We are longstanding customers of LV= and have had home insurance with them for many years. But I have recently discovered that it has been overcharging me on our policy renewal for several years. This month I received a renewal quote for £315.40. I phoned to ensure it was the best deal available, an assurance they gave me. I checked the LV= website and replicated my renewal invite and got a quote for £146.82. I phoned LV= again and they agreed the two policies were identical and offered to set up the “online version” over the phone, which we did.
When I asked how they could justify misleading me, and attempt to overcharge me by 115% (£168.58), the representative said “no comment”. I expected LV= to operate fairly for all concerned because of their mutual status. Clearly I was wrong and I believe your readers need to be aware of the way they operate. JM, Reigate, Surrey
This chimes with the industry practice (which, unsurprisingly, it always denies) of sucking in new customers with better deals than those given to existing policyholders.
We contacted LV= and its managing director of home insurance, Selwyn Fernandes, said there were two specific causes for the difference in the price. He said: “[JM’s] new quote benefits from an online discount, plus, since he took out his original policy in 2007 the flood risk of his property has reduced.
“The price JM has paid for the renewal of his policy is correct. I would, however, like to apologise for the way in which JM’s questions about the renewal of his policy were handled. It is clear that he has not received the service that we would expect to provide.”
We found this puzzling. Why, if the flood risk had reduced, was your premium raised to £315? Meanwhile, we understand you have not renewed your existing policy with LV= but have taken out the cheaper online policy instead.
We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, The Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number
