Car insurance refund?

Bechstein123

Hi all, this is my first time posting so thank you for approving me to join. It’s time for me to renew my car insurance which has thrown up an issue with how much I’ve been paying. I’m with Sheila’s Wheels and have been with them in 2019 and 2020 (much longer in fact) - it has now become apparent that they doubled the cost of my cover in 2020:

2021 = 373 
2020 = 878
2019 = 421 

I feel like I’ve been exploited as I’ve over paid by around £450 for my cover in 2020... Has this happened to anyone else? If so have you been able to get a refund? If not, do you think compensation on this would be possible? 

Thanks for your responses in advance.

neilmcl

Why is it "now become apparent"?

Every year you receive a renewal notice outlining the new premium for the following year giving you the option whether to stay with them or find another insurer. You've not been "exploited" and you're not due any compensation, not unless the amount paid is not what was agreed in your renewal, is this what has happened?

AdrianC

How much were other companies quoting in 2020?

Sandtree

Not only that but the renewal will have stated what your previous years premiums were so you can see the movement.

They offered a renewal at a high price and you accepted it. The only time when refunds come about typically is if the high cost was due to a claim being open at renewal that was subsequently settled non-fault after renewal  and then an adjustment is made to reflect the change.

Ditzy_Mitzy

I don't think any compensation is due here.  Sheila's Wheels offered an insurance policy at a particular price and the OP chose to buy it.  There was no requirement to buy the policy and the OP could have looked for another one at the time the renewal quote was given, if there was any suspicion it was uncompetitive.  

Oneye12

In 2020 many of us were given discount on our policies because we couldn’t go anywhere !
On my recent renewal last year’s details were there as a reminder...


One thing the op could do is write to the insurance company and ask for discount 2020 retrospectively and gauge reaction (if any). Personally I would cancel this year’s PDQ and go elsewhere.

Grumpy_chap

Bechstein123 said:

Hi all, this is my first time posting so thank you for approving me to join. It’s time for me to renew my car insurance which has thrown up an issue with how much I’ve been paying. I’m with Sheila’s Wheels and have been with them in 2019 and 2020 (much longer in fact) - it has now become apparent that they doubled the cost of my cover in 2020:

2021 = 373 
2020 = 878
2019 = 421 

I feel like I’ve been exploited as I’ve over paid by around £450 for my cover in 2020... Has this happened to anyone else? If so have you been able to get a refund? If not, do you think compensation on this would be possible? 

Thanks for your responses in advance.

Was the £878 an auto-renew figure?
Were there any other changes that influenced that premium?  Claims.  Address.  Car.  

The best thing to do is to first focus on the thing that can be controlled and that is the new premium for 2021.  Obtain competitive quotes using the price-comparison sites and if they are better overall, then you can move to another company.  Though < £400 is not excessive in the wider frame of all policies.

Is the £878 definitely the premium paid in 2020?  It is not an error processed through credit card twice (and even possibly a missed refund later)?

Bechstein123

Grumpy_chap said:

Bechstein123 said:

Hi all, this is my first time posting so thank you for approving me to join. It’s time for me to renew my car insurance which has thrown up an issue with how much I’ve been paying. I’m with Sheila’s Wheels and have been with them in 2019 and 2020 (much longer in fact) - it has now become apparent that they doubled the cost of my cover in 2020:

2021 = 373 
2020 = 878
2019 = 421 

I feel like I’ve been exploited as I’ve over paid by around £450 for my cover in 2020... Has this happened to anyone else? If so have you been able to get a refund? If not, do you think compensation on this would be possible? 

Thanks for your responses in advance.

Was the £878 an auto-renew figure?
Were there any other changes that influenced that premium?  Claims.  Address.  Car.  

The best thing to do is to first focus on the thing that can be controlled and that is the new premium for 2021.  Obtain competitive quotes using the price-comparison sites and if they are better overall, then you can move to another company.  Though < £400 is not excessive in the wider frame of all policies.

Is the £878 definitely the premium paid in 2020?  It is not an error processed through credit card twice (and even possibly a missed refund later)?

Thank you all for your responses. As far as I am aware the £878 was the premium paid via automatic renewal and not an additional credit card charge - also there was not any change in my circumstances which would justify a big difference. I understand some people can change car insurance and other things like that very easily and it’s not a problem for them but I find that sort of thing very hard to do and didn’t know what was meant to be reasonable or not for car insurance as I have been with Sheila’s wheels for a long time. Because of my situation I’m not somebody who regularly checks on my financial affairs. I can appreciate this leaves me in a vulnerable position, however I do feel the company has a responsibility not to increase their charges on an automatic renewal to such an inflated extent when it is clear to them this shouldn’t be the case - I am surprised this hasn’t happened to more people. From peoples advice, however, I have looked at other quotes for this year and the quote for this year seems reasonable.  

