NLIC.org

Neil Said:

Is there a legal limit to how much an insurance policy can be increased by in a single year?

We Answered:

There is no legal limit, because you are free to shop around and find a cheaper deal. Most people tend to stay with the same insurance company (or bank, utility supplier, etc). The companies know this, so they will often advertise great deals for new customers and then have much higher renewal prices. A few minutes phoning round or using a price comparison web site will almost certainly get you a much better deal.

Having said that, there may be a legitimate reason why the price is much higher. For example, if there has been a spate of burglaries in your area, or there have recently been floods, then the insurance companies may decide the risk is now higher which will push up premiums. This could affect prices from all insurers, but that does not mean you won't be able to find a better price.