Insurance policies can establish annual premium increases based on various factors, such as age, price indexes, etc. Normally, increases of around 1 or 2% are considered acceptable, especially in insurance modalities in which, at the same time as the premium, the insured capital is revalued in the same proportion (home, business, etc.)
The current reality is that premiums are very adjusted downwards, and some insurers take advantage of the annual renewal to raise premiums unilaterally and without the consent of the client.
Am I required to renew insurance with a higher premium?
The reality is NO!
If the insurer wants to raise the premium above the regulation of the contract, it must contact the client with a period of 2 months in advance, and request their acceptance of the increase in the premium.. If the policyholder does not accept said increase, the insurer may refuse to extend the insurance contract.
In case of not making the 2-month notice, the increase may not be made without the express consent of the policyholder, and the insurer will be obliged to respect the premium of the previous year.