Car insurance quotes process

niknakness

Apologies if this is is repeat post for anyone, I put it under consumer rights before and I am not sure if that was the right place.

EDIT - The policy had been discussed, agreed on and large deposit taken on the 15/03/22 with the agent informing me I was insured to drive, premium change happened on the 16/03/22, and the certificate showing the start of the policy to be 16/03/22 after payment had been taken.

In previous times when I have bought car insurance, Ive had a quote online then either the transaction happens online or I speak to someone to complete it. But the price stays the same as the original quote.

This time I cold called a few companies. So a couple of days ago I tried U Drive Cover Ltd and received a quote over the phone of pay monthly of £60 resulting in total of £805, I decided I would go for that quote as I was going to look at a car that day, the agent said I was insured to drive and sent off the completed information to get it validated.
The next morning I got an email saying the validation had been successful and to ring the agent back to go through final details and complete.

When I called back yesterday I got a different agent, it was strange because they started talking about a different amount than my already agreed quote, it was very confusing and at one point he stopped to check with me if it was a quote I was ringing for and I said no, that I had had my quote and I was ringing to go through he final processes. There was then some information about a score of points during validation that meant my already agreed quote went up by more than £30 a month...he said he would speak to his manager to see if he could get a bit of a discount, I think he got something negligible because it still worked out at £90 a month in total.

The agents for insurance speak so fast, I understand why, because they're repeating themselves a lot but it was all so rushed.
And because I had been told I was insured the day before I went and paid for the car, so I felt I maybe had to go with this policy, or the vehicle would be uninsured. I feel like I was a bit trapped and limited by my options at that point.

What would have happened if the vehicle had been in an incident in the time I was told the vehicle was insured? They would have had carte blanche to charge me any premium they chose! I cannot help but feel this isn't right...

I have never had this happen before or heard of it happening to other people...What I do not understand is how this premium could change over night when I had been told that I was insured to drive the day before, at that accepted quote, and there was no new information that had been changed that could affect this. 

Another thing I noticed this morning is that they have valued the vehicle at £1200, when I said it was worth £600...the market value is about that and this is a well used scruffy vehicle in its winter years how can they change details like that!?

I am just waiting for my contract to be sent with a list of things they need from me, like my driving license, so as of yet I have not signed anything. 

I realise this is a broker that deals with high risk policies and I have been informed that they might do things differently.

I am wondering if this has happened to anyone else?

Any advice most welcome...

dunstonh

When I called back yesterday I got a different agent, it was strange because they started talking about a different amount than my already agreed quote, it was very confusing and at one point he stopped to check with me if it was a quote I was ringing for and I said no, that I had had my quote and I was ringing to go through he final processes. There was then some information about a score of points during validation that meant my already agreed quote went up by more than £30 a month...he said he would speak to his manager to see if he could get a bit of a discount, I think he got something negligible because it still worked out at £90 a month in total.

In most cases where you pay monthly, the insurer uses a credit agreement and it costs more than the annual payment.   So, possible issues here are 
a) you were given the annual quote first and not the monthly equivalent.
b) you were credit scored and the cost of the credit went up due to your personal information.

What would have happened if the vehicle had been in an incident in the time I was told the vehicle was insured?
 They would have had carte blanche to charge me any premium they chose! I cannot help but feel this isn't right...

The policy document will confirm the dates.  So, if it's within that then you would be insured.      The premium is agreed upon at outset.  So, it shouldn't change unless new information comes to light.

Another thing I noticed this morning is that they have valued the vehicle at £1200, when I said it was worth £600...the market value is about that and this is a well used scruffy vehicle in its winter years how can they change details like that!?

Often insurers will use the book value of the car rather than your opinion of what the car is worth.

Northern_Wanderer

Sorry that you have had a difficult time. Rather than calling around in future, the best way to get cheap insurance is by following this guide

https://www.moneysavingexpert.com/insurance/car-insurance/ 

If you have been requoted, as it sounds like you have as the insurance appears not to have been bought, then it is normal for prices to change, they constantly change. I don't know if you are buying a high risk policy, and that is why you have phoned around. 

£90 a month for a £600 banger seems a lot to me, but I guess if you are young, inexperienced or had claims then it may be normal. I've just arranged my insurance for around £180 for the whole year. I did notice wide variations with the "market value" that had been pre-filled on the comparison sites.

niknakness

In most cases where you pay monthly, the insurer uses a credit agreement and it costs more than the annual payment.   So, possible issues here are 
a) you were given the annual quote first and not the monthly equivalent.
b) you were credit scored and the cost of the credit went up due to your personal information.

