Direct line ripoff!!

Greenlawbear

So just found out my 83 year old father has been insuring  his car with Direct Line annually for the last 18 years. Drives about 1000 miles annually and probably 7000 miles when he was busy! 

His loyalty has been rewarded by DL setting his premiums at over £800 a year!!! Absolutely disgusted, and surely this business practice is no better than bogus workmen charging fortunes for minimum work?! 

Before I fire off a letter explaining my anger and disgust, can anyone advise re any procedure I should be aware of, or any similar experience of DL?
many thanks 

Carrot007

83, drives hardly any miles. Sounds like it should be high cost to me.

Wither on its own shoudl be high cost, both should be more.

Sandtree

New rules on insurance come in next year to stop renewals being higher than new business pricing because overcharging those who renew each year blindly has been seen as a systemic issue.

Have you actually done new business quotes though for him with DL and others to see what the market rate is? Age and ultra low mileage will mean higher quotes.

Aretnap

The average price of car insurance is a bit more than £400/year. £800 a year is expensive, but not insanely expensive. Have you actually got some quotes to see (a) what Direct Line would charge him as a new customer and (b) what other insurers would charge him? 

You might expect that his age and mileage would mean below average insurance costs but this isn't necessarily the case. It's true that people in late middle age/early retirement pay very low premiums, but they start to go up again as you head into your 80s, as you are starting to gey into the age group where too many people start to lose their eyesight, reflexes and faculties generally. There are a lot of 80 somethings who shouldn't really be driving any more, but still are. And very low mileage is often a sign of someone who is nervous, inexperienced or otherwise not really up to driving. There's a sweet spot in the ballpark of 6-8000 miles per year which has the lowest premiums; either side of the sweet spot will be more expensive.

Combine old age with very low mileage with old age and I can see it being a red flag for a lot of insurers. 

daveyjp

Mid 80s doing low miles is high risk.

By the time my grandfather reached mid 80s he was doing a few thousand a year.  It was after his third collision and claim, thankfully always with inanimate objects, it was time for him to get taxis.

jimbo6977

Greenlawbear said:

So just found out my 83 year old father has been insuring  his car with Direct Line annually for the last 18 years. Drives about 1000 miles annually and probably 7000 miles when he was busy! 

His loyalty has been rewarded by DL setting his premiums at over £800 a year!!! Absolutely disgusted, and surely this business practice is no better than bogus workmen charging fortunes for minimum work?! 

Before I fire off a letter explaining my anger and disgust, can anyone advise re any procedure I should be aware of, or any similar experience of DL?
many thanks 

Why waste your time, DL won't care and why should they?
They offered a price every year and it was accepted. 

Vegastare

I would look to Age Co, Rias or Saga.   I have scrapped DL for both car and home insurance.  Premiums really high when the hit comes when renew.al  Churchill is owned by DL too.  I don't think loyalty exists in the insurance market.

TELLIT01

Did the father keep Direct Line informed of the limited mileage they are doing?  Assuming the father is capable of managing their own affairs, a letter from the OP probably will get no response beyond informing the OP that they can't discuss the situation with him/her.

Sandtree

TELLIT01 said:

Did the father keep Direct Line informed of the limited mileage they are doing?  Assuming the father is capable of managing their own affairs, a letter from the OP probably will get no response beyond informing the OP that they can't discuss the situation with him/her.

Ultra low mileage tends to result in higher premiums as the lack of practice/familiarity with the vehicle/the road outweighs the less time on the road.

Unfortunately like Daveyjp I recall a case of a 15 year customer claim free and then 3 multi car accidents within a year with the customer each time mistaking brake and accelorater in the car park when he turned 85. Long discussion on if to ban him or not