'LV hiked my premium by £500 shortly after I claimed for a damaged phone'

Which? helps an LV customer challenge an unexpected insurance premium hike
Hannah DownesSenior Writer

Hannah Downes covers consumer rights issues for Which?, helping to empower consumers and make their lives fairer

A hand in a yellow sweater reaches to pick up a cracked smartphone from cobblestone ground near brown leather boots.

Do you have an issue you need put right? Which? is here to help get your consumer problems sorted.

Dear Which?,

I dropped my iPhone on my patio at home, which cracked the screen. The Apple store confirmed the repair would cost £389, so I contacted LV General Insurance to see if I could claim on my home insurance policy.

LV confirmed I was covered and transferred me the repair cost minus the £50 policy excess.

A few weeks later, I was surprised to receive an email from LV stating that, because of my claim, my premium was going to immediately rise by £492.14. This was an increase of approximately 30% and a sum far higher than the cost of the repair.

LV said it was entitled to raise my premium under the T&Cs of my contract. If I didn't pay it, it said my cover would be cancelled. A day or so later, LV confirmed that it had reviewed my case but that the increase still stood. 

I am astounded that LV chose to take this course. Can you help me please?

Nigel

Put to Rights

Hannah Downes consumer rights expert at Which? says:

Unfortunately, claiming on your insurance is rarely straightforward. In September, Which? made a super-complaint to the Financial Conduct Authority (FCA) about the home and travel insurance markets after we found widespread problems with how policies are sold, explained and how claims are managed. 

After speaking with Nigel, Which? challenged the price hike with LV on his behalf.

LV explained that Nigel's claim was made shortly after he'd renewed his policy, but that the damage had occured prior to the renewal - which therefore had an impact on his premium.

‘When a claim is made on a home insurance policy, it can result in a premium impact if the incident happens prior to renewal,’ it said, adding that it was sorry it hadn't discussed alternative options with him.

LV then contacted Nigel and he chose to return the £339 sum in respect of his claim, and his premium returned to the previous figure. LV also offered Nigel £125 for the inconvenience.

With faulty or damaged products, it can be hard to decide whether to claim on your insurance or pay the repair costs upfront.

If you find yourself in this situation, it’s worth considering the impact the claim may have on your insurance. You can ask your insurer about the terms of your policy before you decide to claim.

You might also look at the manufacturer or retailer warranty to see what you’re entitled to under those terms.

If you have a dispute with an insurer that you’re unable to resolve, you can escalate your complaint to the Financial Ombudsman Service (FOS), and get in touch with us at yourstory@which.co.uk.

Need to know

  • If you have a faulty or damaged product, consider whether it's better to claim on your insurance or pay the repair costs upfront. Make sure you know your faulty goods rights before you take any action. 
  • Ask your insurer about the terms of your policy and check your manufacturer or retailer warranty to see what you're entitled to.
  • If you're unhappy with the service from your insurer, you can escalate your complaint to the FOS.

Get in touch. If you've got a consumer rights problem you need put right email us at yourstory@which.co.uk

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