Has the world gone mad. Adrian Flux car insurance problem

MarComMan

I have just got off the phone from Adrian Flux having originally called them to ask a question regarding my renewal in mid June. Guess what, for the first time in a long time I had actually got a good renewal price. I have a '97 classic mini cooper insured on agreed value and 6k miles limit. They had requested I supply new photos as part of the agreed value agreement and I was querying this as I had done so 2 years ago on first taking the policy. When I explained that I was made redundant and am between jobs she asked to put me on hold. When the advisor came back on a few moments later she explained that the renewal price would jump to over £1000 from the £292 they had originally quoted. I should explain that I am a degree qualified chartered marketer - yes unemployed but still qualified for the role - an average type, wife, two kids, hardly the Fast and the Furious.

Now I am going to have to go through price comparison again if I can get a reasonable price at all. I am completely flummoxed by this. Effectively I lose the use of my beloved old mini in 2 weeks. How long is the insurance industry going to continue to hold us to ransom?

Anyone else experienced the same?

Not happy. :mad:

InsideInsurance

MarComMan wrote: »

How long is the insurance industry going to continue to hold us to ransom?

Anyone else experienced the same?

Looking at one broker for one type of policy isnt really a whole industry holding you to ransom. Try shopping around a little more beforehand - Adrian Flux have always been very expensive for me, they quoted £3,000 for my new car where as Admiral quoted £700 (not agreed value for either)

Ultimately insurers work on a combination of technical pricing which is pure statistics driven for mass market products and commercial consideration. It can be a combination of these two that are pushing up the premiums. Unemployed statistically are higher risk including fraud risks and it could well be that Flux's insurers simply dont see the unemployed in their target market and so load premiums to drive customers away.

How important is fixed value for you? Unless you live in a very bad area or have a terrible claims/ traffic offenses history then you would certainly get a cheaper market value policy.

dunstonh

How long is the insurance industry going to continue to hold us to ransom?

How are you being held to ransom by the whole industry on the basis of one quote?

Statistically, unemployed people put in more claims. Pricing is based on risk. You are now in a pot of people that are higher risk. Different insurers will price risks differently depending on their business model and target markets.

Quentin

It seems you didn't inform them when you became unemployed (your policy will require you to inform your insurer of changes to occupation etc)

If this was some time ago, they may be wanting to recover extra unpaid premium too.

MarComMan

Prior to my call to Adrian Flux, I was not shopping around. I was happy with what they originally offered as a renewal price and had I not been enquiring about the agreed value photos I would not have called and accepted the renewal by default.

With regard to not informing them about being unemployed, I was not aware that I would need to do this. I always thought changing occupation was going from doctor to lawyer or banker to HGV driver for example, not changing from employed marketer to unemployed marketer. Just because I cannot find work does not mean that I have changed my occupation. I still fail to see how this is relevant to such a hike in premium. I think a little more transparency in how premiums are calculated would not go amiss.

cajef

MarComMan wrote: »

Just because I cannot find work does not mean that I have changed my occupation.

Sorry but as far as any insurance company is concerned you have changed your occupation, you do not have one you have become unemployed.

dunstonh

Just because I cannot find work does not mean that I have changed my occupation.

Yes it does. Not being in employment means you do not currently have an occupation.

I still fail to see how this is relevant to such a hike in premium.

already answered on this thread.

I think a little more transparency in how premiums are calculated would not go amiss.

Commercially sensitive material. No insurance company wants to give its hard earned data away for free. It has nothing to do with you anyway. They have their price. You take it or leave it. It is a retail product just like any other. Do you walk into Currys and ask for transparency on how they calculate the cost of a TV or ask BMW for transparency on the price of a car?

martinthebandit

dunstonh wrote: »

...... It is a retail product just like any other. Do you walk into Currys and ask for transparency on how they calculate the cost of a TV or ask BMW for transparency on the price of a car?

Except that the price of a TV or BMW is generally the same for everyone, the price of car insurance seems to depend on the colour of the moon and if there are 5 Wednesdays in the month so I have to agree with the OP a little (actually a lot) more transparency would be a good thing.

MarComMan

cajef wrote: »

Sorry but as far as any insurance company is concerned you have changed your occupation, you do not have one you have become unemployed.

Thanks Cajef. So it seems. It looks like I will be walking in a couple of weeks. Anyway, whilst I understand but disagree with terminology, the hike in price from £292 to over £1000 and with another insurer seems a little out of proportion. As I said, I was not shopping around when I made this enquiry which was separate to the issue of price, rather to clarify whether I needed to re-photograph my mini, which I do (or did) by the way.

MarComMan

dunstonh wrote: »

Yes it does. Not being in employment means you do not currently have an occupation.



already answered on this thread.

Terminology, again.

Commercially sensitive material. No insurance company wants to give its hard earned data away for free. It has nothing to do with you anyway. They have their price. You take it or leave it. It is a retail product just like any other. Do you walk into Currys and ask for transparency on how they calculate the cost of a TV or ask BMW for transparency on the price of a car?

Google give away hard earned data for free every time you carry out a search or access your Analytics account. Perhaps insurance companies doing the same, at least in how the mechanisms work, would gain a bit of kudos from their customers, if they did. Buying a TV or BMW does not compare as the price is not influenced by me as an individual; age, occupation, where I live, how much TV I will watch on it or how far I will drive my beamer. Transparency is not so critical as the competition for such products provides in itself, more transparency.

vaio

there was a similar story on here last year or the year before...

Punter rings insurer to tell them he has been made redundant

"sorry to hear that" says call centre person, "that will be an extra £100 plus £40 admin fee please"

"Why" says punter

"Because you are now a higher risk" says ccp, "more fraud claims, less maintenance and you have the time to spend all day driving around"

A month later he rings again to tell them he has got a new job

"Congratulations" says ccp "that will be another £100 plus £40 admin fee please"

"why" says punter

"Because you are now a higher risk" says ccp, "as you are commuting to work in rush hour and leaving your car in the works car park all day"

**In the interests of transparency some of the above might be an urban myth, on the other hand, it might be the next business model for RSA now it looks like their add 30% to non fault claims scam is going to unravel in the Court of Appeal**