Pay as you go insurance rip off

We got pay as you go insurance out for my son in october. The quotes they gave us for topping up 1000 miles was really good (after a massive £925 deposit) and this meant it was less over a year than the other annual quotes. Paid the deposit and have already topped up once . This morning we had a email to say ' there was a glitch in the system and it means you were undercharged for mile top up' they then sent us the revised prices- now a whopping £330 per 1000 miles. This is treble what we were quoted at when we bought it. The insurance company are blaming the underwriters and saying there is nothing they can do and that we can cancel it or carry on with the new charges- and to also put a complaint in. Surely this is illegal for this to happen, anyone could do it if its not. 
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Comments

  • elsien
    elsien Posts: 32,294
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    Why would a genuine error be illegal?
    You do have the option of now looking for a better deal elsewhere with the added bonus that presumably the first top up has been cheaper than it should have been? 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • daveyjp
    daveyjp Posts: 12,392
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    Considering young driver insurance is now averaging at around £3,000, £300 per thousand miles still looks quite good value, unless his annual mileage is well above average.
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    Presumably they are only looking to apply the charges going forward rather than retrospectively apply them?
    Guess they are also waiving any cancellation charge and pro-rata the up front payment?

  • so i spoke to the brokers in question, yes, i have options, either keep it or not . if i don't then you were right Dullgreyguy , they will waver any cancellation charge but thats it. My son will not go passed the miles we stated, but the increased payments means that it is about 300 more a year than other annual prices, we took the pay by miles because they said if he doesnt do that many it would be cheaper and it was. but not now. Its seem totally unfair that due to their computer error, we should pay for it, with no one accountable. Its also so unfair that we have to stick to our contracts but they dont have to . 
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    But how are you paying for it? The only detriment it sounds like is loss of 3 months towards an NCD year
  • we paid £921 deposit and at 2 months we paid 122 to top up his miles. so we would lose over £1000 and 3 months NCB if we started again with another company
  • dunstonh
    dunstonh Posts: 115,706
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     Its seem totally unfair that due to their computer error, we should pay for it, with no one accountable.
    Another way of looking at it is that your son got lucky but now has to face reality going forward.

    Its also so unfair that we have to stick to our contracts but they dont have to . 
    So, if they had overcharged by mistake, are you suggesting that they shouldn't refund?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    edited 9 February at 6:12PM
    we paid £921 deposit and at 2 months we paid 122 to top up his miles. so we would lose over £1000 and 3 months NCB if we started again with another company
    Presumably there would be a pro-rata refund on both 
  • I was under the impression that coming on here I would be able to get some advice on to how I deal with this . I’m not getting any of that, so I’ll look elsewhere . 
  • user1977
    user1977 Posts: 13,343
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    edited 9 February at 6:12PM
    I was under the impression that coming on here I would be able to get some advice on to how I deal with this. 
    You can, but you haven't asked for advice.
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