Domestic and General policy payout problem

ascint

I have a policy with them on several items including my Beco fridge which has just failed. This policy was renewed 2 months ago I pay it monthly.
Being an extended warranty they have decided that repairing the fridge is impossible as the failed part is integral to the fridge, and have offered the latest model as replacement.
But they want a £45 delivery fee plus £90 to cover the remaining 10 months of the policy.
Not that pleased with a problematical fridge, I've found several from other manufacturers that meet my needs and none cost much more than the fees D&G are requesting.
Do I have any argument against the fees, especially having to pay off the remaining policy.

shaun_from_Africa

Paying off the remaining premiums is normal with all warranties and insurance policies and you will have to pay this.
The cover provided was based on a set premium, and it's irrespective whether this premium was paid in one lump sum or spread over 12 monthly payments.

As to the delivery charge.This is stated as an exclusion in the policy documentation.

The plan will not pay for:
- delivery or installation charges where a replacement product is provided.

ascint

why is it 'normal'
surely I have a contract to pay by monthly installments and pay a premium to so do.
so why is it normal

wealdroam

ascint wrote: »

why is it 'normal'
surely I have a contract to pay by monthly installments and pay a premium to so do.
so why is it normal

Because you have an agreement to pay a yearly premium.
Their terms allow for this payment to be spread over equal monthly installments.

If you had not made a claim, then cancelling the policy would attract a 'small' cancellation charge, but because you have made a claim you have to pay the rest of the annual premium that you still owe.

This is the same with most insurances... houshold, car, etc.

shaun_from_Africa

so why is it normal

Because the policy had a premium of about £110 and this premium was calculated to cover the cost of a repair or replacement of the freezer should it require it.
As it stands, yours need replacing earlier rather than later in the life of the policy, but the premium remains the same and this premium need to be paid irrespective of whether it was a single payment or spread over 12 monthly payments.

My car insurance costs me about £260 per year (or about 70p per day), and if my car gets written off 1 day after taking out the policy, do you think it's fair for me to think that I should have a refund of £259.30 as cover was only in place for 1 day?

The extra that you pay for having monthly instalments is to cover the adminstration costs incurred in processing these payments.

arcon5

This is a great example as to why warranties and extended warranties rarely offer a great deal of value (unless included free of charge with the sale as usually are).

ascint

Thanks everyone for the great replies

antrobus

ascint wrote: »

....But they want a £45 delivery fee plus £90 to cover the remaining 10 months of the policy....., I've found several from other manufacturers that meet my needs and none cost much more than the fees D&G are requesting...

I'm puzzled, because D&Gs website quotes cover for fridge freezers 'from' £24 a year. So if the fridge itself cost less than £135, !!!!!! is this £108 annual policy cost?

ascint wrote: »

..Do I have any argument against the fees, especially having to pay off the remaining policy.

Were you really paying £108 pa to cover a £135 fridge?

shaun_from_Africa

I think that you've misread the original post antrobus.

The only reference to £135 that I can see is this

they want a £45 delivery fee plus £90

£135 made up of the delivery charge for the new fridge and £90 for the remaining premiums.

I'm assuming that due to the cost of the policy (about £110 per year) that it's actually a fridge/freezer that the OP has (although my assumption may be wrong). as the D&G quote for a £550 to £600 unit is around this price.

ascint

correct,the policy is for a fridge freezer.
we now have a separate freezer,so are considering a cheaper fridge,instead of paying the combined demand