Filing just a single home insurance claim can drive up the cost of a renewal policy by more than 50 percent, according to Which?
Consumer group analysis shows that home insurance customers who have made a single claim are charged an average of 57 percent or £91 more than customers who have not made a claim.
Households without claims pay an average of £161, while those who have made a claim can pay around £252 and those with two home insurance claims can pay an average of £359 – a huge increase of £198 compared to a no-claim policyholder.
This compares with an average increase of £69 for drivers who had made two recent car insurance claims.
Motorists who made two previous claims were charged an average of £955 for cover.
One of the reasons home insurance customers experience steeper claim price increases than auto insurance customers may be the costs needed to rectify the situation.
Among home insurance claimants, the most commonly reported reasons for claiming were:
- accidental loss
- Accidental Damage
- Escape from water
All of this can lead to complex or expensive replacement jobs, or potential property security concerns.
The three most frequently reported motor insurance claims were accidents where the driver was at fault but there were no injuries, no-fault accidents and single-vehicle accidents.
That? was helped by comparison website GoCompare to look at an average of millions of quotes received by drivers and households using its service between January and August 2021.
Ryan Fulthorpe, auto and home expert at GoCompare, said: “If you make a claim on auto and home insurance, your premiums will almost certainly rise the following year. And looking at the data, it turns out that the more claims you make , the more it will affect the price you pay.”
The survey also found that car insurance drivers who had made one claim paid an average of £81 less than those who had not previously claimed.
One possible explanation is that drivers who take the time to look for better deals may avoid paying more, those behind the study suggested.
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Jenny Ross, editor of Which? Money, said: “You might decide it’s not worth making a claim at all, but insurers may ask you to disclose incidents that could have led to a claim.
“Honesty is always the best policy, otherwise your insurance could be voided.”
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