Direct Line - Ridiculous surcharge for increase in mileage.

Quentin

kdband wrote: »

I notice you chose not to offer an opinion on the question about whether the increase is realistic or the value of keeping an existing customer happy.

What value to you is anyones opinion who doesn't agree with you?

I already tried to show you that the premium increase for the correct mileage is in the region of £6/month. You have brought the extra admin fee on yourself!

kdband

OK look, I'm not trying to be offensive, so I apologise if that's the way I've come over.

Quentin, I appreciate you taking the time to explain, but I'm afraid I didn't fully understand your point until your 3rd post. Maybe that's because I was still angry and didn't take enough time to try and understand what you were saying.

Nevertheless, I still feel cheated.

Although I accept I would have had to pay more, I cannot believe that I would have had to pay £480 (notice I've removed the admin charge) had I taken the correct policy out at the start of the year.

olly300

kdband wrote: »

Although I accept I would have had to pay more, I cannot believe that I would have had to pay £480 (notice I've removed the admin charge) had I taken the correct policy out at the start of the year.

Premium prices don't stay the same through out the year so you are right you probably would have got a cheaper price.

newbie007_2

You did take the correct policy with mileage to start with, however since you told them you will likey to increase to 12k a year they increase your payment to recover the real cost of 12k annual mileage. This is how insurance works when u make changes which increase the risk profile. I encountered this years ago through a relative, back then it was £10 admin charge. As regards to 50%+ in mileage could result in 50%+ in premium, it doesnt correlate like that. I guess you'll live and learn, an extra few 000k miles on usage, then i wouldnt bother telling them. Each to their own.

dunstonh

The 8000 mile estimate was genuine (if anything generous) at the time we took the policy out. Circumstances have changed.

It doesnt matter. The fact is that the risk to the insurer increased and that risk covers the whole year.

I could have kept my mouth shut until renewal time and nobody would have cared. I'll make sure I do this next time.

Unless you had a claim and they then either reduce the payout, leaving your liable for the difference, or refuse to pay out or refuse to offer cover in future meaning you would have to declare that for the rest of your life causing increased premiums and some refusals.

Are you telling me that £113 is a realistic increase in premium if I change my mileage in the way I've described?

Take the £30 admin charge off and the increase is only £83. Your annual premium was £400 on 8000 miles. The milieage increase of 50% added 20% to the premium.

The reason low mileage drivers get discounts is that they are less risk from accidents. You no longer have the same level of risk so you are not benefiting from the same level of discount. So, yes it it fair.

Forgive me for thinking I might get a sympathetic ear in a money-saving forum.

Your logic was flawed and your reasoning wrong. There are plenty of things we can have a dig about with insurance companies but that doesnt mean we should agree with you when you are wrong.

kdband

dunstonh wrote: »

Unless you had a claim and they then either reduce the payout, leaving your liable for the difference, or refuse to pay out or refuse to offer cover in future meaning you would have to declare that for the rest of your life causing increased premiums and some refusals.

Those are pretty scary words.

So keeping in mind that I have paid up after noticing my mistake so the question has become theoretical, I'd be interested to know how realistic that is.
Supposing I hadn't noticed my mistake and did have to make a claim.
How likely is it that they would refuse to pay out if I had an accident and had excedeed my predicted mileage.

raskazz

newbie007 wrote: »

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.

"Lost count" would hardly hold water, would it, when their records will confirm that the OP did, in fact, call to advise them to obtain a quote for an increased mileage?

raskazz

Quentin wrote: »

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)

Exactly, when mileage is amended the annual increase is due. Other reasons for the increase will be base rate increases since inception and any applicable admin fees.

newbie007_2

raskazz wrote: »

"Lost count" would hardly hold water, would it, when their records will confirm that the OP did, in fact, call to advise them to obtain a quote for an increased mileage?

I was referring in regards to.... if the OP hadn't made the call. Maybe someone working in insurance can tell us instead of an assumption that it wouldnt hold water? Perhaps quentin can shed some light to when the estimated mileage had exceeded, what if any consequences are likely?

mikey72

newbie007 wrote: »

I was referring in regards to.... if the OP hadn't made the call. Maybe someone working in insurance can tell us instead of an assumption that it wouldnt hold water? Perhaps quentin can shed some light to when the estimated mileage had exceeded, what if any consequences are likely?

I've had policies where I declare the milage on the car at the start, and the wording is that the policy will be voided if I go over.
Others have been an estimated milage, and state I should contact them if I exceed it. Then I suppose they will look at the MOT if I make a claim, and check the milage. These haven't had a specific clause if I exceed the estimate though.