Muristek
I’m a low-risk customer, but my renewal quote is up by 24%
My car insurance renewal quote from LV has increased by 24% from £352 to £438 despite low mileage, a low-risk postcode and no claims. I feel loyal customers are being penalised.PH, Kidlington, Oxfordshire
Insurers have indeed penalised loyalty for years so they can fund bargain premiums to attract new ones, but in January they were banned from doing this by the Financial Conduct Authority. LV told me that during the lockdowns of 2020 and 2021 when cars were driven less, it passed savings on to its customers and that the average cost of motor insurance across the sector was the lowest since 2015. It’s true that the cost of many car insurance policies fell by an average of 6% during the pandemic, but LV actually raised yours by 10% in 2020 and by 15.6% in 2021. When I pointed this out to LV, it clarified opaquely that savings were passed on “where possible”, but that “other factors”, including claims inflation and the cost of repairs, had to be priced in.
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