Pay as you go insurance rip off

BRap

I'm in the same boat, took out pay as you go insurance for son, paid £625 up front and then top up every 1000 miles for approx £72.00.  I have topped up once at this price, next top up has just been taken from my bank for £306.  Surely we entered into a contract when we took the insurance out?  It doesn't sit well that they can increase this amount because of an error their end.      

dunstonh

Surely we entered into a contract when we took the insurance out?

You did.  However, that contract is unlikely to have fixed the price.  The pricing would almost certainly have been left variable at the point of top up.    It would be highly unlikely any company would fix the price indefinitely.  There may be short term fixing possible but that's all.

DullGreyGuy

dunstonh said:

Surely we entered into a contract when we took the insurance out?

You did.  However, that contract is unlikely to have fixed the price.  The pricing would almost certainly have been left variable at the point of top up.    It would be highly unlikely any company would fix the price indefinitely.  There may be short term fixing possible but that's all.

Its still an annual policy and so whilst the price is variable based on mileage the price per mile/block of miles is supposed to be fixed for the year (or the max is fixed and good driving can result in a discount) so that the customer has certainty. Obviously at renewal then it's a new contract and the price can totally change for the next year.