Elderly STILL overcharged for home insurance – how you can help
Elderly customers loyal to their home insurer are still getting ripped off with sky-high premiums – over three years after the Financial Conduct Authority launched an investigation.
We’ve warned for years that the insurance industry cynically exploits older customers with auto-renewals that jump up by an absurd amount every year.
These customers are more likely to be seduced by this underhand business model.
Whether it’s because they’re more trusting, or less familiar with comparison tools, they often don’t question the renewal and just pay the higher price.
The evidence is overwhelming – just read the two alarming examples from this year we’ve published below.
When insurers are challenged on this swindle, their defence is always the same: ‘we’re not doing anything wrong, policyholders are free to switch to a cheaper deal.’
But it’s hogwash to argue it falls to an elderly homeowner who has been with the same company for years to recognise they’re being overcharged and do something about it.
Especially when renewal letters often reassure you you’re still getting a “competitive” deal.
Back in 2013, The Financial Conduct Authority (FCA) admitted automatic renewal leads to customers being treated unfairly.
Since then precious little has been done to crackdown on this practice.
Executives at big insures should hang their heads in shame.
But you can do something about it: use our comparison tool to find yourself a cheaper deal.
Here are two stories that show elderly customers are still getting ripped off:
Son takes over dad’s finances and saves £200
Ian Stevens took over his dad’s finances last summer when he was diagnosed with Alzheimer’s.
He found his dad had been paying home insurance renewals to Lloyds for 20 years with no questions asked.
The last letter asked for £349 to cover Ron’s former council house in Walsall.
A quick look online and Ian found a similar policy for just £149.
Halifax demand over £1,000 for elderly couple’s home insurance
Halifax demanded Fred and Judy Calverly fork out £1,152 to protect their £100,000 two-bed terrace in Tameside, Gtr Manchester.
The figure was more than the £850 they paid for the house back in in 1962.
Thankfully, daughter Wendy spotted the rip-off bill and switched them to Hastings at £162, a massive saving of £990.
When Wendy got onto Halifax, the bank incredibly told her it’s up to the customer to check.
She makes a good point when she told us every son and daughter should check their parents’ policies to make sure they are not being ripped off.
Halifax and Lloyds won’t be the only ones.
Get online, use our price comparison tools and make sure you’re getting a fair deal.
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