Motor Insurance - scam?
speedster66
Forumite 1 Post
Hi MSE, I recently received my motor insurance renewal documents from Direct Line and I happened to notice they have my occupation as "Professional Exc.Sport/Tv/Film" which I found surprising as I've never worked in those industries - it was also in quite small print.
I have, however, worked in the insurance industry and I've always understood any entertainment or sport related occupation carries higher premiums. Therefore, I would never have put this as my occupation - especially as I have always worked in IT.
After contacting Direct Line to correct this error, I was advised there would be no increase in my premium. I told them I was expecting a decrease, but the response was 'our system generated premium shows no difference'. I expect the story would be different if I was making the change the other way around.
The cynic in me thinks this is a deliberate act on the part of the insurer to subtly increase premiums, hoping customers won't notice. If this was a genuine mistake, why did it not default to either get DL Customer Service to contact me to confirm my occupation, or to an 'average' occupation and not one which carries a generally higher premium than most.
Needless to say, I am now investigating alternative providers, which is a shame as I have been a Direct Line customer for many years across various policies.
I have, however, worked in the insurance industry and I've always understood any entertainment or sport related occupation carries higher premiums. Therefore, I would never have put this as my occupation - especially as I have always worked in IT.
After contacting Direct Line to correct this error, I was advised there would be no increase in my premium. I told them I was expecting a decrease, but the response was 'our system generated premium shows no difference'. I expect the story would be different if I was making the change the other way around.
The cynic in me thinks this is a deliberate act on the part of the insurer to subtly increase premiums, hoping customers won't notice. If this was a genuine mistake, why did it not default to either get DL Customer Service to contact me to confirm my occupation, or to an 'average' occupation and not one which carries a generally higher premium than most.
Needless to say, I am now investigating alternative providers, which is a shame as I have been a Direct Line customer for many years across various policies.
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Replies
Is it possible you put the occupation as professional at some point ?
I note that you used to work in the insurance industry. I feel relieved that this is no longer the case
If you have, indeed, got the wrong of the stick, you should post an apology. Pretty bad that you have stated that this is a scam when it's clearly nothing of the sort. As if a company like Direct Line would re-note their clients as being professional sportspeople to illicit a higher premium.
Unbelievable post.
DM
Of course there is. The scam is that insurers will never reduce your premium for changes but will nearly always increase it.
:wall:
Even if that were true (which, demonstrably, it isn't) that still isn't a scam. Buy yourself a dictionary.
Well it is dishonest to not give a refund when it is due but charge extra every time they can.
:wall:
You are talking utter garbage. Sorry, but you are.
What on earth are you on about with regards to refunds? If you change the details of the insured risk then a new premium is calculated. The new premium may be higher, or lower, than the previous one. As an example, when I moved house a few years ago, my car insurance premium went down because my new address was considered to pose a lower risk. I got a refund for the difference over the remaining term of the policy. So, as I said, they do reduce premiums if the risk changes and it is more favourable.
Furthermore, insurance is provided by private companies, who can charge whatever they want for the service. So if they decided that they weren't going to reduce premiums on existing policies they would be perfectly entitled to do so. They decide what constitutes risk. However, as I have already demonstrated, your contention that they don't reduce premiums is utter nonsense.
Your definition of "scam" is also a bit woolly. Try this from Cambridge:
Or this from Oxford:
Or this from Merriam-Webster:
Nothing you describe fits the definition of a scam, and you are also completely wrong that insurers don't reduce premiums if risk is reduced.
You are wrong: just accept it.