Not upheld: Other regulated complaint complaint against Aviva UK Digital Limited

Decision detail

Summary

Mr C complained to QMH about premium increases following policy changes he made before renewal. He initially changed his car storage from driveway to garage and his occupation, expecting a premium reduction but receiving an increase from £321.74 to £327.01. After changing the storage back to driveway, the premium increased further to £328.55. Mr C sought to revert to his original premium and requested an additional £40 reduction based on his driving history. QMH declined, citing daily rate changes and the remaining occupation change. The ombudsman upheld QMH's position, finding that insurers are entitled to apply current rates when policy changes are made and that this is a standard commercial practice not subject to ombudsman interference.

The Ombudsman's reasoning

The ombudsman determined that it is the customer's responsibility to notify the insurer of changes affecting risk, and it is the insurer's commercial decision to set pricing based on its risk appetite. Daily rate changes are a standard business practice, and each insurer applies different pricing based on their individual risk assessment. The ombudsman found that QMH applied its rates consistently and fairly at the time each change was made. While acknowledging potential confusion from the change date coinciding with the renewal date, the ombudsman concluded that QMH treated Mr C no differently than any other policyholder in similar circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website