Speeding and extra insurance premiums

ezpz66

Insurance company claiming I owe money for underpaying over the last 2 years. On 08/08/07 I received an SP30 (3 points and fixed penalty for speeding) - when my renewal came up in Nov07 I verbally told the insurers about it but they said weren't interested as it was only 3 points. The following year I didn't mention it because it was the same company. This year they specifically asked so I told them about it and now they are saying I owe them extra money for the previous 2 years insurance as I underpaid. I said I told them but they say I didn't. I have paid the extra £250. Do they have a right to do this? They said I had to pay even if I go to another insurer. I have paid because I do not want to get into trouble. Please can you let me know if they are right to claim this money or should I try and get it back.

cogito

If you told them at the time, there is a chance that your call was recorded. Ask them to review the recording.

withabix

I wouldn't have paid the extra for the previous two years, because the insurer's risk had passed.

That is unless you had made any claims in that period.

Besides that, I rarely stay with the same insurer, as they almost always charge more than someone else at renewal time.

dunstonh

I wouldn't have paid the extra for the previous two years, because the insurer's risk had passed.

The insurer is quite within their rights to ask for payment though as they still provided their service and covered the risk. The fact there was no claim is irrelevant.

In cases like this, its often worth changing insurer to break the link rather than admit to it happening years ago. i.e. new plan set up correctly, no claim made and got away with it.

Whilst there may be a service issue over the communication about the points, there would have been another renewal letter in 2008 and it is your responsibility to check the details are correct. So, they may have messed up but so did you.

It is normal for a single SP30 to have no impact on the premium. Its when you get multiple ones that they tend to start pushing up the cost. What you could do is get an online quote now with and without the points declared and see if the premium changes. If it doesnt, you could argue they have overcharged you.

dacouch

Sounds like it could be Admiral or Elephant

instaunt

cogito wrote: »

If you told them at the time, there is a chance that your call was recorded. Ask them to review the recording.

The terms on most policy docs state that you need to check them over and alert them about any errors. Even if it was stated on the phone, the duty will still have been placed on the policyholder to check the details after. If you check Admiral insurance reviews they seem to be the type of company to make legal threats pretty quickly, but in this case they probably have a leg to stand on and, considering the amount, the cost of fighting is probably outwayed by the cost of giving in. Sad but true. I took someone to court over a £500 bill once and although I won the moral victory and got an 8% internet payment - legal costs are fixed for small claims so you could spend £250 on travelling to court and researching only to get back about £75 from the other side.

dacouch

instaunt wrote: »

The terms on most policy docs state that you need to check them over and alert them about any errors. Even if it was stated on the phone, the duty will still have been placed on the policyholder to check the details after. If you check Admiral insurance reviews they seem to be the type of company to make legal threats pretty quickly, but in this case they probably have a leg to stand on and, considering the amount, the cost of fighting is probably outwayed by the cost of giving in. Sad but true. I took someone to court over a £500 bill once and although I won the moral victory and got an 8% internet payment - legal costs are fixed for small claims so you could spend £250 on travelling to court and researching only to get back about £75 from the other side.

The FSA who regulate the Insurers would regard it as the Insurers problem if the policyholder had informed them of the speeding conviction.

There is an onnus on the policyholder to check their documents each renewal to ensure they are correct but if the Insurer had been informed it is their problem.

This is why Cognito has recommened requesting they listen to the call or you could even request a copy or transcript of the call under the data protection act (This is assuming it can be traced). It is best practice to at the very least make a note of the date / time of the call along with the name of the person you spoke to. In an ideal world it is best to ask them to acknowledge the instruction in writing or confirm it yourself by sending a recorded delivery letter