Pensioner's 30m move pushes insurance bill up $600

When pensioner Ian McKinley moved 30 metres up the street and went to update his insurance details, he got the shock of his life.

At the start of November, when living at 13 Lavinia St, Seven Hills, the 58-year-old renewed the policy on his Holden Colorado and paid $975.

GIO told the western Sydney resident that just moving two doors along, to 9 Lavinia Street, had sent his car insurance premium rocketing up by $609.34.

"I'm angry about it, I'm not happy about it," he said.

"It's just ludicrous, because to me it is just bleeding the customer."

Mr McKinley rang GIO to ask why he has been charged the higher cost when the houses are practically identical.

They said they would make a compromise and only charge him $434.71 more than he paid at number 13 Lavinia street. 

GIO couldn’t explain the price hike, other than to say the new property was at "a higher risk".

"I asked for a written explanation, to justify it - they won't do it," Mr McKinley said.

"If it had any justification ofr it...I am happy to pay it, but there is no justification there for it."

However, after being contacted by A Current Affair, GIO reduced Mr McKinley's premium to be back in line with his old address.

GIO said there had been an "anomaly" in their pricing which should have been identified when Mr McKinley raised the issue.