Can my insurance company increase my premium after I make a claim?
Yes — but the law now forces them to show you the number, not just quietly bill it.
Yes, this is entirely legal — insurers price risk based on your claims history, and a claim generally signals higher future risk. There's no law capping how much your premium can rise after claiming. What has changed is transparency: since April 2017, FCA rules require your renewal notice to clearly show what you paid last year right next to the new price, along with a prominent message encouraging you to shop around — specifically so an increase, whatever's driving it, can't be hidden in the way it's presented.
What the FCA renewal transparency rules actually require
| Requirement | Purpose |
|---|---|
| Show last year's premium clearly at each renewal | Lets you directly compare against the new price, rather than assessing it in isolation |
| Prominent, clear "shop around" message | Actively nudges renewing customers to check the market, not just auto-renew |
| Annualised premium if mid-term changes occurred | Stops firms from comparing against a misleadingly low pre-adjustment figure |
| Accurate, not discounted-away, prior premium figure | The comparison must use what you actually paid, not a pre-discount list price |
These rules have real teeth
The FCA has actively enforced this: it required one major insurer to contact affected customers after finding it had shown an inaccurate, pre-discount prior-year premium in renewal documents rather than what customers actually paid — and those customers were entitled to switch penalty-free with a refund if they'd been misled. The regulator has also publicly warned the wider industry for failing to properly implement the shop-around messaging and premium disclosure requirements.
Why this matters practically after a claim
- Your renewal notice should make it obvious what you paid last year versus what you're being asked to pay now — if it doesn't, that's worth querying directly.
- A large increase after a claim isn't unlawful, but the transparency rules exist precisely because insurers previously relied on customer inertia at renewal, and claim-driven increases are one of the biggest reasons to actually shop around.
- Getting quotes from other insurers costs nothing and is the most effective response to a claim-driven premium hike, since the increase itself generally isn't something you can dispute as unfair.
What to do about a post-claim premium increase
- Check your renewal notice actually shows last year's premium clearly and accurately — not a pre-discount or otherwise misleading figure.
- If it's unclear, missing, or looks inaccurate, raise this directly with the insurer and, if unresolved, with the Financial Ombudsman Service.
- Get comparison quotes from other insurers before your renewal date — a claim on your record doesn't mean every insurer will price it the same way.
- Ask your current insurer directly whether the claim is the reason for the increase, and by how much, so you understand what you're comparing against elsewhere.
- If you switch, confirm your current policy cancellation and any refund terms before your new policy starts.
What must my renewal notice legally show me? Under FCA rules, your renewal notice must disclose last year's premium clearly enough to compare against the new one, and display a prominent, clear, straightforward message encouraging you to shop around. If your circumstances changed mid-term, firms must show an annualised premium reflecting those adjustments rather than a misleading like-for-like figure.
What can I do if my renewal price jumped without clear explanation? Check that last year's premium is accurately and clearly disclosed on your renewal notice — the FCA has fined and required insurers to contact customers over inaccurate or unclear renewal disclosures before. Beyond that, comparing quotes elsewhere is your main practical lever, since the price itself isn't something you can dispute as unfair simply because it rose.
Related questions
Official sources
Facing a steep renewal price rise after claiming?
Use Kibbo's Insurance & Claims tools to check your renewal disclosure and compare your options.
Explore Insurance & Claims tools →