Breakdown cover extra payment 23 February at 12:23PM in Motoring 10 replies 409 views

RLillis

I pay for my breakdown cover annually, in full, each summer. This morning I got an email saying they're going to take an extra payment soon. The payment is about an extra 25%.

Can they do that?

Is there still a point to using a comparison site if the companies can add a secondary charge at will?

Thanks in advance for your thoughts.

baser999

What’s the extra payment for? Surely you entered a contract with them for £x when you renewed last summer.
Which Breakdown company we talking about here?

RLillis

This is what the email says (I just picked the two bits that seemed most relevant & had no identifying details; the grammatical error is theirs): 

"I am writing to you today with regards to your upcoming contract price adjustment. As I’m sure you’re aware; every year your contract with us increases in line with the Retail Price Index plus 3.8%. As a business, we have always chosen to increase prices by what the market determines and are guided by the UK Government and Office for National Statistics as this always ensures that we’re never charging a customer unnecessary cost."

"For Customer’s who Pay In Full

If you’re a customer who has paid for their contract in full, then the total amount of £7.51 will be collected before 05/03/2023. This will appear on your bank statement as: DYNAMO COVER RPI CHARGE."

 

EssexExile

It's all in their terms and conditions.

Flight3287462

Have a read here (I haven't yet)

https://forums.moneysavingexpert.com/discussion/6353864/annual-rpi-increase-on-already-paid-breakdown-insurance

Sounds like a bunch of sharks but I imagine it is in their T&C so you know what to do when it expires if you end up paying it.

Flight3287462

Here you go:-

https://dynamocover.com/prices/

RLillis

Flight3287462 said:

Have a read here (I haven't yet)

https://forums.moneysavingexpert.com/discussion/6353864/annual-rpi-increase-on-already-paid-breakdown-insurance

Sounds like a bunch of sharks but I imagine it is in their T&C so you know what to do when it expires if you end up paying it.

That thread is helpful: thank you for finding it (I did search before posting my questions but obviously didn't use the right terms).

D1974d

The Terms of Business clearly state
"Each year the Fee for our service or our Membership Fee will be subject to an annual increase. This is determined by calculating to the total amount paid to us by the RPI Rate plus an additional 3.8%, which is applied at the same time."

What they have done is calculatethe increase on the BREAKDOWN INSURANCE PREMIUM, this is a price that is then heavily discounted to the amount you actual pay. That is a total and utter breach.

Best way to solve this is to raise a formal complaint with the company, wait 8 weeks, or until they answer, whatever is the soonest, they file a complaint with the financial ombudsman 

chemell

I received this email from Dynamo for a breakdown cover I took out last March 2022. I called them in July to cancel my cover as I sold my car. They said it would be more to cancel the cover than I had paid ! And suggested I just let it run which I did. I have now received this rip off email saying they are taking £7.77 for the one month left on my policy due to inflation. (My Barclaycard told me they have tried to charge this but I've asked them to block payment) I hung on for one hour to speak to them and when I eventually got to first call on their list they cut me off ! 

How can they charge an extra amount after I paid in full fir my policy last March? 

Lease expose this rip off. 

Andytl6

Here's how to beat it: https://forums.moneysavingexpert.com/discussion/comment/79902520/#Comment_79902520

Ectophile

Andytl6 said:

Here's how to beat it: https://forums.moneysavingexpert.com/discussion/comment/79902520/#Comment_79902520

That link's dead.