Feels to me like they have decided to see if they can get away with it. Their "market changes" is more likely to mean someone has decided that the Classic/Morgan market is not worth their effort and to get out of it they just raise the prices and drive the business elsewhere. Quite a common process in the insurance industry it would seem.
I would exit and go elsewhere as it is likely that whilst the terms for cancellation means you wont get all your % of money back the difference between policy prices will still make it cheaper.
I really cannot see how a less powerful version could be considered a higher risk. A Golf R is not cheaper than a Golf GTE so thats cobblers.
