Insurer changing excess terms mid policy
Discussion
Changed my wife’s car last September and paid for a mid term adjustment on her insurance policy - quite a weighty increase as she moved from a Mini to a Discovery.
The details were checked on a call and documentation updated as you’d expect, all seemed great. Roll on 4 months and I’ve received an email saying the compulsory excess is being hiked from £150 to £5000 “as the vehicle is a Land Rover”
Had anyone experienced this before? There’s only 3 months remaining on the policy so it’s not a huge issue to cancel and reinsure elsewhere but on principle it doesn’t seem right that the terms can be adjusted without notice!
The details were checked on a call and documentation updated as you’d expect, all seemed great. Roll on 4 months and I’ve received an email saying the compulsory excess is being hiked from £150 to £5000 “as the vehicle is a Land Rover”
Had anyone experienced this before? There’s only 3 months remaining on the policy so it’s not a huge issue to cancel and reinsure elsewhere but on principle it doesn’t seem right that the terms can be adjusted without notice!
No idea about them being allowed to do it, but given they are so highly regulated I'd guess they are. It won't be Dave from accounts doing it on a whim.
This will be the reason.
https://www.fleetnews.co.uk/news/jlr-takes-action-...
We're into the millions of value stolen just in my force and neighbouring.
This will be the reason.
https://www.fleetnews.co.uk/news/jlr-takes-action-...
We're into the millions of value stolen just in my force and neighbouring.
von vardo said:
Changed my wife’s car last September and paid for a mid term adjustment on her insurance policy - quite a weighty increase as she moved from a Mini to a Discovery.
The details were checked on a call and documentation updated as you’d expect, all seemed great. Roll on 4 months and I’ve received an email saying the compulsory excess is being hiked from £150 to £5000 “as the vehicle is a Land Rover”
Had anyone experienced this before? There’s only 3 months remaining on the policy so it’s not a huge issue to cancel and reinsure elsewhere but on principle it doesn’t seem right that the terms can be adjusted without notice!
I cannot help about the mid-term adjustment. However I own and run a fleet of vehicles within my business and we have a fleet insurance policy of ‘any driver on any vehicle in our custody and control’ which is in-effect, a blanket policy similar to a motor trade policy. I’ve done the renewal for 2025 and they have EXCLUDED any Land Rover product from our 2025 fleet policy. Not even a higher excess - just a clear message to not even think about touching one…The details were checked on a call and documentation updated as you’d expect, all seemed great. Roll on 4 months and I’ve received an email saying the compulsory excess is being hiked from £150 to £5000 “as the vehicle is a Land Rover”
Had anyone experienced this before? There’s only 3 months remaining on the policy so it’s not a huge issue to cancel and reinsure elsewhere but on principle it doesn’t seem right that the terms can be adjusted without notice!
It’s not a problem for me as we don’t fleet any LR product nor would we ever have the need to do so I’m not bothered. But it’s saying something when we’d be covered on a Rolls Royce Phantom at £350k without question but not on a six year old Evoque at £15k for some bizarre reason.
Edited by ADJimbo on Saturday 11th January 19:20
It's highly irregular. A contract term that allowed them to alter the contract terms unilaterally during the period of the policy would almost certainly be classed as an unfair contract term.
Otherwise, what's the point of a quote at al. They quote you £500 with a £100 xs for a year, and because their circumstances change, and claims are worse than they expected, they increase the premium or excess or both mid term??? Can you do the same? "yeah, I know I agreed £500 with a £100 xs, but circumstances have changed and I've lost my job. So I'm reducing my xs to £50 as that's all I can afford now?"
I'd email them to ask then where in the contract it says they can change agreed terms mid term? But what it probably will say in the contract is that they can terminate with 7 days notice. So you might not want to rock the boat.
Otherwise, what's the point of a quote at al. They quote you £500 with a £100 xs for a year, and because their circumstances change, and claims are worse than they expected, they increase the premium or excess or both mid term??? Can you do the same? "yeah, I know I agreed £500 with a £100 xs, but circumstances have changed and I've lost my job. So I'm reducing my xs to £50 as that's all I can afford now?"
I'd email them to ask then where in the contract it says they can change agreed terms mid term? But what it probably will say in the contract is that they can terminate with 7 days notice. So you might not want to rock the boat.
ADJimbo said:
I cannot help about the mid-term adjustment. However I own and run a fleet of vehicles within my business and we have a fleet insurance policy of ‘any driver on any vehicle in our custody and control’ which is in-effect, a blanket policy similar to a motor trade policy. I’ve done the renewal for 2025 and they have EXCLUDED any Land Rover product from our 2025 fleet policy. Not even a higher excess - just a clear message to not even think about touching one…
It’s not a problem for me as we don’t fleet any LR product nor would we ever have the need to do so I’m not bothered. But it’s saying something when we’d be covered on a Rolls Royce Phantom at £350k without question but not on a six year old Evoque at £15k for some bizarre reason.
