‘My 97-year-old disabled father is paying £190-a-year to insure a £149 fridge’

Annual fridge insurance cost more than a new one  

Has a company treated you unfairly? Our consumer champion, Katie Morley, is here to help. For how to contact her click here.  

Dear Katie,

I have discovered that my 97-year-old disabled father has been paying an extortionate amount for breakdown cover on a Beko fridge, since 2011.

Today, the fridge costs £149 to buy new. His insurer, Domestic and General, charged £169 to insure it last year, and wanted £190 this year. I dread to think how much my father has paid for cover on what is essentially a throwaway item.

I complained to D&G but it did not uphold my complaint. Instead, it asked my father if he would like to start the policy again for £83 a year.

TB, via email

Dear TB,

2020欧洲杯足球即时比分Your father bought this fridge for £140 in 2011, taking out insurance at the same time. I have established that back then, D&G accidentally calculated his premiums based on a £300 fridge, instead of a £140 one.

So from the start, this policy was significantly dearer than it should have been. Then, these already bloated premiums were allowed to rapidly escalate and, absurdly, eclipse the price of a new fridge.

Over the nine years, your father paid £700 to insure his fridge – almost enough to buy five brand-new ones. This policy has ensured your father was royally ripped off. It is a disgrace. D&G must urgently review premium rises, as well as checking pricing errors haven’t seriously harmed other customers.

Your father has now received an apology and a refund for £2,400 from D&G. This includes the fridge premiums, £200 compensation, and £1,500 for premiums that were paid on a separate washing machine policy.

D&G has paid this despite there apparently being no problem with it. Needless to say, your father will no longer be insuring his white goods.

The full Katie Morley Investigates column will appear in print every Saturday and Sunday. You can get an early taste every Friday at 1200.

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