance products. We believe you should be able to pay a price that’s based on who you are and how you drive.
To find out more about how we’re planning to offer fairer insurance products, you can give our team a call on 020 7206 0221. If you’re looking for more information about our products, you can visit our website.