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i rang my insurance company its free to change details in the first 2 weeks, wanted to add daughter and they said it would be nearly double, the policy was third party only, and no add ons the cheapest online quote,girl on the other end said ill check what it would be third party fire and theft, the result was i received a 27 pound rebate in the post after adding fire and theft . funny people these insurane companies . £199 tp £172tp fire @theft
Edited by Dynamic Dave on 22/04/2008 at 20:20
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Is it actually necessary to do this?
Yes it is. I suppose a few hundred over wouldn't be baulked at, but if you go 1000's over then they may get difficult in the event of claim. More mileage = more risk.
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>> Is it actually necessary to do this? (tell insurer if exceeding est'd annual mileage) More mileage = more risk.
Yes, I realise that - but they do ask for estimates! It would seem hard for a case to be made by them for sevaral reasons, unless they explicitly state that you must tell them, or it is obviously an attempt at fraud - say, estimating 3,000 miles, but travelling 30,000.
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i know how you feel , recently changed the reg for a private plate, £19.00 admin fee to update documents, robbing pink fluffy dice................
Edited by Dynamic Dave on 22/04/2008 at 20:20
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As an ex-Insurance Company employee, I can (sort of) see where they're coming from. Mid-term changes to policies have high overheads due to system 'shortcomings'. Much of the design of these systems is to streamline new business and renewal procedures - not changes (or claims....). Our "vision" was to outsource as much of the administration of a policy to the customer/broker as possible. This was to be enabled by the use of Internet or telephone processes that didn't require human intervention on the part of the company. If you chose to have human contact then you would pay accordingly. This would seem sensible and fair. Otherwise all policyholders have to pay more so that a minority can change their policies for free.
Of course the big problem is with legacy Insurance Company systems that weren't designed to do this and it will take time to change them. Does your Insurance company offer you the ability to change the policy over the Internet? If so, does that service attract an admin fee?
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Does your Insurance company offer you the ability to change the policy over the Internet? If so does that service attract an admin fee?
As far as I know the changes cannot be done over the internet.
The guy I spoke to managed to do the changes there and then. He was typing as I spoke. I can't see that he was doing much more than updating a value in a database.
Frankly, as with the bank charges, I think someone just dreams up a figure they think they can get away with and they know they have the customer over a barrel.
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Yes I realise that - but they do ask for estimates! It would seem hard for a case to be made by them for sevaral reasons unless they explicitly state that you must tell them or it is obviously an attempt at fraud - say estimating 3 000 miles but travelling 30 000.
I think you'll find that most insurance companies have a catch-all which states that must tell them about any changes to your circumstances - which would include an increase in the amount of driving you're doing. I tend to act on the side of caution when it comes to insurance, I don't trust them at all.
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Unless the 2000 miles is a significant increase on the original estimated mileage, I can't in a million years imagine that's a significant change, worthy of telling the insurance company.
What was the original figure? I found when I switched my policy that the premium didn't change from 6000 (lowest) to 15000 miles.
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>> >> Is it actually necessary to do this? >> Yes it is. I suppose a few hundred over wouldn't be baulked at but if you go 1000's over then they may get difficult in the event of claim. More mileage = more risk.
But how do they know how many miles you're doing. None of the insurance companies I've used have asked for the mileage of the car when I started the policy and if you're only with that company for one year the MOT doesn't tell them anything and until your car is 3 years old there's no mileage record anywhere.
Also, as they up the premium if you declare more mileage, shouldn't they send you a rebate if you do less ?
Edited by kith on 22/04/2008 at 22:06
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But how do they know how many miles you're doing.
Here is the "secret". They can ask to look at your car service records!
Your contract with the Insurer is based on the principle of "utmost good faith". [search Google]
That is until you come to make a claim. A retired teacher that I know, who had never made a claim in her life and had stayed with the same Company for over 20 years, had her car stolen and then trashed such that it was a write off.
When the "loss adjuster" came round to see her, he went through her original application, and all subsequent changes to her circumstances, in fine detail. He required every item to be proved. Age, nationality, profession, records of car services. She was treated as if she was committing fraud. In the end, everything was found to be perfectly in order and after weeks of haggling, a satisfactory write off value was agreed.
That lady has since not bothered to replace her car due to the trauma of it being stolen and then compounded by the attitude of the Insurance Company.
Edited by jbif on 22/04/2008 at 23:29
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Coincidence that the admin fee is exactly the same figure as VAT i.e. £17.50 / 17.5% ???
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The ins company would know my mileage because it was a brand new car when first insured with them ('57 plate car on 1st Sept 2007 !). I found, when I was getting quotes, that with many companies the premium does increase as your estimated annual mileage increases - logical when you think about it. As I said, they charged me over £20 extra for the remaining six months for the extra 2000 miles.
For an older car I would imagine they could check the mileage via MoT or service data (often held on dealer network computers these days).
I think you need to ensure that any information the insurance company have is absolutely correct. These days they will try to wriggle out of a claim on the flimsiest excuse.
In 2004 I had a storm damage claim on my summer house. When the insurance co rep came out to inspect the damage she also looked at every room in the house. One of the (tiny) first floor rooms in my extension was built and used as an office (too small for a bedroom). They tried to argue that it was a bedroom and I had underdeclared the number of bedrooms in the house. So they proposed reducing the payout for the summer house! Fortunately, after some argument, I got the full payout.
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But how do they know how many miles you're doing.
This is not the relevant question. If, when you take out insurance, you are asked "How many miles do you expect to drive during the term of your insurance?" - and you answer, truthfully, "10,000" - then why should there be an issue if you claim having driven (say) 12,000 miles during that time? No issue of underhand behaviour, or any such thing.
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This is not the relevant question. If when you take out insurance you are asked "How many miles do you expect to drive during the term of your insurance?" - and you answer truthfully "10 000" - then why should there be an issue if you claim having driven (say) 12 000 miles during that time? No issue of underhand behaviour or any such thing.
Sorry, but I feel sure you are wrong. Most insurance policies include an on-going "duty of disclosure". I quote below the relevant section from my policy document (abridged). Note point number 8:
"What should I do if my circumstances change during the period of insurance?
You must tell us as soon as possible if any of the following occur:
1. you make changes to your car which improves its value, performance or attractiveness to thieves
2. you change your car
3. you want to use your car for a purpose not included in your schedule
4. you become aware of any medical condition of any driver named on the policy which may affect their ability to drive
5. you or any other driver named on the policy are convicted of a motoring offence other than fixed-penalty parking offences
6. you change the address where you normally keep your car
7. you or any other driver named on the policy change your occupation
8. you change your annual mileage.
9. you or any other driver covered by your policy are convicted of any offence relating to dishonesty, fraud or arson.
We may then re-assess your cover and premium. If you don't tell us about any relevant changes, we may reject or reduce any claim or treat you as being uninsured. We may charge you an administration fee for any changes you make to your policy details during the period of cover. This is shown in your policy schedule."
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For the 1st time in nearly 7 years I bought a brand new car - E-sure had covered the car for 6.5 of the 7 years and charged me £20.
I wrote a complaint letter saying I understood repeated changes cost money but to change a car reg and model once in 6.5 years and say it cost them money was rubbish.
I received £20 refund in about 7 days from writing.
Their £20 charge I see is now £17.50 with my renewal last month.
If everybody wrote in and complained at the £20 "admin Fee" they would soon cancel the charges as replying to every letter probably costs them £30!
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I was told I was being charged a £20 "admin fee" by my old insurer when I moved house and updated them with my new address. At the time I had two motorcycles and another car insured with them. Four policies in total with about £1500 worth of annual premiums
I was incensed. I politely hinted that it didn't seem a very good way to keep a loyal customer, and if the fee wasn't waived, I wouldn't get angry or upset with her, but would demonstrate my dissatisfaction by taking my business elsewhere at renewal.
After a quick chat with her supervisor, the fee was waived.
If the fee were more in-line with the costs involved (say, a fiver), I probably would have just paid up.
Cheers
DP
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At my final employer overheads were reckoned to be 3 to 4 times wages so £17.50 administration fee probably isn't at all exorbitant.
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