Car Insurance : Mid-Term-Adjustment Question

JonTTD

I recently got myself a speeding conviction and 3 points onto my license (first conviction in 8 years driving)

I phoned the insurance company, and they have increased my premium from £30 a month to £42! (over the year £144 increase & a £200 increase to my excess)

I checked on the internet and can get better&cheaper cover with a different insurer.

Am I entitled to turn down this increased premium offer from my existing insurer? And therefore the agreement would be cancelled through mutual consent? (Either through FSA rules, or otherwise)

Seems a little off that 1 conviction adds 33% to my premium and I can't do anything about it!

dunstonh

Am I entitled to turn down this increased premium offer from my existing insurer? And therefore the agreement would be cancelled through mutual consent? (Either through FSA rules, or otherwise)

You can request cancellation. However, that would involve an admin fee, having to pay premiums to the next cancellation point (which could be a few months away) and loss of the current years no claim discount (if you are still accruing years).

Typically, changing mid term is not realistic for most people.

Seems a little off that 1 conviction adds 33% to my premium and I can't do anything about it!

You could have avoided getting the conviction in the first place. Your existing company probably prices itself on low risk people. You have moved up the risk scale and they may no longer be competitive in that area.

vaio

Is there actually a requirement in the policy terms & conditions for you to report speeding convictions mid term?

I'd always assumed they only got reported at renewal time.

If there is a requirement to report the cynic in me says that they have you over a barrel for mid term adjustments so milk it for everything they can.

Also, given how many people have managed to pick up a speeding conviction I’d be tempted to run some dummy quotes and see if they would have applied the same loading if you were a prospective customer rather than an existing one.

adamc260

vaio wrote: »

Is there actually a requirement in the policy terms & conditions for you to report speeding convictions mid term?

I'd always assumed they only got reported at renewal time.

If there is a requirement to report the cynic in me says that they have you over a barrel for mid term adjustments so milk it for everything they can.

Also, given how many people have managed to pick up a speeding conviction I’d be tempted to run some dummy quotes and see if they would have applied the same loading if you were a prospective customer rather than an existing one.

Yeh it's generally at renewal

Check in your policy booklet to OP, it's usually within the first few pages saying things like

"Please tell us before"
"Please tell us immediately"
"Please tell us when you renew your insurance"

Using admiral's policy for example

"Please tell us when you renew your insurance
of any motoring convictions or fixed penalties you or any driver on your policy had during the year, or any pending prosecutions"

Mr_K

To be on the safe side always inform them immediately of any conviction/change in circumstances, don't wait for renewal. They'd love to find any excuse not to pay out if you need to claim.

Bit surprised at the level of increase for the OP. I didn't get any increase a few years ago when I declared 3 points. Shop around when in comes to renewal. Many insurers disregard the first 3 points as it's so common.

dunstonh

Bit surprised at the level of increase for the OP.

Yes. Most dont increase or barely increase with just 3 points. Thats why I thought it must be one that prices itself competitively on the very low risk only. Or they are in their 20s still.

Or possibly, that the notification includes an admin fee as well as an increase on premium and the OP's pro-rata calculation is incorrect. We dont know the actual increase in premium for the term remaining. Just what the OP has assumed it may be if the increase was factored over 12 months. So, it could be a £30 admin fee and a £18 increase in premium with 4 months remaining on the policy. That may be £12 for the remaining months of this policy year but it wont be £12 on a full year policy term.