Flaky Insurance Wording

Author
Discussion

AceOfHearts

Original Poster:

5,818 posts

190 months

Thursday 23rd February 2017
quotequote all
Just looking to vent really as I have never come across this before.

I have just cancelled my classic Mercedes insurance after 4.5 months (over £320) and the insurance company are refusing to give any refund due to some contradictory wording in their booklet.

Basically in the cancellation section there is a nice big table saying that if the 'period you have had cover for' has been for less than 6 months you get a 33.3% refund, but in the big wordy paragraph above it the last sentence states 'if you have made a claim, or this insurance has been in force for less than 12 months, we will not give you a refund'

Clear as mud.

I fking hate insurance companies!



Edited by AceOfHearts on Thursday 23 February 22:06

imdeman87

886 posts

106 months

Thursday 23rd February 2017
quotequote all
It's clear that the last sentence should state something like 'or this insurance has been in force for more than 6 months'.

If you value your £100, then submit a formal complaint to Peter James Insurance. I suspect they will resolve the problem in your favour at this point. If not, take it to the financial ombudsman.

Gavia

7,627 posts

90 months

Thursday 23rd February 2017
quotequote all
What's flaky about it? It's pretty clear to me too, no mud involved.

AceOfHearts

Original Poster:

5,818 posts

190 months

Thursday 23rd February 2017
quotequote all
Gavia said:
What's flaky about it? It's pretty clear to me too, no mud involved.
The fact that car insurance is always 12 months, so if you want to cancel it would always be before the 12 months is up. This makes the table of refunds redundant as they will never give you any refund! Can you not see my confusion?

PistonBroker

2,406 posts

225 months

Thursday 23rd February 2017
quotequote all
AceOfHearts said:
Gavia said:
What's flaky about it? It's pretty clear to me too, no mud involved.
The fact that car insurance is always 12 months, so you would have to cancel before the 12 months is up. This makes the table of refunds redundant as they will never give you any refund?
No. This applies to the first year. In subsequent years you'd get the refund.

I appreciate renewing with the same insurer each year can be a novel concept these days!

Gavia

7,627 posts

90 months

Thursday 23rd February 2017
quotequote all
AceOfHearts said:
The fact that car insurance is always 12 months, so if you want to cancel it would always be before the 12 months is up. This makes the table of refunds redundant as they will never give you any refund! Can you not see my confusion?
Not seeing it. If you're in your first year, the they don't do refunds, especially if you've had a claim. If you're in year 2 onwards then you get a refund as per the table, assuming no claim made or likely to be made.

Seems pretty clear to me.

MitchT

15,788 posts

208 months

Thursday 23rd February 2017
quotequote all
Gavia said:
What's flaky about it? It's pretty clear to me too, no mud involved.
Table says 33.3% refund for cover of less than 6 months. Text says no refund for cover that's been in force for less than 12 months. So which is it then? Both can't apply as each contradicts the other!

Gavia

7,627 posts

90 months

Thursday 23rd February 2017
quotequote all
MitchT said:
Gavia said:
What's flaky about it? It's pretty clear to me too, no mud involved.
Table says 33.3% refund for cover of less than 6 months. Text says no refund for cover that's been in force for less than 12 months. So which is it then? Both can't apply as each contradicts the other!
There's no contradiction. See the points made by me and another above yours.

KungFuPanda

4,324 posts

169 months

Friday 24th February 2017
quotequote all
Gavia said:
MitchT said:
Gavia said:
What's flaky about it? It's pretty clear to me too, no mud involved.
Table says 33.3% refund for cover of less than 6 months. Text says no refund for cover that's been in force for less than 12 months. So which is it then? Both can't apply as each contradicts the other!
There's no contradiction. See the points made by me and another above yours.
In that case, the table should say refunds for cancellations within 13 months, 14 months, 15 months etc and not 1 month, 2 month, 3 months...

Gavia

7,627 posts

90 months

Friday 24th February 2017
quotequote all
KungFuPanda said:
In that case, the table should say refunds for cancellations within 13 months, 14 months, 15 months etc and not 1 month, 2 month, 3 months...
The section is all under point 10, so continuous. Changing the months as you're suggesting would confuse matters and make the issue around the first 12 months far less clear.

