Am I being fleeced for upgrading to business use with Hastings?

Kua

My policy began around February time. I've just asked to be upgraded for business use. So this will only last for a few months of my policy.

I've been charged £140 (including a £35 admin fee). Sounds a bit steep to me...

What's more work won't pay for it. I'm told that this is taken into account when they pay me 45p a mile for usage...

Are Hastings and my employers being fair? I guess there is diddly squat I can do about it.

mikey72

Yes.
All mine have been about the same, with or without. Mid term changes are costly.

Dangermac

Kua wrote: »

My policy began around February time. I've just asked to be upgraded for business use. So this will only last for a few months of my policy.

I've been charged £140 (including a £35 admin fee). Sounds a bit steep to me...

What's more work won't pay for it. I'm told that this is taken into account when they pay me 45p a mile for usage...

Are Hastings and my employers being fair? I guess there is diddly squat I can do about it.

That sounds extremely expensive for 4 months.

If it was me I would:

- Run a dummy quote through, based on 2012 renewal risk information (hopefully this will give a similar premium to what you paid)

- Run a dummy quote though, including business use

That way you can see if they are being fair, or having you over a barrel. The additional premium should be pro-rata. £140 for 4 months is a lot.

- If their annual increase of circa £500 doesnt marry up with the dummy quotes, call them and challenge them to justify it.

I would recommend that you change your name/DOB for the purposes of the dummy quotes.

DM

InsideInsurance

The problem is they dont need to "justify it". They are a commercial operation and so can offer a price and it is up to you if you accept it or not. If you choose to cancel and go elsewhere then you already agreed to the cancellation charges back in the beginning.

What class of business use are you adding to your policy? The admin fee sounds normal but the premium adjustment sounds high unless you are also massively increasing your estimated annual mileage at the same time.

I have always included Class 1 business use "just in case" and with most insurers it is almost no difference to SDPC (my last few insurers it has been no difference)

verityboo

Its difficult to comment on the £100 increase for 4 months (plus admin charge) without knowing a bit more info regarding your insurance. Was your annual premium before £300 or £3000?, did you also increase the estimated annual mileage as well?

vaio

InsideInsurance wrote: »

The problem is they dont need to "justify it". They are a commercial operation and so can offer a price and it is up to you if you accept it or not. ......

Yep and if they would have charged £300 extra for business cover if it had been included when the policy was taken out that's fair enough but if they are taking advantage of the fact that you are an existing customer by charging an inflated figure then I'd say that breeches the FOS/FSA "treat the punter fairly" rules and is worthy of a complaint.

For reference, I always get business class 1 cover and the cost is nominal (£20 maybe on a total policy cost in the £200-300 range)

Kua

verityboo wrote: »

Its difficult to comment on the £100 increase for 4 months (plus admin charge) without knowing a bit more info regarding your insurance. Was your annual premium before £300 or £3000?, did you also increase the estimated annual mileage as well?

Just over £300. And yes but from 6,000 to 8,000 only.

Kua

InsideInsurance wrote: »

The problem is they dont need to "justify it". They are a commercial operation and so can offer a price and it is up to you if you accept it or not. If you choose to cancel and go elsewhere then you already agreed to the cancellation charges back in the beginning.

What class of business use are you adding to your policy? The admin fee sounds normal but the premium adjustment sounds high unless you are also massively increasing your estimated annual mileage at the same time.

I have always included Class 1 business use "just in case" and with most insurers it is almost no difference to SDPC (my last few insurers it has been no difference)

I didn't specify the class of business use. So presumably, the default, if there is one.