Yes, I realise as I am essentially borrowing on credit that these checks are made and that the result will affect my quote. But for this to happen after I have agreed on a policy and made a substantial deposit seems a little unfair to me, as they already have my money so what am I to do!?

The policy document will confirm the dates.  So, if it's within that then you would be insured.      The premium is agreed upon at outset.  So, it shouldn't change unless new information comes to light.

So I have just double checked the policy dates and they are wrong, it says it starts on the 16th, but it didn't, it started on the 15th, as once I had made my deposit (on the 15th) the agent said I was insured to drive. I assume they keep recordings of this so that should be there plain as day.

Often insurers will use the book value of the car rather than your opinion of what the car is worth.

Yes, £650 is the book price, I checked this online and it was confirmed by several other insurers as I shopped for quotes.

niknakness

Sorry everyone, somehow the point that I had already agreed on a policy and premium, and paid a substantial deposit got missed out in my original post...

Im not sure if that makes a difference, but if I bought something else from a shop, or say travel insurance and they got back to me the next day or during my holiday to ask for more, I would find that hard to get my head around.. I know this transaction is not the same, but whats to stop them coming back in a couple of months time and doing it again? 

niknakness

Northern_Wanderer said:

Sorry that you have had a difficult time. Rather than calling around in future, the best way to get cheap insurance is by following this guide

https://www.moneysavingexpert.com/insurance/car-insurance/ 

Thank you for your reply Northern Wanderer,

I did indeed use the MSE guide first, I used the guidance in that for about the first 3 hours of my shop around. 2 things go against me, firstly we are not on the Royal Mail Database yet (this is a whole other story!). So sometimes you cannot find your address in the drop down box and sometimes theres no manual option, and sometimes they cannot do it over the phone.

If you have been requoted, as it sounds like you have as the insurance appears not to have been bought, then it is normal for prices to change, they constantly change. I don't know if you are buying a high risk policy, and that is why you have phoned around. 

Ah, so can a requote not happen if you have already bought the product??
Because I had essentially bought it, I paid a deposit and was told that I was insured to drive.

Yes, I was looking at high risk policies because I had a driving ban a couple of years ago, no points but still an unspent conviction.
I am middleaged with 10 yrs NCB and last years policy was £423 ( commercial 4seat astra van), a bit lower than my pre ban premium on a larger engine vehicle! But I have had to change vehicle again now, which is where I am having the problem. 

But the thing that is vexing me so much is that essentially I had bought the policy before they raised the premium. I still dont feel like this is right!

400ixl

Ignore the value of the car. It is used as a way to trigger if the policy needs reviewing by an underwriter. Other than that it is pretty meaningless as it does not prejudice the process they would go through upon paying out a claim. So take that off of your radar.

When you called to set up the policy, what confirmation in writing did you get that it had been agreed and put in place? Usually you will get emailed the policy document pretty much instantly, or at the very least an email confirmation of the transaction.

Once that is done, the price is fixed. If you need to make a change then that is a mid term adjustment.

It does sound like the policy was not actually set up on the 15th as you thought it had been and they just did background checks (unusual in itself as that takes seconds these days). Unless they were referring the policy to an underwriter  for the final price, but that would have meant you were not insured and they should not have told you that you were.

You really need to get a transcript or recording of your call as without that it is a bit of your word that they actually set up a policy and told you you were insured.

niknakness

400ixl said:

Ignore the value of the car. It is used as a way to trigger if the policy needs reviewing by an underwriter. Other than that it is pretty meaningless as it does not prejudice the process they would go through upon paying out a claim. So take that off of your radar.

Thanks for that info, glad I can take an aspect out of the equation!

When you called to set up the policy, what confirmation in writing did you get that it had been agreed and put in place? Usually you will get emailed the policy document pretty much instantly, or at the very least an email confirmation of the transaction. 

I received an email dated the 15th thanking me for my purchase, I have popped a screenshot below. I entered all my details correctly, nothing changed, so under that condition I couldnt see why it would rise overnight.

So, this rise in premium could be seen as a mid term adjustment?
As technically I have already bought the product, albeit subject to conditions that appear to be fulfilled on my part.

It may have been sent for an underwriter to check over and thats why the price rose, but as you say, then I should not have been told I was insured...
If this was a necessary requirement, I assume they should have not have let me make the purchase right there and then? 

The agent yawned a couple of times during the process and stumbled in his patter, so I knew he was tired...

Basically then, I need to get that transcript! Is this an easy thing to do? Will i have to open some kind of dispute first?

niknakness

Thank you everyone for your help, I have seen some reviews that I missed before. I am not the first person whom this has happened to. I will be cancelling it today and contacting the ombudsman.