Insurance Premium

Recently renewed our insurance policy. 2 weeks after paying annual premium and receiving certificate of motor insurance, the insurance company contacted us to advise their advisor made an error and to maintain policy, we need to pay another £1000!
is this legal? 

Comments

  • Brie
    Brie Posts: 9,305
    Photogenic First Post Name Dropper First Anniversary
    Forumite
    To be honest i don't know for sure but my first thought is "are you sure it's the actual insurance company?"   If it was a text or even an email purporting to be from the insurers it may in fact be a scam trying to get you to click on something.  If that's what you've received, or even a letter in the post, I would suggest that you google the company and contact them via a phone number on their website or even on paperwork previously received from them to ensure you're talking to the right people.  

    If it is correct that a mistake was made then I'd be having a good look at the T&Cs to see what it says in there about such a radical change. 

    If you have received everything and it says "annual premium £400" or similar and that seemed a reasonable amount then I'd want them to honour that price.  If they're now saying "annual premium £1400" but last year was £350 then I'd want to know why they think such an increase is warranted.  I know that premiums have jumped in the last year but if it jumped so much when you were looking to renew you would have had the chance to look around for alternatives.  I wonder if they would consider a compromise?  

    If on the other hand last year's premium was £900 and they said it was £400 for this year and you accepted that I would suggest that's a legitimate mistake on their part.  The increase to £1400 from £400 is significant but from £900 to £1400 much less so and somewhat in keeping what others have reported on their new premiums.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • cymruchris
    cymruchris Posts: 4,884
    First Anniversary First Post Name Dropper Photogenic
    Forumite
    As above really - need more context and detail.

    If the previous year was £1500 - then you got a quote of £375 and paid that - then it would seem like a genuine error that needs to be addressed. If last year was £250 - and now they want £1250 - that might need some questions asking.

    How did you purchase originally? Online? Speaking to a human?


    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • It is kosher! I have spoken directly. Original policy had me as main driver and 18 year old son as named driver. Reviewed various options and received quote for policy holder to remain as myself, son to be main driver and me a named driver. Circa £2.3k. Insurance company now stating advisor made an error and cost should be £3.3k. Offered me 1 day to address! Further discussions ongoing but given 7 days to cancel or pay! My view - sold and paid for in good faith and their problem, not mine. Nothing in T’s & C’s that I can find yet. 
  • cymruchris
    cymruchris Posts: 4,884
    First Anniversary First Post Name Dropper Photogenic
    Forumite
    What are your comparable quotes from other providers? Are there any around the £2.3k you paid? Or are they all around £3.3k or more?
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • Wonka_2
    Wonka_2 Posts: 610
    First Post First Anniversary Name Dropper Combo Breaker
    Forumite
    I’m going through the same search to add a newly qualified driver to insurance and, depending how many companies you’ve spoken to, the £2300 is on the cheap end of what I’m finding. I’m also finding I’m having to check/recheck the details each time as conditions get added/removed/changed. 

    Did you do it online/over the phone and did you receive your policy documents, with pricing on, that aligned with your request/quote ? 

    If you did then from a consumer perspective I’d expect you’re in the right and I’d be (nicely) explaining to them that you took the policy in good faith and received their contract. However this is the insurance industry and if something goes wrong you want them onside rather than having a dispute going on in the background. 

    Hopefully others can add the legalities of your ‘rights’ but I suspect you’re better taking the refund and starting again with a more reputable company - and I’m making an assumption that this is one of those at the bottom end of the market preying on the younger drivers 
  • wheldcj
    wheldcj Posts: 73
    First Anniversary Name Dropper First Post Combo Breaker
    Forumite
    Stue1 said:
    It is kosher! I have spoken directly. Original policy had me as main driver and 18 year old son as named driver. Reviewed various options and received quote for policy holder to remain as myself, son to be main driver and me a named driver. Circa £2.3k. Insurance company now stating advisor made an error and cost should be £3.3k. Offered me 1 day to address! Further discussions ongoing but given 7 days to cancel or pay! My view - sold and paid for in good faith and their problem, not mine. Nothing in T’s & C’s that I can find yet. 

    Who are you dealing with, the insurance company or the broker/intermediary and how did the initial renewal terms come through.  Was it an official quote document or just an e-mail from an advisor saying how much it was?

    If you are dealing with the insurer i.e. the company that takes your money and pays the claims then I would resist.  They have made an underwriting error either human or their computer system and they should honour the mistake.   I would challenge this, they cannot give you 7 days to pay up either, that is ridiculous.  There are routes of escalation you can take if they still refuse.

    If it is the broker and someone has told you the wrong premium it is likely that they have received the quote from the insurer and miscommunicated it.   The insurer will still want the correct amount and your situation becomes less certain.  You could pay the correct amount of ask the broker to pay the difference.   There are agency laws for a broker so you could threaten them will legal action if it is very clear they made an error or omission.  They will have received a tidy commission for their placement so they will just have to take a hit!

    Or if it is a genuine error from an individual (who may themselves be having sleepless nights about screwing up) you may decide to accept it should have been the higher amount.  Even then they should give you more time to resolve. 
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards