Insurance company reneging on premium quote

Frances63

Hi, if anyone could advise on this I would greatly appreciate it.

I was quoted a premium for pet insurance at £12 per month. I accepted this and all the details were confirmed to me by email.

The policy started over 2 weeks ago and the first direct debit has been taken.

Today I have been phoned by the insurance company who now say that their system made a mistake, and for our type of dog the premium is actually nearly £20 per month. I have told them I don't accept this and that they should honour the contract we already have, mistake or not. It is not my mistake but theirs.

Are they trying it on with me?

I am awaiting a call back from a supervisor now.

I spent several days comparing policies and premiums and would not have chosen this fairly unknown company with high excess charges had I been quoted £20 per month.

Should I stick to my guns? Are they legally able to renege on the deal and cancel the policy now it's started?

Frances63

I have now had a call back, though not from the supervisor as promised, saying they will honour the first month at the quoted premium (already taken from my bank account) but not the rest from here on. They are prepared to offer me a 10% reduction.

I have refused this & put the ball back in their court. We have a contract already at the price they quoted and I accepted over 2 weeks ago.

Anyone have any advice please?

Quentin

You cannot win this by "right" as the policy will allow them to cancel (just as you will be allowed to cancel). Check the policy wording to see what their right to cancel involves.

So better to keep it amiable and see if they will better their offer.

Check the market again and see if you can do better elsewhere.

Scottish_david

I would stick to your guns on this one.

Once an insurance contract quote has been accepted the insurer cannot just cancel the contract without sufficient reason. To do so would be a breach of contract.

Whether an insurance company can change the premiums depends on the policy wording. Therefore I would check this. However, it is unlikely that there would not be wording that said "if we make a mistake at quote time then we can charge you extra."

If they still do not move when they call you back then ask them to quote what section of the policy document allows them to do this.

If they still insist then ask them how they think that their actions comply with treating customers fairly legislation.

If this does not work then try threatening them with one or all of the following: trading standards, the financial ombudsman service, the FCA.

Hope this helps and good luck.

Quentin

Scottish_david wrote: »

.......Once an insurance contract quote has been accepted the insurer cannot just cancel the contract without sufficient reason. To do so would be a breach of contract. ....

Policies usually do allow both sides to cancel.

So you need to check the wording as usually they say they are allowed to cancel subject to giving notice etc for "any reason", just as you can cancel for any reason, subject again to any conditions.

Frances63

Thank you Quentin and Scottish_david for you advice.

I'm glad I'd refused to accept the 'offer'. I had a call back saying they could resolve the issue if they re-categorised my dog as a Mongrel instead of a Lurcher Cross. It seems Mongrels are cheaper and they said as a Lurcher is not a recognised breed (it is a sighthound crossed with another breed) they were happy to consider him a Mongrel.

I said I could accept that as long as my insurance won't be invalidated in the event of a claim (the vet has him registered as a Lurcher Cross) and they said they have recorded all the information and still have the fact I stated he was a lurcher cross originally, but it just doesn't work with their system.

It was something to do with the cross-over between the comparison site list of breeds and how it computes to their list which is slightly different.

Now that they have put all this in writing (well email) to me, so there is a record of it, I feel content. (I hope that I'm not being naiive?)

And very glad I stuck to my guns!

Thanks so much for the advice, it really helps to feel (& thus come across as) sure of yourself when dealing with these companies.

.