Changing Car Mid Policy Help

TipsyTaylor

Hello everyone,
Perhaps a strange one...
I use an insurance broker and recently changed my insurance provider (The old one had run for 12 months and this offered a better price, for the same policy details). When I changed, I told the broker that I would also be changing car shortly. They provided a quote for the new car and told me I just needed to let them know when I switched to the new car and they would sort it out. The new policy was quite a bit more expensive, but I was aware of this and it was no major problem.
I am now changing car and the broker has quoted a fee, for the remaining months of the current policy that is much higher than they had told me before. They have also provided a quote for a full year, once the current policy has finished and this is as it was originally (slightly more, but to be expected as the original quote from three months ago).
I have always paid this by direct debit and, with this broker, the fee is split into ten months of payments (no months no payment made). So far, I have paid three months on the policy.
I was paying £272 a year for my current / old car and was quoted (about) £470 for the next car, using the same insurance provider. I have now been quoted £486 for a year (which, as I said, is fine and only a slight increase) but told I need to pay £63.07 a month for the remainder of the current policy.
Has the contact with the broker just got this wrong? Or have I not read the (very) small print about changing cars?
Thanks,
Tipsy

Quentin

If it's cost effective cancel and take a new policy

forgotmyname

Prices change. You didnt take out the policy on the new car on the day they quoted so prices have changed.

Plus your paying in installments so you have the finance to settle.

TipsyTaylor

I understand that prices change, but what I thought (what I was told) is that the price would change from £272 a year (Split over ten payments) to £486. What the broker is trying to charge me is £63.07 a month. This equates to £630.70 over the year (ten payments) and that's what doesn't seem right to me?

TipsyTaylor

They also want to charge me £109 for cancelling the contract and this also seems ridiculously high (I thought standard industry charges were about £50).

tykesi

Sounds to me like you haven't read the T&Cs you agreed to when taking out the policy through the broker. That "(very) small print" is there for a reason, hardly anybody else's fault that you didn't read it.

The £486 would have been the annual payment, the £63 per month is a loan for that annual payment so will include the interest for that loan. All standard practice.

forgotmyname

Whats the interest rate for paying monthly? I wouldn't be surprised if it was between 19% and 29%. I would put money on it being towards the higher end of those figures.

agrinnall

While it's likely that the posts above are the cause of the higher than expected payment amounts, the way to be sure is to ask the broker to explain.

Reardoa

They should set out within your documentation what fees they will charge for things such as mid term changes and cancellations. They only earn a relatively small amount from car and household insurance so its normal for a broker to charge fees.
Those fees cannot change but the price for the change of vehicle can and probably will. Ask them to break down the additional premium and fees they are charging so you can challenge it