Named Driver Car insurance Charge Increase 150% from provisional to full licence after Policy ended

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Kayfranky
Kayfranky Posts: 18 Forumite
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in Insurance & life assurance
Hi All,

My wife was a named driver on my car insurance with Admiral.The policy cost us about 110£ per month as we live in London ad were both new drivers(i had my license for 2 years)
She had a provisional license when we took out the policy.The policy was scheduled to End in 11 Nov 19.

In about July 19 she passed her test and got a full license but then few days after she went abroad and stayed for over 4 months.By the time she returned the Insurance had ended.

But a 2 weeks before the end Admiral asked me to updfate my details to see if they could give us a quote for a renewal.
I gave the details of mime and the new license of wife to them online.

The then came back and said they cant provide a renewal for us for the next year.Which I accepted and looked for a renewal else where.

However,few days later they then also sent us an extra bill of £690.51!(apparently for the changes to my wife license)
This was after I had paid my last and final months premium to them.

My questions is :are they being fair with me in relation to this new Bill of 690.51 for 4months for my mrs new license on top of our 110£ monthly payments.which works out at 282£ per month.This is over 150% Increase?

Also I am liable to pay this bill considering I had already settled my final Months premium to them?

Any advice will help please.Thanks guyss..
«1

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  • bertiewhite
    bertiewhite Posts: 1,904 Forumite
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    Premiums always rise when a learner goes from provisional to full license as they are then unsupervised.
  • POPPYOSCAR
    POPPYOSCAR Posts: 14,897 Forumite
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    bertiewhite wrote: »
    Premiums always rise when a learner goes from provisional to full license as they are then unsupervised.

    No they do not.

    Our daughter got a £70 refund from Direct Line when she passed her driving test.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    You hadn't 'settled' if it was still based on your wife holding a provisional. Why didn't you notify them when she passed her test?
  • uk1
    uk1 Posts: 1,839 Forumite
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    Kayfranky wrote: »
    Hi All,

    My wife was a named driver on my car insurance with Admiral.The policy cost us about 110£ per month as we live in London ad were both new drivers(i had my license for 2 years)
    She had a provisional license when we took out the policy.The policy was scheduled to End in 11 Nov 19.

    In about July 19 she passed her test and got a full license but then few days after she went abroad and stayed for over 4 months.By the time she returned the Insurance had ended.

    But a 2 weeks before the end Admiral asked me to updfate my details to see if they could give us a quote for a renewal.
    I gave the details of mime and the new license of wife to them online.

    The then came back and said they cant provide a renewal for us for the next year.Which I accepted and looked for a renewal else where.

    However,few days later they then also sent us an extra bill of £690.51!(apparently for the changes to my wife license)
    This was after I had paid my last and final months premium to them.

    My questions is :are they being fair with me in relation to this new Bill of 690.51 for 4months for my mrs new license on top of our 110£ monthly payments.which works out at 282£ per month.This is over 150% Increase?

    Also I am liable to pay this bill considering I had already settled my final Months premium to them?

    Any advice will help please.Thanks guyss..

    This is a little unusual. However imo you needn't pay the premium. I offer the following observations.

    1. Your insurers would have had the right to void the policy if the new risk was unacceptable to them when notified,. On the face of it this would seem unlikely as the risk is softened when she passed her test, but oddly they say that they wouldn't offered cover for renewal. This is very odd and implies that there might be some other factor that hasn't been posted or perhaps understood by you?

    2. If however you had disclosed the change at the time and the insurers wished to increase premiums, you would have had an opportunity to cancel future cover and look elsewhere. The policy does not obligate you to pay unknown premiums.

    3. Taking 1 and 2 then it further seems that they cannot demand premiums for a risk they clearly say that they wouldn't accept. The risk is no different today than it was when she passed with the exception you hadn't disclose the presumably improvement to the risk.

    On balance I'd say you have no obligation to pay and I'd explain this to them and let them pursue it if they wish.

    I hope I've understood the situation correctly. Good luck.
  • Kayfranky
    Kayfranky Posts: 18 Forumite
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    @POPPYOSCAR ,I believe the reason why they didnt want to renew is the fact that while my wife was away for 3 months to the end of the Insurance contract.I was involved in a minor incident with another vehicle.

    The other driver made a claim from Aviva and they accepted to settle that cliam,Eventhough I didnt accept responsibility as the fault was the other drivers.

    But @POPPYOSCAR what happens if I decide not to pay.?Will they report this on my credit score?I am really worried as I am looking to get a mortgage later this year and dont want this to be an issue on my score.
  • Kayfranky
    Kayfranky Posts: 18 Forumite
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    @BoGoF My wife was abroad when her new License arrived.(And she was there for about 4 months as there were family issues out there)

    I didnt open her letters ..as I didnt want to be nosy till after a few months.

    Even if I had not settled my question is are they justified to charged me over 150% of my existing premium?
  • bertiewhite
    bertiewhite Posts: 1,904 Forumite
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    POPPYOSCAR wrote: »
    No they do not.

    Our daughter got a £70 refund from Direct Line when she passed her driving test.

    OK, she's been very lucky then. They do in my experience.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Kayfranky wrote: »
    @BoGoF My wife was abroad when her new License arrived.(And she was there for about 4 months as there were family issues out there)

    I didnt open her letters ..as I didnt want to be nosy till after a few months.

    Even if I had not settled my question is are they justified to charged me over 150% of my existing premium?

    So what are you saying? That you didn't know she had passed her test?

    And if she was out of the country for 4 months and your insurance would be expiring during this time why didn't you remove her.

    They may be justified, had you informed them she had passed her test they would have either ceased to provide cover or increase the premiums. However a claim has been made (an important fact you omitted to mention in OP) by a 3rd party so they have had to pay out. Seems only fair they charge you what they would have had you notified them.
  • uk1
    uk1 Posts: 1,839 Forumite
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    edited 15 January 2020 at 11:04AM
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    BoGoF wrote: »
    However a claim has been made (an important fact you omitted to mention in OP) by a 3rd party so they have had to pay out. Seems only fair they charge you what they would have had you notified them.
    uk1 wrote: »
    This is very odd and implies that there might be some other factor that hasn't been posted or perhaps understood by you?

    I hope I've understood the situation correctly. Good luck.

    Why do people waste other people's time by asking for their time and help but refuse to disclose all of the relevant facts? To make it better they are rarely bothered to even say thanks when you try to help them.

    I give up. :mad:
  • molerat
    molerat Posts: 31,963 Forumite
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    edited 15 January 2020 at 3:34PM
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    IMPORTANT
    You must tell us if any information detailed on your Motor Proposal Confirmation changes, as we may not be able to arrange cover in every case. Any incorrect information could affect the amount you are able to claim or may even mean you are unable to make a claim. If the information differs significantly it could even result in your policy being cancelled or declared void. Please read in accordance with General Condition 15.
    The Motor Proposal Confirmation is your record of the information you have provided, any changes could alter the terms of our agreement to insure you or the premium you pay. For example, if you have received motoring convictions since your policy started. If we are able to arrange cover, we will calculate any difference in premium from the date you were obliged to notify us. Please note the notification timescales described below.
    2. Please tell us immediately
    .................
    if you or any driver named on your policy, have been disqualified from driving, your entitlement to drive has been suspended or withdrawn (revoked) or your driving licence status has changed, for example if you pass your driving test and your licence changes from a provisional licence to a full licence (their bolding)
    Interesting wording though, I am sure there is enough ambiguity there for a challenge. On second thoughts it is not ambiguous at all, you don't need to inform them when a named driver passes their test !
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