Insurance - can someone please explain?
Discussion
I am definitely missing something here so hopefully someone can explain...
My current policy which expires next March has a £1,500 premium (Admiral multicar) which I paid in full.
I am thinking of swapping my car over so I did a quick quote on the website over the weekend. It shows that I'll be saving around 400 quid - good news! or so I thought...
Called today and asked how much it would be for me to swap one car over and apparently I need to pay £50 more! So that's around £450 more out of pocket instead of saving.
Explanation I've got is that quotes differ day to day and I might have got details wrong so whilst on the line I went to the Admiral website and did a quote there and then. The price on my screen is showing around £1100 so I should technically be refunded money! All I got was that I might entered wrong details but I gave her my reference number and she checked and in the end gave me some reason about pricing factor.
Am I losing the plot here? Why is the price so different from the price on the website?
I've also asked about cancellation and with the refund I worked out if I cancel and then try to take out a new policy I will actually be saving more money (that's IF I get the price on screen).
My current policy which expires next March has a £1,500 premium (Admiral multicar) which I paid in full.
I am thinking of swapping my car over so I did a quick quote on the website over the weekend. It shows that I'll be saving around 400 quid - good news! or so I thought...
Called today and asked how much it would be for me to swap one car over and apparently I need to pay £50 more! So that's around £450 more out of pocket instead of saving.
Explanation I've got is that quotes differ day to day and I might have got details wrong so whilst on the line I went to the Admiral website and did a quote there and then. The price on my screen is showing around £1100 so I should technically be refunded money! All I got was that I might entered wrong details but I gave her my reference number and she checked and in the end gave me some reason about pricing factor.
Am I losing the plot here? Why is the price so different from the price on the website?
I've also asked about cancellation and with the refund I worked out if I cancel and then try to take out a new policy I will actually be saving more money (that's IF I get the price on screen).
Presumably the £1500 and £1100 you're quoting are for a full years cover?
How far through the policy year are you?
If you've been insured on the original 2 cars for, say 6 months, you're not due the full £400 back, or whatever the difference is.
If there's a good chunk of the year left I'd be wanting some return of premium, but I guess it comes down to your Ts & Cs.
If they won't budge then I'd cancel and take my custom elsewhere. I'd feel like I was getting mugged.
How far through the policy year are you?
If you've been insured on the original 2 cars for, say 6 months, you're not due the full £400 back, or whatever the difference is.
If there's a good chunk of the year left I'd be wanting some return of premium, but I guess it comes down to your Ts & Cs.
If they won't budge then I'd cancel and take my custom elsewhere. I'd feel like I was getting mugged.
Yes it's all very confusing and she even told me it will definitely be more expensive next year when I renew too!
I just don't get this pricing factor thing, I tried to ask her how did she come out with the £50 extra thing and after some reluctance she gave me the breakdown price (annual) for both cars and the difference is around £200/car vs what's on my screen...
Maybe I called at the wrong time, I will try again tomorrow...
Maybe I will just pay the price difference and see what I get next year when I renew. Just feel cheated at the moment but perhaps there is some kind of factor to calculate balance to pay changing car mid policy (I'm 8 month into current policy).
I just don't get this pricing factor thing, I tried to ask her how did she come out with the £50 extra thing and after some reluctance she gave me the breakdown price (annual) for both cars and the difference is around £200/car vs what's on my screen...
Maybe I called at the wrong time, I will try again tomorrow...
Maybe I will just pay the price difference and see what I get next year when I renew. Just feel cheated at the moment but perhaps there is some kind of factor to calculate balance to pay changing car mid policy (I'm 8 month into current policy).surveyor said:
Because you are tied in to the end of the contract. Insurance Company knows that and therefore takes the piss.
Modern Britain.
Unfortunately I do think that some insurance companies are becoming excessively commercial with such alterations. However conversely the OP insured his car by agreement and paid in full. His choice. Therefore his risk. I do think the insurers concerned should reconsider. I do not think that the OP id being ripped off. I have had 50 years of motoring insurance and never yet been ripped off or short changed by insurers, Every claim settled every policy gave ,e what I wanted, If you change your mind mid contract you must accept the consequences. I would try the insurers again.Modern Britain.
Admiral multicar works out cheap up front but woe betide anyone who wants to make any change mid term.
I know cos I have one,I stick with em tho as they do work out a lump cheaper and it is convenient.
In this instance its easier to pay the nifty then jump ship at renewal time.
When I renew with admiral I get comparison quotes on all cars individually then get Admiral to beat them,they always have so far.
I know cos I have one,I stick with em tho as they do work out a lump cheaper and it is convenient.
In this instance its easier to pay the nifty then jump ship at renewal time.
When I renew with admiral I get comparison quotes on all cars individually then get Admiral to beat them,they always have so far.