KungFuPanda

4,324 posts

169 months

Friday 24th February 2017
quotequote all
I suppose so. It's not as clear cut as you say though.

AceOfHearts

Original Poster:

5,818 posts

190 months

Friday 24th February 2017
quotequote all
It says nothing of renewals though and surely even if you renew it is still a new 12 month policy and not a continuation

AceOfHearts

Original Poster:

5,818 posts

190 months

Friday 24th February 2017
quotequote all
I will add as well that i have never had such a short insurance policy with absolutely zero refund. Normally they are pretty good and just take an admin fee.

Should have paid monthly but i wasnt expecting to sell the car so soon rolleyes

Squishey

567 posts

127 months

Friday 24th February 2017
quotequote all
PJ online policy wording said:
10. You may cancel this insurance at any time by telling us in writing and sending back your certificate of motor insurance. If you cancel within 14 days of receiving this document and you have not made a claim, you will receive a refund as explained on the inside front cover. If you cancel after this period, you have not made a claim and will not be making a claim, and you have not gone over any mileage limit, we will work out the charge for the time you have been covered by your insurance (to the date we receive your certificate), and the refund you will receive, in line with the table below. If you have made a claim, we will not give you
a refund.
confused

littleredrooster

5,523 posts

195 months

Friday 24th February 2017
quotequote all
AceOfHearts said:
Should have paid monthly but i wasnt expecting to sell the car so soon rolleyes
What difference would that have made? You have entered into an annual contract of insurance and would have still been liable for the full premium payable.

How do so many people not 'get' insurance contracts on here?

TwigtheWonderkid

43,248 posts

149 months

Friday 24th February 2017
quotequote all
Gavia said:
Not seeing it. If you're in your first year, the they don't do refunds, especially if you've had a claim. If you're in year 2 onwards then you get a refund as per the table, assuming no claim made or likely to be made.

Seems pretty clear to me.
^^^THIS. It couldn't be clearer.

TwigtheWonderkid

43,248 posts

149 months

Friday 24th February 2017
quotequote all
KungFuPanda said:
In that case, the table should say refunds for cancellations within 13 months, 14 months, 15 months etc and not 1 month, 2 month, 3 months...
What tripe. First 12 months, second 12 months etc. That's how everyone thinks about insurance. First year of the policy, second year of the policy, third year of the policy. It's absolutely standard wording. I've never heard anyone who is 4 months into the third year of their policy say "I'm in my 28th month."

TooLateForAName

4,727 posts

183 months

Friday 24th February 2017
quotequote all
Seems clear to me, but I do take your point.

I suspect that if you make a formal complaint referencing the wording and telling them that you will be taking it to the ombudsman will get you a refund (but maybe dont expect them to deal with you again?)

AceOfHearts

Original Poster:

5,818 posts

190 months

Friday 24th February 2017
quotequote all
No threats but I explained to them that I found it misleading and got this reply:


'Thank you for your email.

We have looked into this further and have agreed on this occasion we will allow a refund.

Usually in the first 12 months of a policy there is no refund.

Please note we have allowed this as a gesture of good will and is not our normal practice.

Please see above a copy of the letter confirming the refund.

Kind Regards'


thumbup

And i'm not worried about that as I wont be using them again. This is the first time I have ever come across a zero refund policy for cancellation and will definitely check the fine print more thoroughly in the future!

Looks like I have divided opinion with this one though, even though i'm sure many others would not be happy paying a full years premium for 4 months cover.

Edited by AceOfHearts on Friday 24th February 09:57

TwigtheWonderkid

43,248 posts

149 months

Friday 24th February 2017
quotequote all
AceOfHearts said:
Looks like I have divided opinion with this one though, even though i'm sure many others would not be happy paying a full years premium for 4 months cover.

Edited by AceOfHearts on Friday 24th February 09:57
As it was a classic car policy, was it done on a limited mileage basis? If so, I wouldn't expect any refund for cancellation, as you may have used your entire mileage allowance during the months the policy was running.

Many classis car owners have policies for 1500 or 3000 miles, that they use up during the summer only. If you take out a limited mileage policy in May, and use up the mileage in June-Aug, why should you get any money back cancelling in September? Your exposure to risk is not much different from someone else doing less mileage a month spread out over the whole year.