Car Insurance Backdated Charges please help

[dmcniven]

Hello,

 

I recently attempted to renew my insurance policy with my existing company. When asked about any convictions, I thought I was reminding them that I still had the 3 I already told them about 11 months prior. When looking at my policy for this year I notice it was not on there...

 

She then came back to me after around 20 mins, and told me that because I hadnt been paying the correct premium for 11 months, that they are going to backdate my policy premium by £1250 !! That is their judgement of 11 months with 3 points, I feel sick and dont know where to turn, I paniced and ended the phone call after trying to plead a case. Can anyone help or advise? I understand that you have to pay for back dated errors or what ever else, but SURELY this amount is unfair? Its like theyve told me straight, £1250, they could of got that figure from anywhere.

[dmcniven]

I did a quotation, with the exact same details firstly with the 3 points, and now without ... the difference over 12 months was only £300, not £1000

[unclebulgaria67]

Sound a lot to me. Usually only 3 point would not add that much to the premium.

 

If you have the renewal notice stating your no claims discount, then I would just shop around with the correct information.

 

If you told them 11 months ago and they did not add, then that is their problem. If they write to you, asking for the premium, send a written complaint to them, saying that you had informed them previously. Presumably the policy contains a requirement to notify them of motoring offences, as soon as you receive the relevant penalty and they will charge you from that point ?

 

Anyway take your business elsewhere and complain to them, if they write to you.

[raydetinu]

have you got confirmation that you told them 11 months ago about the three points, they usually confirm what you told them on the proposal form before acceptance.

[Mwynci]

What are the points for? there can be a big difference to different underwriters depending on their underwriting criteria

 

If the underwriter can demonstrate the increase falls within their guides, and this would beamount the had you declared it, you won't get a lot of sympathy from the FOS.

 

Perhaps it's time to negotiate a figure with the insurer, try to appeal to their better nature (if they have one).

Edited September 20, 2012 by Mwynci

[Mwynci]

this is posted in error, oooops

[Trojan1401]

Provided that you have not made a claim or any potential claim pending then simply move insurers. This is a nasty habit personal lines carriers are getting into as it's very difficult to prove disclosure one way or the other.

I don't believe they can persue you for any additional premium provided there is no claim.

Make sure you check who the actual insurer is though to ensure that they are not from the same group.

[dacouc]

Provided that you have not made a claim or any potential claim pending then simply move insurers. This is a nasty habit personal lines carriers are getting into as it's very difficult to prove disclosure one way or the other.

I don't believe they can persue you for any additional premium provided there is no claim.

Make sure you check who the actual insurer is though to ensure that they are not from the same group.

 

Whether or not you've made a claim is completely irrelevant.

 

When you take out Insurance you are required to disclose all the information the Insurers request, if you do not disclose for any reason and are making a claim the Insurers will investigate why you did not disclose and then use the following guidance from the Ombudsman financial-ombudsman.org.uk/publications/ombudsman-news/46/46_non_disclosure_insurance.htm and then apply the appropriate solution.

 

The premium you pay is based upon the information you supply, Insurance is based on "Utmost Good Faith", if you've not disclosed the correct information the Insurers have not collected the correct premium to reflect the risk of a claim. This is irrespective of whether you make a claim as they carry the same chance of you making a claim at the start of the policy if you've not declared, thus they will seek to remedy the situation

[raydetinu]

altough agreed in principle, the fact of three points would have made little or no difference to the premium; they would have to prove and justify the increased amount for that, they just cant pluck a figure out of the air and say you owe us this much.

if taken out on the phone, ask for them to check recorded call where you gave them the info.

[wonky100]

If you're sure you disclosed the points to them, ask them for a copy of the recording of the telephone conversation from when you took out the insurance.

 

Good luck

[Trojan1401]

Guys I was being practical and suggesting that if there wasn't a claim involved then the insurer should not be persuing the correct "underwriting" rate as the annual policy would have lapsed. I am well versed in underwriting having worked in the industry for the past 25 years. Fortunately I got out of personal lines as "no experience needed" now as it's all automated without the need for actual underwriters who know what they are doing - I can quote from a text book too !!!

[dacouc]

Guys I was being practical and suggesting that if there wasn't a claim involved then the insurer should not be persuing the correct "underwriting" rate as the annual policy would have lapsed. I am well versed in underwriting having worked in the industry for the past 25 years. Fortunately I got out of personal lines as "no experience needed" now as it's all automated without the need for actual underwriters who know what they are doing - I can quote from a text book too !!!

 

For the record you have no more experience than me and I was not quoting from a text book.

 

The reason for my answer was the following post which in effect stated they cannot pursue you for an additional premium for non disclosure if there is not a claim which if the OP took as being fact would mislead them. It's the same principle of a liability client miss their turnover and / or wagerolls at inception and it being picked up on a renewal declaration.

 

I don't believe they can persue you for any additional premium provided there is no claim.