Double Discount Car Insurance Loophole!
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MSE_Martin
Posts: 8,272 Money Saving Expert
Nationwide* is offering drivers 'double the difference' if you find a cheaper quote (same cover level) from now till 31 Oct. Its insurance is not traditionally that competitive, yet this means you can really push the savings.
Step 1. Get a quote from Nationwide
Step 2. Use m'Car Insurance Cost Cutting System to find the very cheapest so you can undercut it
Step 3. Take out Nationwide's insurance, then present it with the lower quote to get double your discount back.
Nationwide does stipulate this must be a like for like quote - ie comprehensive for comprehensive. It does also have a few other t&cs which give it a 'get out of jail free card', but most people should be able to get the discount back.
And if Nationwide turns out to be the cheapest, then you're still winning anyway.
Important Update
I know many of you have said "great idea, but im scared to pay out so much more". Well do remember even if Nationwide don't agree to give double the discount, you have a 14 day cooling off period. This is from its t&cs
Please read your Policy carefully and keep it in a safe place. If You do not feel that this Policy meets Your requirements, please send it back to Us straight away. If it is returned to Us within 14 days of receipt We will refund the premium in full provided no claims have been made during that time. The full annual premium will be due if a claim has been made during that period.
OK further clarification for you:
Some Qs I emailed Nationwide and its responses
Q. Can I check, the excess on claims must be within £25 (and is this within £25 or a difference of £25 or less)?
Yes. So if you have a compulsory excess of £100 and voluntary excess of £100 with us, we would allow a combined excess of any where between £175 and £225.
Q. If the policy you're comparing doesn't have European cover, would this knock it out?
Yes. We work hard to make sure our standard policy is a great package. The comparison quote needs to include all the things we cover as standard. This includes cover for driving in Europe for up to 90 days, temporary courtesy car and any additional options like legal assistance and breakdown services.
(addition from martin: this is one to be vary careful of, I belief the offer is rather disengenuous of Nationwide, as these are options on many insurance policies, still just search for the cheapest with the equivalents)
Q. If you are going for a monthly policy then are you factoring in the interest cost in the APR
Yes. Just multiply the monthly cost by 12 for both ours and the competitors quote for a like for like comparison.
Q. What happens if the difference is more than the cost of the second policy (ie nationwide is £1000, the second policy is £400)
As long as the quote is on a like for like basis, we will honour the price promise.
FYI, this is what we say about the price promise: "BUY from us and if you then find a better quote, we'll refund double the difference." The policy needs to be purchased from us before the price promise can be claimed upon.
(addition from martin: duh.... as if i hadn't noticed!
Q. I presume though it says "Nationwide can cancel this promise at any time", if you took out the cover when the promise is on, but then it was cancelled before you claim, it'll still be valid?
Yes
PS. I've altered the link to Nationwide above so that when you click it, a little revenue is generated for MoneySavingExpert.com. As usual this doesn't impact or change either the recommendation or the result in any way. Read more on this sites non profit driven ethical stance.
Step 1. Get a quote from Nationwide
Step 2. Use m'Car Insurance Cost Cutting System to find the very cheapest so you can undercut it
Step 3. Take out Nationwide's insurance, then present it with the lower quote to get double your discount back.
Nationwide does stipulate this must be a like for like quote - ie comprehensive for comprehensive. It does also have a few other t&cs which give it a 'get out of jail free card', but most people should be able to get the discount back.
And if Nationwide turns out to be the cheapest, then you're still winning anyway.
Important Update
I know many of you have said "great idea, but im scared to pay out so much more". Well do remember even if Nationwide don't agree to give double the discount, you have a 14 day cooling off period. This is from its t&cs
Please read your Policy carefully and keep it in a safe place. If You do not feel that this Policy meets Your requirements, please send it back to Us straight away. If it is returned to Us within 14 days of receipt We will refund the premium in full provided no claims have been made during that time. The full annual premium will be due if a claim has been made during that period.
Click reply to discuss
Further Q&As ADDED 5/9/05
OK further clarification for you:
Some Qs I emailed Nationwide and its responses
Q. Can I check, the excess on claims must be within £25 (and is this within £25 or a difference of £25 or less)?
Yes. So if you have a compulsory excess of £100 and voluntary excess of £100 with us, we would allow a combined excess of any where between £175 and £225.
Q. If the policy you're comparing doesn't have European cover, would this knock it out?
Yes. We work hard to make sure our standard policy is a great package. The comparison quote needs to include all the things we cover as standard. This includes cover for driving in Europe for up to 90 days, temporary courtesy car and any additional options like legal assistance and breakdown services.