AdrianC

Bechstein123 said:
I understand some people can change car insurance and other things like that very easily and it’s not a problem for them but I find that sort of thing very hard to do

It's a lot less hard than it used to be.

Have you set up an account with one or more of the comparison engines?
If so, then once you've put your details in to get a quote once, you can simply refresh the quote from last year. Add in any changes to your details, or just say "Yep, all the same".

Because of my situation I’m not somebody who regularly checks on my financial affairs. I can appreciate this leaves me in a vulnerable position, however I do feel the company has a responsibility not to increase their charges on an automatic renewal to such an inflated extent when it is clear to them this shouldn’t be the case - I am surprised this hasn’t happened to more people.

You don't say what "your situation" is, but it's no surprise that insurers take advantage of customers who never shop around. It's a very long while since loyalty was a thing. In fact, it helps to keep prices down for those who do, because it subsidises their competitive premiums.

It's one reason why insurers have been required to put last year's premium onto auto-renew letters since 2017 - so when you renewed last year, you would have known the premium was doubling over the previous year... In addition, if you've auto-renewed four or more times in a row, they're legally required to tell you that it may be cheaper to shop around.

Sheila's Wheels is just a brand used by the giant eSure insurance group - who also own the GoCompare comparison site.

Sandtree

Bechstein123 said:
 I can appreciate this leaves me in a vulnerable position, however I do feel the company has a responsibility not to increase their charges on an automatic renewal to such an inflated extent when it is clear to them this shouldn’t be the case - I am surprised this hasn’t happened to more people. From peoples advice, however, I have looked at other quotes for this year and the quote for this year seems reasonable.  

Well you will be pleased to know that the FCA agrees with you to some degree and is looking to impose new rules that say you cannot charge a renewing customer more than you would charge them if they were a new customer. However the FCA does also acknowledge that for those that are savvy and shop around each year it is likely to increase their premiums as insurers will balance the pricing somewhere between the two extremes that currently exist.

neilmcl

Bechstein123 said:

Grumpy_chap said:

Bechstein123 said:

Hi all, this is my first time posting so thank you for approving me to join. It’s time for me to renew my car insurance which has thrown up an issue with how much I’ve been paying. I’m with Sheila’s Wheels and have been with them in 2019 and 2020 (much longer in fact) - it has now become apparent that they doubled the cost of my cover in 2020:

2021 = 373 
2020 = 878
2019 = 421 

I feel like I’ve been exploited as I’ve over paid by around £450 for my cover in 2020... Has this happened to anyone else? If so have you been able to get a refund? If not, do you think compensation on this would be possible? 

Thanks for your responses in advance.

Was the £878 an auto-renew figure?
Were there any other changes that influenced that premium?  Claims.  Address.  Car.  

The best thing to do is to first focus on the thing that can be controlled and that is the new premium for 2021.  Obtain competitive quotes using the price-comparison sites and if they are better overall, then you can move to another company.  Though < £400 is not excessive in the wider frame of all policies.

Is the £878 definitely the premium paid in 2020?  It is not an error processed through credit card twice (and even possibly a missed refund later)?

Thank you all for your responses. As far as I am aware the £878 was the premium paid via automatic renewal and not an additional credit card charge - also there was not any change in my circumstances which would justify a big difference. I understand some people can change car insurance and other things like that very easily and it’s not a problem for them but I find that sort of thing very hard to do and didn’t know what was meant to be reasonable or not for car insurance as I have been with Sheila’s wheels for a long time. Because of my situation I’m not somebody who regularly checks on my financial affairs. I can appreciate this leaves me in a vulnerable position, however I do feel the company has a responsibility not to increase their charges on an automatic renewal to such an inflated extent when it is clear to them this shouldn’t be the case - I am surprised this hasn’t happened to more people. From peoples advice, however, I have looked at other quotes for this year and the quote for this year seems reasonable.  

Be that as it it may, automatic renewal or not you would've still had a renewal notice and you agreed at the time to pay the new premium. The time to complain was at the time and prior to accepting the renewal. You may have not been aware of what was "reasonable" or not but clearly a doubling of your premium should've made you question it.