Direct Line - Ridiculous surcharge for increase in mileage.

kdband

I had reason to check the policy on my wifes car insurance the other day and I noticed that we had insured it for only 8000 miles per annum, but we had already gone over that with 3 months still to go before the end of the year. There are good reasons why we chose 8000 and why we've now exceeded that, but it's not really relevant to the issue.

Anyway I thought we ought to do the right thing, so my wife's just called them, reported this 'change of circumstances' to them asking them to increase it to 12,000 per annum and been quoted an extra £37.83 per month for the final 3 months of this years policy. That's equivalent to £453.96 extra per year and is more than the cost of the policy. She's now blaming me saying we should have waited until renewal time.

In the meantime, I've been on comparethemarket and found more than 20 insurers who will insure us for 12 months for less than £400 in total, including the 12,000 miles and a very low excess.

I've even been on directline.com and they're quoting under £400 themselves for 12 months insurance on the same car starting tomorrow.

How can they justify this ridiculous surcharge and what should I do about it? Is it worthwhile ringing up and complaining to see if they'll discount it at all, or will I be wasting my time. Will they even speak to me as the insurance is in her name?
We go on a driving holiday next week so it's not a good time to be swapping insurers, but I'm definitely thinking of doing that when we get back.

Thanks

Kevin.

newbie007_2

I wouldn't pay them and leave it as it is until next policy. Its an estimated mileage, nothing will come into play, if it does the loss count oversight is not abnormal.

kdband

Well, I would have argued with them, but I think my wifes already agreed to pay it.

newbie007_2

Well thats a lot to be out of pocket for just 3 months. Learn from experience, if this happens again in the future just dont tell them if its just over a few thousand miles as they tend to want over the odds. I have 4000 mileage on my policy, if i had done 5-6k miles then i wouldnt tell them, they are just going to wack on silly money. The only thing, if there is any come back on this if I were to have an accident and mileage is check against mot, even then loss count/oversight of mileage is not a major issue as long im not doubling my mileage etc.

Quentin

kdband wrote: »

to increase it to 12,000 per annum and been quoted an extra £37.83 per month for the final 3 months of this years policy. That's equivalent to £453.96 extra per year and is more than the cost of the policy.

Your maths is a bit out.

This £37.83 "over 3 months" is the full amount to pay for your annual mileage and presumably includes their admin charge for making an alteration to your details mid term - and is £103.49 for the year. (So if the admin charge is £30, the extra monthly charge for the miles is really around £6 etc)

kdband

My maths is fine, you've mis-read what I said :-

"been quoted an extra £37.83 per month for the final 3 months of this years policy"

It really will cost me 3months x £37.83 = £113.49
between now and the time the policy is up for renewal in November.

And that is equivalent to £453.96 extra per year if you extrapolate that over 12 months.

Quentin

You wouldn't have to pay it every month - it's an annual premium divided by 12! (If you told them about it with one month left to run, then you would have been charged the £113 in one go, which doesn't mean you would have paid 12 x £113 in a full year).

And the admin charge element for making the change only gets charged once, not every month.

kdband

Fine, have it your way.

All I know is I currently pay somewhere in the region of £33 per month.

From now until the end of the contract in November I will have to pay around £70 per month just because I'm doing more mileage than I originally anticipated.

If you think that's fair, then maybe I can interest you in allowing me to deposit 5 million Ugandan dollars into your bank account.

Quentin

It isn't "my way" at all - just trying to help you understand.

Had you originally paid in a lump sum for your year's premium, then you would still have to pay them the £113 (maybe a little less as there is presumably some interest element when you pay on the drip).

That is because your annual premium was based on your estimate of 8000 miles when you actually look like doing 50% more. You have "suffered" the admin charge for notifying the change, which you would have been notified about when you first took out the policy.

If the change in your mileage really should have cost £453 over a year, then that is what they would now be wanting from you. But as explained, you are wrongly multiplying your extra monthly charge by 12 to come up with that nonsense figure.

So your rant is flawed!

joanne_d_3

Kdband.....Quentin works in the insurance industry and so he knows what hes taliking about.

What he is saying is true if you really think about it.

Ok , yes , you have to fork out an extra £37 for the next three months but thats kind of like a "one off" thing , you would not have had to do this for the whole 12 months if you had estimated the higher mileage at the start of the policy.

I understand you feel that an extra £37 is quite a rise per month but its only because there is such a short time left on the policy .

kdband

Look I'm not paying an extra £37 for the next 3 months.....

I'm paying an extra £37 per month for the next 3 months.