Family contents insurance: Injury each 5 years makes the premium 57% costlier – that's cash
New research shows that households that have claimed home contents insurance once in the past five years pay 57 percent more on average than those that have not.
While it is usually cheaper to insure a home than a car, which one is it? Research has shown that the cost of taking out home insurance can be much higher.
It found that drivers with two recent car insurance claims paid an average of £ 69 more than those who had not made any claims.
However, two recent home insurance claims increased the average premium from £ 161 for those with no claims to £ 359 for those with two claims – an increase of 123 percent.
Household contents insurance customers who have made a claim pay 57% more than those who have not
Even home insurance customers with just one recent claim paid an average of £ 91, which is 57 percent more than customers with no claims.
The reason home insurance customers are facing steeper prices could be because of the nature of their claims.
The reason most frequently cited among home contents insurance claimants was accidental damage at home, with 30 percent of claims covering this.
Another 25 percent were charged with leakage and 9 percent with home theft – all of which could mean complex or costly replacements or potential property security concerns.
Meanwhile, the top three auto insurance claims reported were accidents where the driver was at fault but not sustained any injuries, which was 35 percent.
Other common claims were for involuntary accidents where all costs and deductibles were reimbursed, with 27 percent of drivers making this, while 9 percent were for accidents involving a single vehicle.
Which? Using the comparison site GoCompare, examined the average of millions of offers that drivers and households received between January and August 2021 who use its service.
Unsurprisingly, customers with multiple claims were cited more on average, and the premium rose the more claims were submitted.
However, among auto insurance customers, drivers who had applied paid an average of £ 81, 9 percent less than those who had not previously applied.
This could be because drivers who take the time to look for better deals can avoid paying more.
Drivers who made two applications paid an average of £ 69, 8 percent, more than those who did not, while those who made four paid an average of £ 469, or 53 percent more.
The most common damage to home insurance was accidental loss or damage to the home, data shows
Insurers share customer claims history information in industry databases so they can review what customers say when they apply for insurance.
So, if what the customer said is broadly correct, they shouldn't have to provide additional evidence.
However, if additional evidence is required, it is best to contact the previous insurer and ask him to present it in writing.
Ryan Fulthorpe, GoCompare auto and home rate expert, added, “If you make a claim for auto and home insurance, your premiums will almost certainly increase in the following year. If you look at the data, it shows that the more claims you make, the more the price has an impact.
“A number of motorists are entitled to their insurance, and as our statistics show, this doesn't have to affect the price you pay when you are entitled to your policy.
“Insurance companies will treat claims differently, so you may find that shopping you may not get out of your own pocket.
“However, if you add two claims to the mix, the overall impact is significant.
"Insurers will treat those who have more than one claim differently because they consider the propensity for claims.
However, experts say there are steps you can take if you find that your premium increases significantly after you make a claim.
Jenny Ross, editor of Which? Money, said, “The data shows that making claims can have a significant impact on the price of your insurance, especially for your home.
“If you are not satisfied with your increased premium, then look around as other insurers may be willing to cover you for less.
“You might decide that it is not worth making a claim at all, but insurers can ask you to disclose incidents that could have led to a claim. Honesty is always the best policy, otherwise your insurance could be void. & # 39;
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