£400 extra for paying monthly?!!?

leftatthelights

Hi,

I have had a car insurance quote online through Admiral, fully comp with no NCB. The quote was a very reasonable £679 which I was very happy to accept however, when I rang to arrange the monthly payments I was then told that they had to re-calculate my quote to account for the monthly payments and my new quote is now £1098!!

What the hell is going on?? How can they justify adding just over £400 for the "priviledge" of paying by direct debit??

Can anyone explain this to me or is this common practice? Needless to say, I very quickly told the salesperson where to go once I was told the new amount! I dont mind paying a little extra for monthly but not £400 extra!!:mad::mad:

Ebonydeluxe

I was told the exact same thing. Their answer was that you get a discount for paying all in one go, but if you pay monthly you lose this discount and they also charge a credit charge.

Stupid I know but they are all crooks and I wish insurance was optional because they will do anything not to pay up when it counts, like they are doing to me now.

Ebony

vaporate

1k a month? lol

is it a limo?

leftatthelights

Ebonydeluxe wrote: »

I was told the exact same thing. Their answer was that you get a discount for paying all in one go, but if you pay monthly you lose this discount and they also charge a credit charge.

Stupid I know but they are all crooks and I wish insurance was optional because they will do anything not to pay up when it counts, like they are doing to me now.

Ebony

It is absolutly criminal what they are doing!! I mean, when I rang they insisted that they had to go through everything I had already input online but at an EXTREMELY slow pace to keep me on the phone for longer!! Then they hit me with the massive £400 price hike!
I wouldnt mind but you key the numbers you require at the start to get put through to the monthly payments section only to hear the "shocked" sound in their voice when you just happen to mention the fact that you want to pay monthly!!! :mad::mad:

Quote

Ebonydeluxe wrote: »

I wish insurance was optional...

Would you pay for it if it was?

Think carefully before you answer.

Ebonydeluxe

Quote wrote: »

Would you pay for it if it was?

Think carefully before you answer.

I think that was the point I was making. I wouldn't pay for it. It works fine if you don't have any accidents and they are collecting your money.

I know too many people that have had problems with insurance companies, various reasons. I think the rules which they work under need to be tightened up. Such as the length of time they take to deal with things, the communication, etc.

What's the point if someone hits you in the rear and denies liability and/or doesn't have insurance and regardless of the rules specified in the highway code you are deemed liable for the actions of another.

The hassle you have to go through just to make a claim is ridiculous. I wish they would put this much effort into checking whether you are sure about parting with your money.

You have have an accident you insurance could double, you don't have an accident you insurance can go up slightly or is reduced by £10-20. Not fair if you ask me.

However I am bias because of these bad experiences, so I am giving a one sided view.

pedro123456

Well I cant get my breath, where are all the insurance bods who try and justify this type of action by the Insurance Companies? :rotfl:

StephenMarsh

pedro123456 wrote: »

Well I cant get my breath, where are all the insurance bods who try and justify this type of action by the Insurance Companies? :rotfl:

there isnt any justification for £400 for paying monthly. You should expect to pay more on a direct debit but no £400 is pretty rediculous on that kind of premium.

As for the attitude on having insurance well thats a whole different matter not wanting to insure yourself for the possibility of hitting someone and seriously injuring them writing there car off or worse is pretty low in my opinion and its this kind of attitude to insurance which is creating so many problems within the industry.

Emsky*

Hi Leftatthelights,

I live in a high risk area & I've only been driving 2 years & I'm under 21. I was quoted £1300 with Elephant, but when I asked to pay monthly for 12 months it would cost me over £2000, so I had to take the 10 month bonus accelerator for just under £1900, still alot seen as though my friends the same age & lives only down the road & her's is £400!"
The company told me they add VAT & APR.....well thats how they tried to justify robbing me!"

mikey72

StephenMarsh wrote: »

there isnt any justification for £400 for paying monthly. You should expect to pay more on a direct debit but no £400 is pretty rediculous on that kind of premium.

As for the attitude on having insurance well thats a whole different matter not wanting to insure yourself for the possibility of hitting someone and seriously injuring them writing there car off or worse is pretty low in my opinion and its this kind of attitude to insurance which is creating so many problems within the industry.

I rather think it's the attitude of the insurance companies to it's customers which is creating so many problems within the industry.

Charging a massive premium, then charging again for the priviledge of paying monthly. As most people "in the know" have stated on here, (particuarly when a poster is complaining about excessive charges to stop mid term on an annual policy paid monthly), it's apparently a finance agreement.
So from what's been said the insurance company have been paid in full at the outset, probably with a bonus for referring the customer to the finance company.
This sort of policy makes it cheaper to get a bank loan to pay the premium, then pay back the bank. But in reality they target the type of customer who probably won't qualify for a bank loan due to age and earings.
That's fair is it?

StephenMarsh

mikey72 wrote: »

I rather think it's the attitude of the insurance companies to it's customers which is creating so many problems within the industry.

Charging a massive premium, then charging again for the priviledge of paying monthly. As most people "in the know" have stated on here, (particuarly when a poster is complaining about excessive charges to stop mid term on an annual policy paid monthly), it's apparently a finance agreement.
So from what's been said the insurance company have been paid in full at the outset, probably with a bonus for referring the customer to the finance company.
This sort of policy makes it cheaper to get a bank loan to pay the premium, then pay back the bank. But in reality they target the type of customer who probably won't qualify for a bank loan due to age and earings.
That's fair is it?

I dont condone an increase of £400 for paying monthly im in total agreement its excessive to the point of rediculous for a premium of £700 I would expect to see around a £70 increase for monthly payments. So no it isnt fair !!

On the same token I dont condone attitudes of I wouldnt have insurance if I didnt have to, because there are too many out there that take this kind of attitude even when it is compulsary. Is it fair that uninsured drivers are costing the average moterist on there premiums ?