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The confusing thing they call car insurance

saxonblue Jul 8, 2013

  1. saxonblue

    saxonblue Member

    Ok now, its time to renew my insurance on the A6, I put this car on my old policy I had with my old A4 cab, it didn't run out till 01 Aug, so I just switch the cars over and let the policy roll on, I did pay £130 to switch insurance from my old A4 cab 1.8t sport, to my A6 3.2 fsi Quattro. ok I thought. its a bigger lump in there so I can just about see why with all the admin fees and messing about £130 is not toooo bad.
    But up comes renew time.... I do some quotes on the net, while waiting for my letter telling me my new price for my insurers to come. but instead I get one saying they have now stopped trading as netpig (my old one) and have been taken over by a company called Bridal insurance, and could I pleas phone them.
    so I did........ WELL BUGGER ME. confused isn't the word, I got told a could insure my car for "AS LITTLE AS £1467...." wtf..
    I said oh dear me, (honest) and said joking I should have kept my old a4 cab. " no your right to get the A6" I was told, "as the A4 cab would have cost you a lot more to insure???????:scared2:
    I told the NICE MAN on the phone I played an extra £130 to put this car on my policy, and asked why. "ERRRM, I DONT KNOW SIR" is what I got, can I have a refund then?, ERMMM NO, THAT COMPANY HAS STOPED TRADING, WE JUST TOOK OVER THE POLICYS FROM THEM"

    NEEDLESS TO SAY, IDIDNT RENUE WITH THEM!!, instead I got a quote form good old compare the Market.com. £441.90p is a lot better, oh and I get a soft toy as well.
    now I don't pretend to understand insurance but, I have had quotes with a price difference of over £1000. how can this be. its the same car the same driver and the same place I live, confused isn't the word.. ps confused wanted £982, just to let you know:banghead:
  2. chris22b

    chris22b New Member

    tell me about it i rang to insure my a6 3.0tdi and the quotes i was getting were between 900-2900 im 43 but have been a names driver for 10yes + my wife rang on co not on comparison sites and well they can now check if ive had any claims and well i got a quote for 520 i was happy they have given me 60% intro discount but the other co,s said they cant do that utter bullxxit going on there but hey its an isurance co ..... what else do you expect...
  3. Springer*

    Springer* Member

    Some interesting opinions on here..

    Firstly, in response to the initial post by Saxonblue, it sounds like you insured yourself with a Tom Noddy outfit in the first place. Hey, we all hate having to pay for insurance and its also not the most exciting subject in the world, but there really is a strong argument that suggests you get what you pay for.

    So many of the internet sites pull up all kinds of ropey insurance outfits that sell "cheap" car insurance. In many cases you are asking a lot to expect quality cover and advice, or better yet, a decent claims service when needed. Its wrong that outfits like these can be allowed to take your money promising a decent carry on, when in reality they are hopeless, but its is a sad fact that it still goes on. This is why the FSA (now called the FCA) was brought in to regulate the insurance industry, and its worth reading the small print and knowing your rights :readit:. Hopefully in time these cowboy outfits will be shut down and only the decent companies will remain.

    Anyway, I think you would find that the A6 3.2 Quattro will have been a higher group than the outgoing 1.8T Cab and with it being newer it would've attracted a much smaller age of vehicle discount, hence the £130 additional premium you were asked to pay for the period up until renewal. At the time of changing cars over though it might have been an idea to work out how many days there were left up until your renewal date and then working out what the annual difference in premium was between the two cars, so at least you would've had some idea what the renewal premium was likely to be. By doing this, if the renewal offering came through at a vastly different figure you would have a much stronger argument to try and negotiate the new price downward. Still, this negotiation may not have been easy given the handover to the new insurance company that took place in your case.

    Once again, it is quite common for some of these cheaper, lesser insurers to chop and change as time goes on. Many are subsidiaries of larger insurers and depending on how profitable their book of policies has been they will either carry on or rebrand themselves as something else as and when the need arises. This can be a real pain in the wotsits if it affects you.

