Car Insurance Increased Mid-Term

hobbgoblin

Hello All

Seeking advice for my Dad. My mums car is insured with Direct Line and when my brother passed his test they added him to the insurance which obviously increased the policy price. He has now got his own car so they have removed him from the policy but Direct line have increased the policy price to £55 per month.

The original policy was £31.48 per month. So with three months left for it to run they have almost doubled the original price, and when questioned they just said it was the price on the day that stands. Does anyone know if this is right? why would it not go back to the original price? as the policy is exactly the same as it was, and that was obviously a 12 month contract.

vaio

It would seem fair to me that the price went up when he was added and returned to the previous level when he was removed, obviously you'll incur an admin fee each time you make a change.

If you feel you have been treated less than fairly then complain and if still not happy then refer to the FOS

hobbgoblin

vaio wrote: »

It would seem fair to me that the price went up when he was added and returned to the previous level when he was removed, obviously you'll incur an admin fee each time you make a change.

If you feel you have been treated less than fairly then complain and if still not happy then refer to the FOS

The problem been that it hasnt returned to the previous level, its gone from the original £31.48 to over £55 per month. The £31.48 been the original quote taken out 9 months ago, the £55 is the price now with my brother removed.

Quentin

Each time you make a change you incur an admin fee irrespective of whether or not the change results in a premium alteration.

Your Dad agreed a 12 month contract originally. But he has requested (at least) 2 alterations subsequently.

He cannot expect to keep to the original deal as he is the one who has wanted to change it!

But as advised in #2 he can still complain to them using their formal complaints procedure and will be able to escalate to the fos for their adudication at no cost to him if unhappy with their reply.

vaio

Is suspect that some (if not all) of the increase might be admin costs.

You say three months left on the policy so likely two payments remaining, admin fee of £50 = £25 per payment

Buellguy

vaio wrote: »

Is suspect that some (if not all) of the increase might be admin costs.

You say three months left on the policy so likely two payments remaining, admin fee of £50 = £25 per payment

Certainly sounds like this is the reason to me

hmdiow1985

When an Insurance company charge to add a driver on, it is based on that days rates, with admin charges. You would expect that the payments would drop to what they were before having him on there but this is not the case. The return premium will also include charges for the change and is not exactly pro rata, from renewal the price should reduce back down dependant on how rates have changed over the last year. Hope this helps.

thenudeone

When your dad rang to ask about removing a driver from the policy, he should have been told of the admin charges and change to the premium, in which case he should have simply said - just leave it as it is then.

If he wasn't told, he has good grounds for a complaint.

oscarward

I'm with direct line, I added my son to the policy when we went on holiday just for the week.

The admin fee was £15 and as I pay annually the only other charge was the £7 for the weeks cover.