Unfair Charge??

[8david5]

I passed my driving test today. My instructor told me I should probably notify my insurance company (InSure) just to make sure that I stay covered.

 

When I called them I was told that if I want to change my policy from reading, 'prov' (provisional license) to 'full' (full license), I would have to pay a 21 pound charge.

 

This struck me as unreasonable and so I haven't paid the charge pending a bit of research! I'm trying to find out whether they can legally ask for this money to amend their database/my policy.

 

Any advice will be very gratefully received.

 

 

David

[Trojan1401]

Agree, this charge is totally unreasonable.

 

Whilst this is a material fact, they do not need to issue additional/replacement documentation.

 

Although I've stated that this info is material, this does not actually need to be disclosed until renewal. I would leave it that you've notified them but write back stating that you refuse to pay this for simply notifing them of something which is literally changing a box on a screen.

 

One point though, there could in fact be a charge under their underwriting criteria for assesing the risk. As a learner driver, you must always have a competent licenced person with you. As you can now legally drive unaccompanied, the insurer may consider you a higher risk & increase the premium. Trust me, they are allowed to do this.

 

Hope this helps

[xrchris]

I know of several insurers who take this position and increase the cost once you have passed your test (it very rarely goes down).

 

Trojan has pretty much hit the nail on the head, as, even though you have passed, these particular insurers regard you as a greater risk at least for the first 12 months.

 

An even weirder peculiarity is with Norwich Union, you can have a licence (provisional or full) for a number of years and receive a discount for how many years you had it. But, if the provisional licence holder then passes his test he loses all this discount! Cant quite work that one out.

[8david5]

Thank you both for your replies.

 

RE the price of the insurance going up, this wasn't mentioned! Hopefully it won't be the case - the 21 pounds is classed simply as an, 'administration fee,' in my policy documents. This is what made me think it was so unreasonable since, like Trojan pointed out, it's just a case of clicking a box on a screen.

[jampot]

As far as I know, you have a duty to keep your insurer up to date with any thing which materially affects the policy and the cover they provide. You've informed them of your change of license status, so your duty is fulfilled. Your duty doesn't, in my opinion, extend to PAYING THEM to keep their own records up to date.