    It is worth noting that since the Statement of Principles expired earlier this year, insurers are not obligated to offer a renewal price on your current policy when it falls due. If they want to pull the plug and clear off at renewal they can if they really want to. Unfortunately this means that many insurers can drop you in it if they see fit so it is best to prepare yourself as early as possible, especially if you have had a claim, though of course the severity of the claim may affect your ability to get alternative quotes.

    Normally as an insurance broker I would advise against shopping around every year for insurance as in many cases this can work against you, but with the car insurance market being what it is of late it really is adviseable to have a look around where possible each year, even if it is purely to see if your current insurers are working hard to keep your custom. However, saying this, its only worth shopping around at renewal or if you make a change to your policy and the additional premium is far too expensive. Insurers are well within their rights to impose penalties for you upping sticks and leaving them during the first year of cover, as this is when their administrative costs are highest.

    If a new company took over from the other one, the new company won't necessarily have the same pricing structure and underwriting philosophy as the outgoing company, so you can't expect that the new premium will tie up directly with whatever you were quoted by the previous people. Its effectively the same as you going to a completely new outfit. It doesn't really surprise me that the new company's pricing of your Cab doesn't seem to bear any resemblance to what you were paying before. Last year's policy and the one starting from this renewal should really be looked upon as two totally separate contracts.

    You wouldn't be entitled to a refund by the new company just because their pricing of cover for the 1.8T Cab was more than the previous company's. That's pretty normal because they are obviously two completely separate organisations.

    It may seem crackers, but it is pretty normal for you to receive a wide range of quotes from the marketplace for your car. All insurers have completely different pricing structures for their cover and all of them have a certain type of client that fits their target market. Insurers that typically like older drivers for example either won't offer a quote for a younger driver or will offer a quote that is hugely expensive so as to price themselves out of the equation.

    Some insurers will have suffered claims in a certain area of the country or from a certain age group of drivers and as such will price their policies accordingly to try and avoid risks that could prove to be problematic. This causes the hugely wide range of quotes that you see when you put a quote through on the comparison sites.

    Finally on this, insurers generally aren't just out there to rip you off. That's just nonsense. Some have rather excessive scales of fees and charges yes, but each will price your policy to reflect the risk that you pose to them. Many insurers are losing money hand over fist and have to try and turn a profit at the end of the day just like any other business. Uninsured drivers, ambulance chasing law firms, personal injury scams and such like cost the industry billions every year and the money to pay for it has to come from somewhere. In 2011, on average for every £1 motor insurers collected in premiums, they paid out £4 in claims! You can imagine that not many businesses can sustain this kind of trading.

    It is definitely worth paying a little bit extra to get yourself with a reputable company that can deliver on its promise of good service and sound advice.

    In response to Chris's post - not all insurers offer an introductory no-claims discount. At the end of the day the decision to offer any kind of premium discount based upon your previous driving experience, regardless of whether or not it is as a main driver or named driver of a vehicle is entirely up to the insurer concerned. Once again, a decision is made on how much of a risk they see you as being to them, and this may not be entirely based on how clean your driving record is. For example, if you had a squeaky clean driving record, but statistically according to that particular insurer you lived in a high risk area or had a high risk vehicle or were doing a higher than average mileage etc, this might prevent an insurer from being able to offer an introductory discount.

    Most insurers also use the Claims and Underwriting Exchange (CUE) in order to check the accuracy of data disclosed to them. Its kind of a national computer that holds information on previous claims. This is used to protect insurers from fraud where people might not disclose previous claims or convictions in order to obtain lower premiums. Once again, this is part of insurers assessing how much of a risk you pose to them in order to price your cover correctly and is a pretty standard practice.

    Sorry for the long post, but its necessary to put certain things into the right context and explain why some of the strange things happen. Hope this is of some use.

  4. saxonblue

    saxonblue Member

    I haven't been on here for AGES, but thanks for the posts... one thing I don't get, (try this out...)
    my policy is with ALLANCE, and cost me £441.90 in the end
    just went on the website of my insurance provider BUT did a quote in someone else's name, for the same address at the same age, everything the same except the name, and ...............£441.90. YEP FOR REAL..
    now I did the same quote for me, and LOL-£565.12 LOL. maybe I just have to much time on my hands,
    try it people, see what you get?

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