I changed my policy recently from a £600 MGZT to a £6000 Porsche Boxster. 4 months left to run on policy.
Cost £45 which I was very happy with.
The trick with insurance and something everyone should do... is go online and do a quick comparison site check every time renewal comes round. Your renewal will be 30% to 50% higher than what is quoted from your existing insurer as they look to maiximise returns from lazy people. Once you've got a decent price online, either phone your current insurer and challenge them to match it... or do what I do and take the best online quote as a matter of principal. f
k 'em, play 'em at their own game.
Oh, and in answer to the OP, it's because they've got you over a barrel. They are balancing the aggro and cost for you to cancel vs how much they can sting you for before you do change. No surprise to me that the multicar policies are like this, it's one of the reasons I've always avoided them, too many eggs in 1 basket.
Cost £45 which I was very happy with.
The trick with insurance and something everyone should do... is go online and do a quick comparison site check every time renewal comes round. Your renewal will be 30% to 50% higher than what is quoted from your existing insurer as they look to maiximise returns from lazy people. Once you've got a decent price online, either phone your current insurer and challenge them to match it... or do what I do and take the best online quote as a matter of principal. f
k 'em, play 'em at their own game. Oh, and in answer to the OP, it's because they've got you over a barrel. They are balancing the aggro and cost for you to cancel vs how much they can sting you for before you do change. No surprise to me that the multicar policies are like this, it's one of the reasons I've always avoided them, too many eggs in 1 basket.
Edited by Piersman2 on Wednesday 18th December 20:54
£45 quid that's definitely a winner there! It's a mystery as to how the premiums are calculated especially when its so different from what you are quoted on screen!
To be fair to Admiral they've always been brilliant for me - fingers crossed I'll get a better price tomorrow.
I am guessing when changing cars on policy it's a one way street; you pay them and not the other way around no matter what car you've changed to. Actually being curious I'll call up to quote changing to a VW Up and see what prices I get :P
To be fair to Admiral they've always been brilliant for me - fingers crossed I'll get a better price tomorrow.
I am guessing when changing cars on policy it's a one way street; you pay them and not the other way around no matter what car you've changed to. Actually being curious I'll call up to quote changing to a VW Up and see what prices I get :P
Last year I needed to add business use (class 1) onto my policy. When I needed to add it in the past, it was just an admin fee (£15 I believe). Phoned up Elephant, who said it would be an extra £94 for the last nine months. Little bit shocked I wanted to check that I 100% needed it.
While I was waiting for a response, I decided to do a new quote, with and without business use. Want to guess the difference? £5 for a whole year.
Needless to say, I wasn't impressed. In the end they did it for an admin fee for £17.50 as a 'goodwill' gesture. Its a shame that they are so cheap.
While I was waiting for a response, I decided to do a new quote, with and without business use. Want to guess the difference? £5 for a whole year.
Needless to say, I wasn't impressed. In the end they did it for an admin fee for £17.50 as a 'goodwill' gesture. Its a shame that they are so cheap
.crazy about cars said:
I am definitely missing something here so hopefully someone can explain...
My current policy which expires next March has a £1,500 premium (Admiral multicar) which I paid in full.
I am thinking of swapping my car over so I did a quick quote on the website over the weekend. It shows that I'll be saving around 400 quid - good news! or so I thought...
Called today and asked how much it would be for me to swap one car over and apparently I need to pay £50 more! So that's around £450 more out of pocket instead of saving.
Explanation I've got is that quotes differ day to day and I might have got details wrong so whilst on the line I went to the Admiral website and did a quote there and then. The price on my screen is showing around £1100 so I should technically be refunded money! All I got was that I might entered wrong details but I gave her my reference number and she checked and in the end gave me some reason about pricing factor.
Am I losing the plot here? Why is the price so different from the price on the website?
I've also asked about cancellation and with the refund I worked out if I cancel and then try to take out a new policy I will actually be saving more money (that's IF I get the price on screen).
£1,500 for 12months vs. £1,100 for 12 months. That's £400 over the year, which is £33 per month. If you policy was due to end in March then you have about 3 months left, so your pro-rata difference is 3x £33, so about £100. If you subtract their admin fee, then I can easily see how you'd end up with not a lot left, but I can't see how they want to charge you anything.My current policy which expires next March has a £1,500 premium (Admiral multicar) which I paid in full.
I am thinking of swapping my car over so I did a quick quote on the website over the weekend. It shows that I'll be saving around 400 quid - good news! or so I thought...
Called today and asked how much it would be for me to swap one car over and apparently I need to pay £50 more! So that's around £450 more out of pocket instead of saving.
Explanation I've got is that quotes differ day to day and I might have got details wrong so whilst on the line I went to the Admiral website and did a quote there and then. The price on my screen is showing around £1100 so I should technically be refunded money! All I got was that I might entered wrong details but I gave her my reference number and she checked and in the end gave me some reason about pricing factor.