(addition from martin: this is one to be vary careful of, I belief the offer is rather disengenuous of Nationwide, as these are options on many insurance policies, still just search for the cheapest with the equivalents)
Q. If you are going for a monthly policy then are you factoring in the interest cost in the APR
Yes. Just multiply the monthly cost by 12 for both ours and the competitors quote for a like for like comparison.
Q. What happens if the difference is more than the cost of the second policy (ie nationwide is £1000, the second policy is £400)
As long as the quote is on a like for like basis, we will honour the price promise.
FYI, this is what we say about the price promise: "BUY from us and if you then find a better quote, we'll refund double the difference." The policy needs to be purchased from us before the price promise can be claimed upon.
(addition from martin: duh.... as if i hadn't noticed!
Q. I presume though it says "Nationwide can cancel this promise at any time", if you took out the cover when the promise is on, but then it was cancelled before you claim, it'll still be valid?
Yes
PS. I've altered the link to Nationwide above so that when you click it, a little revenue is generated for MoneySavingExpert.com. As usual this doesn't impact or change either the recommendation or the result in any way. Read more on this sites non profit driven ethical stance.
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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Comments
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But remember that this is almost always a BAD idea as most companies either levy explicit cancellation charges or calculate their premiums using strange formulae which mean you get far less than a pro-rata refund.MSE_Martin wrote:REMEMBER: Provided you haven't claimed you should be able to change at any time, not just renewal.0 -
These are the terms and cons from Nationwide website
Price Promise Terms & Conditions
A Price Promise claim form is available from your local branch or by calling 08457 30 20 10. Full terms and conditions are listed below:
This offer applies to Nationwide car insurance purchased by 31 October 2005 and any claim subsequently made up to and including 28 November 2005.
The level of cover, policyholder and all other details for the quote must be the same as your Nationwide car insurance policy.
A valid claim must include an original quote dated after the commencement date of your Nationwide car insurance policy, but within 28 days, together with a copy of your Nationwide car insurance schedule.
A refund will be paid out on double the difference in the total cost of your car insurance premium charged.
Claims will be paid out subject to a minimum amount of £1 difference in annual premiums.
Only one claim per customer.
Nationwide reserves the right to withdraw this offer at any time.
This offer is not available in conjunction with any other offer or promotion.
Subject to satisfying the required criteria, you will receive your cheque for double the difference in annual premiums within 28 days of sending us a valid claim form.
Send your completed claim form to the following address: Nationwide's Car Insurance Price Promise, FREEPOST, Horizon West, Canal View Road, Newbury, RG14 5ZP.
Doesn't look like a lot of chance for them to weasel out of paying up.
BenI beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
The Insurance is provided by Churchill. So whats stopping me buying from Nationwide and then getting the cheaper quote from Churchill (i've quoted online using both and churchill is cheaper) and asking for a refund.
It just can't be that simple! Surley....
Mark0 -
I got a quote for £560 and my renewal is £370, I'm not taking the chance !0
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Just had a quote from Nationwide for my Rover ... £1070.
Norwich Union have quoted £500 for an even better policy with lower excess etc.
So if I take out the cover, they will refund me almost what I paid?? Is this going to be the first time ever that I get paid to insure my car?
I'm a bit wary about it. Has anyone successfully claimed yet?If you found my comment helpful, please click the 'Thanks' button below :T0 -
Goodness me - it looks like there's going to be some fun with this offer based on the figures quoted in the last few posts. 0
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Does this mean like I had a tesco quote and rang to ask about the access they said for the voluntary access of £200 it said it was automatically £200 for fire or theft or £150 voluntary with automatically £100 fire n theft but on the nationwide it said a different combination. Would this void the double back thing and would proof just be by printing the quote out from the net?
Also, would this be for monthly payments = monthly payments and would the interest charged have to be the same aswell, amount of months to pay ect?Thanx
Lady_K0 -
I think I will wait to hear if someone has claimed successfully.
I have been quoted £170 for my renewal (Diamond), but with Nationwide they want £300 ! So they will give me £260 ??? for nothing ?
Seems to good to be true****************************0 -
LloydsTSB were doing this same offer last year and I had no trouble claiming. And I cant imagine Nationwide wanting to give themselves a bad name for not paying up. I would say go for it. Just make sure the excesses etc. are the same.What goes around - comes around
give lots and you will always recieve lots0 -
Lady_K wrote:Does this mean like I had a tesco quote and rang to ask about the access they said for the voluntary access of £200 it said it was automatically £200 for fire or theft or £150 voluntary with automatically £100 fire n theft but on the nationwide it said a different combination. Would this void the double back thing and would proof just be by printing the quote out from the net?
You should be able to elect a lower excess for an increased premium, set one quote to match the other, or set both to £0 excess.0
This discussion has been closed.
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