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Change of address and no longer student - £400 extra for 6 months!
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MercilessKiller
Posts: 7,143 Forumite
Hey guys.
In summary:
1 year policy: £1200
Occupation: Student
Location: Stafford
Months left: 6
Broker: Zurich THROUGH Endsleigh
On saturday I move to Leeds and start a full time job on Monday. Graduate in July.
I called the insurance company who say I now owe just over £400 for the remaining 6 months.
I have been told that I was on a special student scheme policy as such and thus changing my occupation raises the cost so much....
I've also been told however that schemes like these should apply the cost to the full term regardless of occupation at the end of the term. In other words, I should be able to keep myself as a student till the end of the policy, or change my occupation without extra cost....
So who's right? Should I/could I ring up and make a big fuss to possible reduce the cost?
The example I was given was:
Its a similar argument to when its your birthday. When you reach 22 you're entitled to a lower rate but they DON'T give it until renewal. Likewise any discount SHOULD be until the next renewal.
Thanks
In summary:
1 year policy: £1200
Occupation: Student
Location: Stafford
Months left: 6
Broker: Zurich THROUGH Endsleigh
On saturday I move to Leeds and start a full time job on Monday. Graduate in July.
I called the insurance company who say I now owe just over £400 for the remaining 6 months.
I have been told that I was on a special student scheme policy as such and thus changing my occupation raises the cost so much....
I've also been told however that schemes like these should apply the cost to the full term regardless of occupation at the end of the term. In other words, I should be able to keep myself as a student till the end of the policy, or change my occupation without extra cost....
So who's right? Should I/could I ring up and make a big fuss to possible reduce the cost?
The example I was given was:
Its a similar argument to when its your birthday. When you reach 22 you're entitled to a lower rate but they DON'T give it until renewal. Likewise any discount SHOULD be until the next renewal.
Thanks
[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]
- Bob Dole, Republican presidential candidate[/FONT]
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Comments
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IMO the major element of the increase in premium will be the increased risk associated with the area in which you will be living. Leeds is likely to be a much riskier area than Stafford.
The occupation may also be having an effect. The fact that they may discount rates for students does not prevent the premium altering in response to changes in material facts.
The example you cite is not appropriate. Sadly, ageing is inevitable - the premium ratings already take into account the fact that everybody gets 1 year older on their birthday. A change of occupation is not inevitable and the risk of the new occupation will also vary widely.0 -
To reply to your first point, though you say the major element is the move, the lady I spoke to from the insurance company was shocked by the 100% rise and said "The reason its such an increase its because you were on a student type policy"...
I would expect £200 or something similar for area move.. but £200 for not being a student anymore?
It was someone from another independant insurnace company who advised me that I could make some sort of fuss...
Surely a student policy, it is inevitable that I will graduate during the policy?[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
Again, I'm fairly sure that the majority of the rise is due to the change in area. I happen to work as a motor insurance underwriter and I have just checked my insurer's postcode file. Every LS postcode is rated as a higher risk than ST16 which I believe is Stafford, and a large proportion are a substantially higher risk.
I believe that the person on the phone was not a particularly clued-up member of staff and simply gave you an answer to fob you off.
It is not inevitable that a student will graduate during the course of the policy - indeed, it will be impossible for those who take out the policy before the end of their second year!0 -
Wow really counts for a 100% price increase? ST16 to LS7
Note when moving from LS17 to ST16 last year, they gave me £25 when there was several months remaining too.[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
MercilessKiller wrote: »Wow really counts for a 100% price increase? ST16 to LS7
It really could as LS7 is one of the highest rating areas in Leeds. According to our rates it could easily be a 100% increase after the loading due to increased risk plus rate inflation since the start of the policy plus admin fees.MercilessKiller wrote: »Note when moving from LS17 to ST16 last year, they gave me £25 when there was several months remaining too.
That fits. LS17 lies between ST16 and LS7 in terms of risk, but is much closer in risk to ST16.0 -
Merciless...Zurich are the Insurance Company and Endseigh are the broker, Endsleigh happen to be owned by Zurich0
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Raskazz, can I ask what the very highest rating postcode in Leeds is? Just out of interest really... I've lived in LS2, LS6, LS7 and LS17 and I'd guess LS2 would be the very highest! I've never had a car registered with me so not sure how it would affect premiums.0
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Oh and Merciless - you'll love living in LS7, it's fantastic! 0
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GrammarGirl wrote: »Raskazz, can I ask what the very highest rating postcode in Leeds is? Just out of interest really... I've lived in LS2, LS6, LS7 and LS17 and I'd guess LS2 would be the very highest! I've never had a car registered with me so not sure how it would affect premiums.
LS7, LS8 and LS9 are all at pretty much at the same level as the worst LS postcodes (only according to my employer's experience, however).0 -
GrammarGirl wrote: »Oh and Merciless - you'll love living in LS7, it's fantastic!
Been here a few days now and it seems pretty great! The tennis club is ace too 
Though need to meet lots of new people.. damn moving around![FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0
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