Grieving Couples Face Steep Insurance Premium Hikes After Partner's Death
For many people who have recently lost a partner, renewing their insurance policies has become an agonising experience. Many insurers are increasing premiums by as much as 15% after the death of one party in a joint policy, leaving bereaved couples to pick up the bill.
Ageas, a leading UK insurer, recently raised Kay Lawley's car insurance quote by £47 from £301 to £348, and her home and contents policy by almost 12% – from £1,039 to £1,161. Despite being the sole policyholder on both policies, she was stunned that the quotes increased so dramatically after informing the company of her husband's death.
Lawley is not alone in her experience. A widow who contacted Swinton Insurance reported an even steeper hike of £441 on her renewal quote after her husband died. The insurance provider initially raised her policy from £200 to £641, before later accepting a revised quote from another insurer for £229.
Industry insiders argue that insurers view a single policyholder as higher risk than joint policyholders, due to factors such as reduced household income and increased responsibility for the remaining partner's care. However, these decisions are often opaque and difficult for grieving couples to understand.
Fairer Finance, a campaign group, claims that insurers' pricing practices are becoming increasingly insensitive and that the use of artificial intelligence is accelerating complexity without providing sufficient transparency. The group's managing director, James Daley, says: "These cases highlight the lack of humanity that sits within many insurers' pricing algorithms."
In response to criticism, Ageas has acknowledged its process had failed in Lawley's case and has refunded the additional premiums it charged her. However, she will lose the discount on her policies when they are next renewed.
The Association of British Insurers claims that providers have the freedom to make commercial decisions on prices based on their risk appetite, but declined to explain why a driver with a history of no claims is considered higher risk once they live alone.
As for Swinton Insurance, the company has apologised for the distress caused by Lawley's experience and said it will offer compensation. It has also promised to review its processes to prevent similar incidents in the future.
The bereavement penalty may seem like a minor issue for some, but for those who have recently lost a partner, these hikes can be devastating. As one grieving widow put it: "I had hoped that the world might have moved on from its bias towards coupledom, but clearly not."
For many people who have recently lost a partner, renewing their insurance policies has become an agonising experience. Many insurers are increasing premiums by as much as 15% after the death of one party in a joint policy, leaving bereaved couples to pick up the bill.
Ageas, a leading UK insurer, recently raised Kay Lawley's car insurance quote by £47 from £301 to £348, and her home and contents policy by almost 12% – from £1,039 to £1,161. Despite being the sole policyholder on both policies, she was stunned that the quotes increased so dramatically after informing the company of her husband's death.
Lawley is not alone in her experience. A widow who contacted Swinton Insurance reported an even steeper hike of £441 on her renewal quote after her husband died. The insurance provider initially raised her policy from £200 to £641, before later accepting a revised quote from another insurer for £229.
Industry insiders argue that insurers view a single policyholder as higher risk than joint policyholders, due to factors such as reduced household income and increased responsibility for the remaining partner's care. However, these decisions are often opaque and difficult for grieving couples to understand.
Fairer Finance, a campaign group, claims that insurers' pricing practices are becoming increasingly insensitive and that the use of artificial intelligence is accelerating complexity without providing sufficient transparency. The group's managing director, James Daley, says: "These cases highlight the lack of humanity that sits within many insurers' pricing algorithms."
In response to criticism, Ageas has acknowledged its process had failed in Lawley's case and has refunded the additional premiums it charged her. However, she will lose the discount on her policies when they are next renewed.
The Association of British Insurers claims that providers have the freedom to make commercial decisions on prices based on their risk appetite, but declined to explain why a driver with a history of no claims is considered higher risk once they live alone.
As for Swinton Insurance, the company has apologised for the distress caused by Lawley's experience and said it will offer compensation. It has also promised to review its processes to prevent similar incidents in the future.
The bereavement penalty may seem like a minor issue for some, but for those who have recently lost a partner, these hikes can be devastating. As one grieving widow put it: "I had hoped that the world might have moved on from its bias towards coupledom, but clearly not."
Insurance companies are being so unfair to bereaved couples! 15% hike in premiums is just ridiculous 
. I mean, can't they see that it's not like the person died and then they're getting a raise 
? It's just that now one person has to pay the entire bill alone 
. And what's with all this "higher risk" nonsense? Are insurers saying that single people are more likely to crash their car or forget to pay bills on time? 
Come on, get some common sense! 
I feel so bad for Kay Lawley and all the other couples who are going through this 
. It's like, you just lost your partner, you're already in a tough spot, and then insurance companies hit you with huge premium hikes 
. I don't get why they can't see that single policyholders are still taking care of their households and paying their bills on time 
.
.
.
this is just so harsh, I feel like insurers are taking advantage of people at their most vulnerable 
i cant even imagine having to deal with this 
anyway, i think insurers should be more transparent about why they're increasing premiums so much, especially after a death 
and some sort of compensation is due for these grieving couples 
these companies need to rethink their business model ASAP 
15% hike in premium is already steep enough dont need them to get greedy too 
15% increase after someone dies? what if you're already struggling to make ends meet? a 12% increase on my home contents policy would be devastating 
. Fairer Finance is on to something here, these companies need to get their act together and prioritize people over profit 
.