Hi folks, first post here,

Last month we decided to buy a new car, we phoned up our insurance (Post Office) and put the new car on our existing policy as is the norm. However for various reasons we decided to keep our old car and aftegoing on the Compare the Market website I plumped for Budget insurance at about £ 180 fully comp. Everything was fine until I sent in my proof of no claims when I received a phone call fromn Budget telling me that 'No claims' discounts cannot be applied to two cars - fair enough my mistake, i hold my hands up. However I received today my new schedule of insurance with an increased premium of £ 490 !

I phoned Budget to discuss this. To cut a long story short they will not let me change the policy to third party insurance (premium of £ 180) and they will not let me cancel the policy without paying them £ 275.

The original schedule was dated 22nd of April, today I received an amended schedule with the new premium on it dated 21st May. Their t&c state 'you may cancel your policy within 14 days of either the policy start date or the date you receive the policy documents' which was today !

They insist that the policy started on 22nd April and that the 14 days run from then. They have also sent an amended credit agreement for me to sign which I am reluctant to do.

This is the first time in over 20 years driving I have had an issue such as this and I am really flabbergasted at the flippant and unsympathetic attitude of this insurance broker (that is what they are !)

Thanks in advance for any advice !

R

The position you have ended up in with Budget would be the same with any other company that checked your no claims discount proof. You can only use the no claims discount once. You arranged cover online, without getting any advice. Had you phoned Budget or any other company, you probably would have found out that you could not use the NCD proof again. You would have then been given a premium for which you would have chosen to phone around to see if you could do better. Some Insurers offer a discount for the 2nd car, if you have the 1st Insured with them.

Budgets cancellation terms and fees etc are one of the highest. They do this, so that they can offer cheaper premiums to new customers searching using comparison sites.

The 14day cooling off period is from the inception date or the date you received the original policy documents whichever is the latter.

So the advice is to sort this out with Budget. Budget or BISL are the Insurance intermediary that is the name behind the Post Office policy, so see if you are getting a 2nd car discount on the Budget policy. Then put it down to experience to avoid Budget/BISL when you make any future Insurance arrangements.

If you cancel without paying the cancellation fees, they will put debt collectors on to you and if you don't pay you will end up with a CCJ.

Thank you for your reply. I appreciate that the confusion here has came about because of my lack of knowledge on the insurance market - this is the first time I have had the privelage of owning and therefore having to insure a second car.

I just feel I have been given no option but to stay with them. I have never agreed to the increased premium so why should i sign their crdeit agreement , and as for the cancellation fee - it is just daylight robbery. Think about it I'm am being made to pay a cancellation fee based on a premium I have not agreed too !

Hands up I made an error, after all the car i have just insured with budget is the car that my 9 years no claims has been accrued on.

They will not even let me change the policy to third party cover without having to pay the cancellation fee and starting a new policy, and even if they did the premium would be more than the comprehensive cover that i have just now because technically i would no longer be a 'new customer' As a new customer i could insure the car for £ 169 with third party cover. I am afraid they are the most unhelpful and arrogant (with the exception of one advisor) insurance company I have ever had the misfortune to deal with.

I am very tempted to cancel anyway just on the principle that I do not want to be involved with this company any longer than I have to.

Nightmare !

Nightmare !

Yes it is. These forums are littered with posts of people who have found themselves in the same position as yourself.

Have you done a quote with Budget for comp cover on the car with nil NCD. If it is cheaper than the annual premium they are using to justify the increase, then you might have a way of arguing. Some companies appear to stitch up customers in this position by charging higher rates for amendments, than they would charge a new customer obtaining a fresh quote.

Budget have a poor reputation for the way they handle customers and if you want to get anywhere you have to make a complaint, so you can speak to customer relations.

Hi , the cover I now have with Budget is for Fully Comp with zero no claims. One female advisor was helpful enough yesterday to go through some of the options but 'her hands were tied' .

It is now costing me more to insure my 'V' reg battered old car than it is to insure our shiney new 08 Vectra and a my brand new van (20ks worth ) put together - hence my irritation. My real question is can they offer me a new schedule with the new premium with a start date for 21st May and not give me 14 days to cancel ?

Thanks again for your interest !