Where do i stand with this insurance situation...

[J Charles]

Background:

Owned a GSXR 600 that was insured with a well known broker and everything was fine. Sold that bike and purchased a Triumph Scrambler. Phoned up my broker at the end of June and ask to change bike, no problem they said. Additional premium was given and paid by myself and everything seemed fine.

Friday i receive a letter Saying "We note from our records, that following a recent amendment to your policy the additional premium of £50 has not been paid.

I phone up to enquire, especially seeing as i haven't made any recent changes to my policy.

The answer was as follows:

When you changed from your GSXR sir, we gave you a quote for the Triumph, but your insurance company is now demanding more money as they quoted us the wrong price back in June.

Now hold on a minute, i have insured many many vehicles in my time, including multiple mid term adjustments and never had i had a broker send me a letter 6 months after an amendment saying, oh sorry we quoted you wrongly give us more money. Surely the broker should swallow this fee? Its not a lot of money but in principle i have already said i am not going to pay it.

And to top it all off the broker said, we will put a note that you aren't going to pay and we will wait and see what the insurer will do. I said no, you are my broker, i'm not happy to leave this and see what happens (i could potentially become uninsured) you need to find out for me. Supposedly the nice man is going to phone who i am underwritten to and find out. (doesn't hold breath)

Any thoughts would be greatly welcomed

many thanks

J
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'07 Triumph Scrambler 900 - '61 Matchless G12 - '78 BMW R100RS Motorsport - '79 Bultaco Sherpa T

[c-m]

Nope it's pretty simple. You need to pay the money if you want to continue in your current insurance.

If you would prefer to leave the company, then an 'honest mistake', in this case the broker (that is who your contract is with) quoting the wrong figure, would allow you to set the contract aside under contract law.

In all decency though, you expect the broker to swallow the cost as a gesture of good will.

[D O G]

I'd be asking them to point out exactly where in their T&C's it says they can retrospectively vary their premium.

[c-m]

[daemonoid]

I believe they're not allowed to change the price once you've already paid.

Your broker should probably be the one fighting with the insurance co... but they probably don't want to bite he hand that feeds.

There's probably some clause in the contract that says they can withdraw at any time or demand extra payment if a mistake is made, but that would likely be an unfair clause and so would not hold up if you took it that far.

I'd suggest 3 options:
Look at insurance elsewhere, if you can get it cheaper move companies and save the hassle (you'll be able to leave early as they messed up).
Contact citizens advice.
Charge them a renegotiation fee comparable to their change of terms fees - I've had good responses with this in the past, basically send one letter out informing them to contact you in writing, not over the phone and then list your charges for replying to such correspondence if it's not sorted immediately. Citizens advice may be able help with that one too. May not work in this case, but it got rid of a parking fine and debt collectors who were after previous occupants.
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@thomasgarrard | www.straitjkt.com | www.racingseven.com

[stinkwheel]

I'd probably give them the option of continuing the policy as it exists or cancelling the policy, stressing I expect a full pro-rata refund for the remaining time as they have breached the contract which was laid out in the statement of fact issued at the beginning of the policy.

Then I'd go with someone else.
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[P.]

I'd ask why on earth they asked for an additional premium swapping to a bike that isn't as plastic fantastic

I'd like to swap my GSXR to a GS500, oh sir thats a premium increase of £x.xx...

[J Charles]

[P.]

Still, I could go from a GSXR to a Tiger 1050 and its cheaper

I'd still say they can't actually charge you more than what they quoted on the phone..as in cant demand MORE on top of what you have paid.

[G]

They can charge more than initially quoted definitely - but I think they're going to have a much harder time retrospectively adding the charge.

Were it me, I'd start with a strongly worded letter to appropriate directors questioning their level of service and why they think this is acceptable.

[P.]

[G]

No, that's like getting a quote online, £100. Ringing up to take it out and them saying "sorry, we can't match that, it'll be £200". Which is the situation I had with MCE in the past. (Before you could pay for the insurance online.)

Once you've paid, things are a bit different. However before then they don't have to honour a 'quote', which is of course just a 'quote' .

[J Charles]

Thanks for the responses, but we have an update.

UPDATE:

I have just been on the phone to said broker, and i am now being told the additional cost is the Cancellation fee for my GSXR policy. As a new policy was set up for the triumph as the underwriter i was with could not cover it.

I asked for a cancellation cost on my current policy, which has been running for 6 months, so i am due 25% back.

25% policy refund minus £32 cancellation fee minus the original cancellation fee leaves us at -£4

So i owe them, £4 to cancel the policy.

I know this changes things as its a existing charge of a previous policy, but the lady on the phone admitted that it looks like they calculated incorrectly, at the time of requote on the new bike.

Anyway, i am now waiting for a call from a manager to see what they can do.

Despite weather i am wrong or right with my protest, i feel like changing company anyway, just to make myself feel better lol.

J
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'07 Triumph Scrambler 900 - '61 Matchless G12 - '78 BMW R100RS Motorsport - '79 Bultaco Sherpa T

[P.]

[Marmalade]

There shouldn't be a cancellation fee. They dropped a clanger, you're not happy.

So it's either pay £50 excess premium or pay a cancellation fee. what tossers
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[Kwaks]

Either they honour the contract they created, or if they feel this is impossible they refund from inception. Simple
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[pits]

[Marmalade]

It is a breach. They misquoted and want more money than was agreed and paid up at policy inception
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Nobby the Bastard: How yo tell the difference between the actual japanese and her just screaming because she's had live fish stuck up her arse? [url=https://www.nicks-shop.co.uk/bcf-goodies-15-c.aspGet BCF stickers and things here[/url] Reflective helmet stickers - Legal requirement in france - Clicky

[Ichy]

I thought a cancellation fee was charged by the brokers to cover their costs and not by the insurance company?

If that is the case does that not mean that they blatantly lied during the first call?
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[Rogerborg]

[0l0dom0l0]

So what about the 6 months NCB you've lost then?

Can you name and shame because I want to avoid this company.

My dad was insured for his diversion 600, he rang up and asked how much it would be to change the policy over to his Fazer 100 which he was buying at the time. The broker said his current insurance company wouldn't cover it and he would have to take out a new policy, with about 4 months left until he'd got his years NCB.

Turned out it was cheaper to keep the policy running and get a new policy from scratch.

Deffo been miss-sold and I would be writing some very strongly worded letters to the company in question.
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Bikes: 2007 Derbi GPR 50, 1998 Yamaha Fazer 600 (written off), 2002 Yamaha Fazer 600, 1994 CBR 600F, 2003 Triumph Daytona 600, Kawasaki ZX6R J1.....Current: 2006 Yamaha FZ6, 1998 Suzuki TL1000R and a Honda VFR 400 NC30.

[J Charles]

[trevoriv]

Tell them to pike off.

You've been mis-sold if they didnt tell you that they were putting you on a new policy and therefore new contract.

And the time delay is not acceptable. Get a quote from someone else and tell them that you are going to move your business elsewhere.
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Past: '96 Thundercat, '02 ZX636R (A1P), '58 KTM 690 SM LC4 Current: '06 ZX636R (C6F)
Mudskipper wrote: Someone just has to sig that...

[J Charles]

Sorry about the delayed reply, been away for work.

But i have news, after many hours spend on hold, i finally spoke to someone with some sense, and guess what, the £50 charge has been dropped as a gesture of goodwill.

Still not overly impressed with the overall experience but, at least it's sorted.
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'07 Triumph Scrambler 900 - '61 Matchless G12 - '78 BMW R100RS Motorsport - '79 Bultaco Sherpa T

[anthony_r6]