Direct line insurance rip off ?

In 2007 i switched my home (buildings) insurance to Direct Line for c £ 530 pa (a good £300+ saving on lloyds TSB). I was happy as larry.

On my return from hols yesterday find the annual renewal letter.It is automatic renewal naturally- insurance people understand all about the power of inertia and what the behavioural psychologists  (see nudge by thaler and sunstein) call default settings)

The price is , wait for it, £1489.30.

This is inflation of Weimar Republic type proportion of 280% over 4 years.

(when i call they offer to cut it to £800 or so)

All goes to show- the default settings trick is ok in the hands of those with your best interests at heart- such those getting you to save for a pension- but for Direct Line it was an opportunity to rip off a dozy consumer . That dozy consumer was me- i had let the price drift up each year and DL took the fact that i hadnt challenged the price as a chance to hit me with a truly rip off price in 2011.

Meanwhile my car insurance with Admiral has gone down-i had made no claims on either car or buildings insurance during that time. Pick the bones out of that.

Published by joinedupthink

Strategist, writer and teacher. Ex Ogilvy and ex Google. I am currently working on a start up called Chimnie, which will revolutionise the property market

2 thoughts on “Direct line insurance rip off ?

  1. i agree to many small prints quick to take do not want to pay out is not worth insurance anymore

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