Am I losing the plot here? Why is the price so different from the price on the website?
I've also asked about cancellation and with the refund I worked out if I cancel and then try to take out a new policy I will actually be saving more money (that's IF I get the price on screen).
crazy about cars said:
Yes it's all very confusing and she even told me it will definitely be more expensive next year when I renew too!
If one has two cars and starts a multicar policy with two cars (one at the start of the policy and the second joining up after 6 months, for example) then one thinks the relatively-bargainous quote they are offering is a bargain and buys in 
.One is paying for 18 months' insurance - in total - on the two cars. At renewal a year later, one will be paying for 24 months' insurance on the two cars (12 months * 2 cars), so assuming that the 'multicar' insurance company's insurance prices don't drop by an overall average of 25% in the intervening 12 months then one will be paying more next year
.People really do NOT get this disadvantage of 'multicar' policies
.Another disadvantage is that if one then moves away from the 'multicar' ins co then the renewal dates of all the motor vehicles covered on the 'multicar' policy are now the same
and that can be a real financial pain rather than the renewal dates occuring through the year . These two disadvantages aren't mentioned in the ads, oddly enough
...aw51 121565 said:
If one has two cars and starts a multicar policy with two cars (one at the start of the policy and the second joining up after 6 months, for example) then one thinks the relatively-bargainous quote they are offering is a bargain and buys in .
One is paying for 18 months' insurance - in total - on the two cars. At renewal a year later, one will be paying for 24 months' insurance on the two cars (12 months * 2 cars), so assuming that the 'multicar' insurance company's insurance prices don't drop by an overall average of 25% in the intervening 12 months then one will be paying more next year .
People really do NOT get this disadvantage of 'multicar' policies .
Another disadvantage is that if one then moves away from the 'multicar' ins co then the renewal dates of all the motor vehicles covered on the 'multicar' policy are now the same and that can be a real financial pain rather than the renewal dates occuring through the year .
These two disadvantages aren't mentioned in the ads, oddly enough ...
Worked this out when Aviva started to 'steer' me towards a multi-car policy instead of just having named drivers. .One is paying for 18 months' insurance - in total - on the two cars. At renewal a year later, one will be paying for 24 months' insurance on the two cars (12 months * 2 cars), so assuming that the 'multicar' insurance company's insurance prices don't drop by an overall average of 25% in the intervening 12 months then one will be paying more next year
.People really do NOT get this disadvantage of 'multicar' policies
.Another disadvantage is that if one then moves away from the 'multicar' ins co then the renewal dates of all the motor vehicles covered on the 'multicar' policy are now the same
and that can be a real financial pain rather than the renewal dates occuring through the year . These two disadvantages aren't mentioned in the ads, oddly enough
...The thing that flagged me to think about it more was their continual push for taking it. Hard sales tactics only ever result in me saying no.
crazy about cars said:
I only paid in full at start as there was a big saving (circa £200 I think) but I think I'll definitely consider paying monthly now...
I'll try again another day hopefully speak with someone in the UK, worse case scenario I'll just have to bite the bullet...
I am not sure how paying monthly would have helped in this situation. Even if you pay the annual premium on a monthly basis, if you choose to end or amend your policy before renewal time then you will still be charged the same amount as if you paid the premium up front (subject to any additional charge which may have applied for monthly payments).I'll try again another day hopefully speak with someone in the UK, worse case scenario I'll just have to bite the bullet...
Edited by jkh112 on Wednesday 18th December 23:02
LoonR1 said:
crazy about cars said:
I'm pretty sure I've read in the news that someone is to be done to regulate insurance premiums next year.
I don't mind paying for insurance but don't fancy being taken for a ride...
You've not. I don't mind paying for insurance but don't fancy being taken for a ride...
The Competition Commission has come to the conclusion that the market for car insurance is not working well for consumers. Quelle surprise - working well for everybody in the grubby little supply chain though. They will consider what could be done to improve things and report back later in 2014.
Interestingly, one of the things they will look at is how price comparison sites are currently unable to offer different prices due to clauses imposed by the insurers. Removing some of these clauses will increase competition but will possibly make it even harder to understand the market as prices will be even more varied.
jkh112 said:
I am not sure how paying monthly would have helped in this situation. Even if you pay the annual premium on a monthly basis, if you choose to end or amend your policy before renewal time then you will still be charged the same amount as if you paid the premium up front (subject to any additional charge which may have applied for monthly payments).
Yes I know but if I change to a "cheaper" car shouldn't I be refunded on the switch or does it not work that way?Edited by jkh112 on Wednesday 18th December 23:02
I will try calling again at a different time to see what numbers I get. Say I call tomorrow I should then be expecting to pay very close to whatever I was quoted today I hope. Otherwise it's just some random numbers game.
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