Car Insurance - changing vehicle

ifm

I am thinking of changing my car. In calculating the possible costs of making this decision, I phoned my insurance company in advance to see what the likely insurance cost would be to buy the car I wanted (just a Mondeo). They told me the underwriter of my policy would not accept a change of vehicle; I would need to start a new policy with a new underwriter part funded by the remaining proportion of the existing premium on my current policy. The new policy would be for 12 months.

I can find no reference to this provision in my insurance documents. I have never heard of this stipulation before in over 40 years of driving and having changed vehicles more times that I can remember. The man on the phone said it didn't just apply to me, it was the underwriter.

The more I think about it the more flabbergasted I am. It just reeks of a scam. The price they gave was huge, but of course there's no incentive to offer a competitive quote.

In addition, I am currently slowly reducing my risk profile from having hit a deer in Epping Forest not long ago, and just renewing now locks me into paying at my current inflated risk rate for another 12 months.

Is this now common practice and I simply haven't encountered it before? Is this even legal? What can I do?

Tigsteroonie

Is it common? Well, my insurer didn't do it yesterday - they've simply changed the car on my policy which did result in an increase in premiums (newer car, bigger engine) but my policy still has the same 10 months to run - they didn't start a new policy year.

rs65

I can understand it if you were buying something high performance that the insurer may not cover but not for a Mondeo.

I have always just changed vehicle on existing policy and never had this issue.

Which insurer and broker is it?

poet123

My son changed his car last week and they just changed the details and took more money (even though the car was the same ins group and actually smaller, they said the risk for that car was assessed higher) I have always just changed the details. May be specific to your policy, but if so it should be in the docs.

ifm

Its Lloyd's bank insurance.

Quentin

Not a lot you can do (they aren't the insurer, as they have told you - in fact they are really bisl).

It's always best to do as you have done and make sure your insurer will accept any change of car, as they are not bound to, and as you have discovered, changing can mean having to take out a new policy, extra expense, plus you lose any ncd earned for the part year you have been covered if you do cancel.

forgotmyname

I would leave the change until the policy expires. I wouldnt give them a penny extra.

Stupid term not being able to swap your car. Stick a complaint in also.

Pincher

It's all down to how on the level the insurance company is.

I started a policy on a 2006 car in January 2013, annual premium £450. Got a good deal on a 13 Reg car, same model, but two insurance groups lower (1.3L petrol instead of 1.5L diesel). I got an online quote from the same company, and the annual premium is £350 for like for like options.

Rang up to do the switch, and they are happy to just change the car on the existing policy for £20 admin, but the premium is unchanged. Obviously I queried this, saying that I was expecting about £70 pro rata refund on the remaining 9 months. They just said they can do nothing except to pass me to Customer Loyalty. Customer Loyalty says they cannot match the online quote, as it's a DIFFERENT SYSTEM. If I start an online £350 annual policy on the new car, they will cancel the old policy and give me a pro rata refund, WITHOUT any penalties. I have now received the pro-rata refund.

The new policy means the next NCD is three months later than it would have been, but I have saved myself about £100 in an annual premium. If I just changed the car details, and ride out the remainder 9 months, there would be no refund.

The system is designed so that you cannot use a cheaper online quote to force the call centre staff into offering you better terms.
Fortunately, the Customer Loyalty Dept allows you to circumvent it, albeit in a long-winded way.

Quentin

forgotmyname wrote: »

Stupid term not being able to swap your car. Stick a complaint in also.

No insurer will guarantee to provide you cover should you decide you want a different car midway through the policy year. That's why you should check with the insurer prior to buying any new car that they will accept it.

A "complaint" is a waste of time as there are no grounds. But a "grumble" in the right ear might help get a reduction in the cancellation charges. Though you are dealing with bisl!

dacouch

It's not that unusual for Budget (BISL) who administer the Lloyds Car Insurance to insist on a new policy when you change car.