Car Insurance - Change of Address Issues

Stick_of_Rock

So, moved house with 2 months to go on my policy, called to change address, informed that admin charge will be £50(yikes) but also i will need to pay them a further £120 on top of my monthly payments because I'm now in a high risk area(I'm about 500yrds away from old house but different postcode) This means my premium has effectively doubled, indeed a re quote with the broker confirms this(£500 to £1000)

So, please help, what are my options. I've called for other quotes and I get back down to £500 again, so it seems really that I'm been taken for a ride.

I presume I'm in for a massive payout if I cancel(broker cant tell me a price other than another £50 admin charge, cheers again for that) Can I just take out another policy and let the existing one sit for 2 months? That would work out cheaper but presumably be illegal?

Other than that I have no idea, it really seems like a scam where if you change address they can charge you whatever they like and you have to pay up! Help!

forgotmyname

Options are pay up or cancel and go elsewhere.

But i assume the £5 charge for change of address is still payable. Then another charge of £50 to cancel + time on cover and other costs.

Sadly you chose to move mid policy they didnt force you to move. Its easy money for them. Not a scam but taking advantage maybe.

Why would you take out another policy and pay for 2? Any no claims bonus? You cannot use that if its still attached this policy.

Either way the current policy needs to be paid in full or cancelled and the charges paid.

Maybe an issue that you moved 2 months ago and only just told them?

vaio

Stick_of_Rock wrote: »

.......it really seems like a scam where if you change address they can charge you whatever they like and you have to pay up! Help!

This is where dummy quotes are your friend....if the premium increase is not in line with what they would charge a new customer then they are unfairly taking advantage of your captive punter status and a complaint will likely bear fruit (and if it doesn't then a referral to the FOS almost certainly will)

Stick_of_Rock

Nope, moved house and still have 2 months left before my renewal date, not moved two months ago.

Ah, I hadn't considered the no claims discount thanks. The 2 policies option would have worked out cheaper(than cancelling/paying extortionate price)

We rent and sometimes you have no control over moving so I guess it's a case of having to pay up front rather than monthly to avoid being ripped off.(Having said that I guess they would just demand money anyway!)

Just_Some_Guy

You can't have two policies running concurrently. You either have to grin and bear it, or you have to cancel the LV policy and buy a new one. Admin fees suck but people seem to prefer cheaper policies with admin fees over more expensive policies without so they are here to stay.

If you have had a claim with LV so far this policy year then LV are entitled to the rest of the year's premium when you cancel (i.e., don't bother cancelling).

If you haven't had a claim, then you won't have earned another year's NCD (you only get credit for full years!), so if you have less than say 3 years NCD it might actually work out cheaper in the long run to keep the LV policy so you get another year's NCD in two months. You'd have to sit down and do the math though.

(also, if you pay annually and move house to a riskier area halfway through the year, they WILL demand an extra from you when you move!)

dacouch

vaio wrote: »

This is where dummy quotes are your friend....if the premium increase is not in line with what they would charge a new customer then they are unfairly taking advantage of your captive punter status and a complaint will likely bear fruit (and if it doesn't then a referral to the FOS almost certainly will)

The OP is using a broker so would need to make sure the dummy quote is with the same Insurer.