Rip Off Car Insurance

Options
freddie65
freddie65 Posts: 8 Forumite
in Insurance & life assurance
Hi

I'm at my wit's end with my son's insurance policy, which was set up through Think Insurance.

The policy is a 'Black Box' policy with an annual mileage limit, which has been exceeded on two occasions. I have had to purchase additional mileage at a scandalous rate - £300 for 1000 miles.

I guess it's my own fault for setting up the policy without adequate mileage, however my son is now trapped. If we don't purchase additional mileage at £300 for 1000 miles they will cancel his policy.

The policy has 4 months left to run. No accidents or speeding issues.

Can anyone offer an advice?

Thanks

Comments

  • gardner1
    gardner1 Posts: 3,154 Forumite
    Options
    so how many miles was the original policy for.......its not hard to work out how many mile you'll do a year

    No doubt in the small print it stated additional miles will be charged at £xxxx per 0000

    Its your sons policy.....let him pay for it
  • angrycrow
    angrycrow Posts: 1,079 Forumite
    First Anniversary First Post
    Options
    Whilst £300 to add a 1000 miles feels expensive how much would the policy have cost with the correct mileage declared.

    I am guessing the initial policy price is around £1500 and mileage most likely estimated at 6000. What were the quotes for 12000 miles he is actually doing.

    The policy terms likely state that if you cancel the policy early they will project the current mileage across the whole policy term and charge for any over mileage pro rata for the time on cover.

    Your options are park the car for the next 4 months or pay for additional mileage and try to limit his use. At the end of the policy year try to get cover without the black box.

    Your son is not the first to find himself in this situation. It is very difficult for a new driver to know what mileage they will be doing.
  • forgotmyname
    forgotmyname Posts: 32,569 Forumite
    First Anniversary Name Dropper First Post
    Options
    Can you find a cheaper method to travel 1000 miles?

    If not then its good value, if you can then choose that option.
    Assuming he has not gone over the limit already.
    Censorship Reigns Supreme in Troll City...

  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Options
    freddie65 wrote: »
    Hi

    I'm at my wit's end with my son's insurance policy, which was set up through Think Insurance.

    The policy is a 'Black Box' policy with an annual mileage limit, which has been exceeded on two occasions. I have had to purchase additional mileage at a scandalous rate - £300 for 1000 miles.

    I guess it's my own fault for setting up the policy without adequate mileage, however my son is now trapped. If we don't purchase additional mileage at £300 for 1000 miles they will cancel his policy.

    The policy has 4 months left to run. No accidents or speeding issues.

    Can anyone offer an advice?

    Thanks

    Dont see the rip off, its the price you pay for having a black box policy.

    Just pay the £300, he doesnt really want a cancelled policy on his record.
  • dunstonh
    dunstonh Posts: 116,539 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Dont see the rip off,

    As is normally the case in threads making allegations of rip off in the subject.
    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.
  • bigisi
    bigisi Posts: 925 Forumite
    Options
    dunstonh wrote: »
    As is normally the case in threads making allegations of rip off in the subject.

    Yup - "Rip off", "SCAM", "Outrageous" are usually the words used by those who actually mean "I didn't read the terms of what I was buying".

    Always someone else's fault.
  • charlotte1994
    charlotte1994 Posts: 854 Forumite
    Options
    If he has a black-box I am assuming that he is a young driver, insurance really does penalise young drivers, they can be the safest driver in the world at 18 yet it will cost the earth to get insurance. I think that £300 for 1,000 is a rip off! Some times for a new driver it can be hard to estimate the mileage they will do in a year. All I can say is that you know for next time to over estimate the miles. Personally I worked out my mileage to work and back, plus my hobby mileage and then added a load more on just in case. I don't go far but you never know, and those few miles at the weekend really add up.

    If the policy only has 4 months I would say let it run, if he can get around without using his miles up for cheaper than £300 then he should do that, as much as it would suck. But next time add the extra miles on before hand :-) or, it might even be cheaper enough at the renewal to get rid of the black box
  • Farmer_Johnson
    Farmer_Johnson Posts: 124 Forumite
    Options
    Yes, it can be hard to estimate, but no estimation is needed. You know how many miles a month you get, see how many you are doing, and cut back to make the numbers match if necessary.

    If it’s used for commuting (and you have to assume he knows the distance to work so arranged enough miles to cover that), then cut down to only commuting.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.7K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards