Direct Line - Ridiculous surcharge for increase in mileage.

dunstonh

The mileage issue will depend on intent. Someone who does 20,000 miles a year every year but insures for 6,000 miles a year would almost certainly be classed as "intentional" and could find they are voided. Someone that does 6,000 a year every year but exceeds it a little one year will almost certainly away with it. In between that you would likely see the claim reduced by the amount of extra premiums that should have been paid. The insurer would possibly refuse to offer a renewal which would see you having to declare that with other companies and that would see a premium rise or a complete refusal to offer cover with some companies.

Steve1981

kdband wrote: »

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.

Key points here, You are doing a higher mileage than what you told then, as such you are a higher risk (more time on road more chance statistically that something 'may' occur)

They are rerating the remainder of the policy based on the higher mileage inc the admin fee - the admin fee is a true reflection of the costs borne by the company when you make a change

You(or your wife) would have been made aware of this fee when the pol was taken - it would also be noted in docs.

you have increased your mileage substancially 50% so I cant think of anything fairer than the current situation, higher mileage higher risk.

The fact that you have found a host of other insurers cheaper is of no relevance, unless you want to pay the admin fee when cancelling (which is higher than the admin fee).

to me it sounds fair and not excessive for the change in risk

Mr_Man_Full_of_Love

How exactly does this work? I've been with Direct Line for over 20 years and there's never been any mention of annual mileage. Do you have to give documentary evidence of the number of miles you've done at the start each year?

Quentin

Check your policy schedule and see if mileage is mentioned there.

It is up to the policyholder to make sure all the info the insurer has regarding the policy is correct. So although you don't need to make an annual declaration, you would need to inform them if your annual mileage changes from that shown on the schedule (if estimated annual mileage is shown there).

Steve1981

Mr_Man_Full_of_Love wrote: »

How exactly does this work? I've been with Direct Line for over 20 years and there's never been any mention of annual mileage. Do you have to give documentary evidence of the number of miles you've done at the start each year?

no need,policies that have been with DL for that long work on an open mileage policy, basically mileage is a non rating factor

kdband

Steve1981 wrote: »

no need,policies that have been with DL for that long work on an open mileage policy, basically mileage is a non rating factor

Not true. My wife is with Direct Line. It's them who are stinging us for an extra £120.

Chris55_2

Sorry to crash the thread, but I'd just like to put the "man in the street" view, as there were some brokers arguing very forcibly that it was wrong to be angry about this.

The point is that, say you report the mileage to the Insurance company just a day before the end of the policy, then, you say, the full amount £113 would be payable. But the Insurance company only has the risk for one day. There have been no claims to date - so they are at almost no risk at all. The insurance company are charging money for something that didn't happen in the past. If you were to ring up to get cover for just one day then they'd be charging you a much smaller fee, rather than them back dating it to give you cover you didn't require. Unless this car is really a time machine and can go back and have an accident 3 months ago?

dunstonh

The point is that, say you report the mileage to the Insurance company just a day before the end of the policy, then, you say, the full amount £113 would be payable. But the Insurance company only has the risk for one day.

No they havent. They have had the risk over the whole 12 months. You just havent paid for it.

There have been no claims to date - so they are at almost no risk at all.

There could have been a claim though.

The insurance company are charging money for something that didn't happen in the past.

Only because of your failure to notify them earlier of the increase.

Unless this car is really a time machine and can go back and have an accident 3 months ago?

They are costing the risk on the basis of what you tell them. If you provide incorrect information which you later correct, it should be applied to the whole premium to reflect the risk being taken over the whole period.

Car insurance is not pay as you go. If you did it your way then everyone would just say they do 3000 miles a year and then wait until the end of the year to say they have done 12000 and expect to only pay for one day extra risk. That clearly is not right and wouldnt work.

Chris55_2

I can quite see that if you make a claim and you have not disclosed everything then the insurers have every right to be angry and dispute any payment. But yesterday's insurance is completely worthless. There is 100% no risk now that I died last week, nor that I had a car accident - but the company want paying for a risk that did not cost them anything at all? Surely that's money for nothing?

raskazz

Chris55 wrote: »

I can quite see that if you make a claim and you have not disclosed everything then the insurers have every right to be angry and dispute any payment. But yesterday's insurance is completely worthless. There is 100% no risk now that I died last week, nor that I had a car accident - but the company want paying for a risk that did not cost them anything at all? Surely that's money for nothing?

Your argument makes no sense. By your rationale, insurers would refund your premium at the end of the year if you didn't make any claims. Which is nonsensical.