If their stats tell them a £15K Evoque is likely to cost them £15K in a theft claim, but a £350K Rolls is unlikely to cost them anything, then that's hardly a bizarre reason. It’s not a problem for me as we don’t fleet any LR product nor would we ever have the need to do so I’m not bothered. But it’s saying something when we’d be covered on a Rolls Royce Phantom at £350k without question but not on a six year old Evoque at £15k for some bizarre reason.
Edited by ADJimbo on Saturday 11th January 19:20
Not the same but my new insurers tried to take an extra £70 odd out of my account yesterday. Only reason I caught it was a notice on my phone. Rang them and they claimed they'd sent me an email on 3rd Jan. Checked and no email. They say they rang my previous insure who told them I had 6 years no claims, not 7. I rang previous insurer, 7 years ncd, not 6! WTF! They sent me an email with attached goodbye letter they'd sent out on the 3rd, which mr postman hasn't delivered yet 
confirming 7 years. Forwarded to new insurer, "oops, sorry, we'll credit £70 odd back to you in the next 3-5 days!" Cheeky Gits!
confirming 7 years. Forwarded to new insurer, "oops, sorry, we'll credit £70 odd back to you in the next 3-5 days!" Cheeky Gits!Had they informed you that it was changed at the same time as the vehicle - ie contract conditions for insuring the LR?
This would be reasonable.
If the vehicle change was agreed and the excess change was a separate, later unilateral change, then that would be surprising.
Consumer duty applies to both parties in an insurance contract.
This would be reasonable.
If the vehicle change was agreed and the excess change was a separate, later unilateral change, then that would be surprising.
Consumer duty applies to both parties in an insurance contract.
In simple terms, at the point the contract was entered into, the terms of cover are fixed for the term of insurance. General insurers are regulated by the FCA and must abide by the Insurance Codes of Business ICOBS. https://www.handbook.fca.org.uk/handbook/ICOBS/3/ which sets out standards of communications required prior to inception of the contract (key terms and conditions), in essence to treat customers fairly. Also if cover was not arranged face to face, the Annex 2 distance selling provisions further provide consumer protection....and as a private individual you will be classed as a consumer. So for the remainder of the unexpired term, you can refuse the unilateral change and threaten to invoke the formal complaints policy in the firm, which then would give rights to refer to FOS.
On renewal, I suspect you will consider trading the LR for something more incurable.
On renewal, I suspect you will consider trading the LR for something more incurable.
Assuming there has been absolutely no changes in your circumstances since the policy was effected any Insurer subsequently attempting to change terms is not upholding their part of the contract.
They can change terms at renewal but otherwise they are going to run foul of the “TCF “ principle or whatever it’s replacement is called.
Equally then cancelling your policy should you object to the mid term excess increase will also see them guilty of the same thing.
Personally I would be pointing this out to them and see what they say before you doing anything else.
It is surprising behaviour mid term though.
They can change terms at renewal but otherwise they are going to run foul of the “TCF “ principle or whatever it’s replacement is called.
Equally then cancelling your policy should you object to the mid term excess increase will also see them guilty of the same thing.
Personally I would be pointing this out to them and see what they say before you doing anything else.
It is surprising behaviour mid term though.
Had the excess been changed along with the premium when the vehicle was changed then that would make sense, but to do it at some other random time seems out of order. Firstly, check the Ts & Cs and see if they allow for this and, if they do, start looking on comparison sites for a new insurer in case you need to bail.
Sometimes your current insurer is not the best one for a new vehicle. My current insurer charges peanuts for my old E36 3 Series but for an F32 4 Series they quote more than double the cheapest I can find.
Sometimes your current insurer is not the best one for a new vehicle. My current insurer charges peanuts for my old E36 3 Series but for an F32 4 Series they quote more than double the cheapest I can find.
Edited by MitchT on Sunday 12th January 14:16
Tony1963 said:
And I suppose all the Range Rover drivers will be terrified of hitting other cars while driving in their typical aggressive fashion. Could be better for all of us!
Well said! It definitely seems Range Rover (and Tesla!) drivers have replaced BMW drivers as the most aggressive drivers on the road!UK_Scat_Pack said:
Tony1963 said:
And I suppose all the Range Rover drivers will be terrified of hitting other cars while driving in their typical aggressive fashion. Could be better for all of us!
Well said! It definitely seems Range Rover (and Tesla!) drivers have replaced BMW drivers as the most aggressive drivers on the road!TwigtheWonderkid said:
It's highly irregular. A contract term that allowed them to alter the contract terms unilaterally during the period of the policy would almost certainly be classed as an unfair contract term.
Otherwise, what's the point of a quote at al. They quote you £500 with a £100 xs for a year, and because their circumstances change, and claims are worse than they expected, they increase the premium or excess or both mid term??? Can you do the same? "yeah, I know I agreed £500 with a £100 xs, but circumstances have changed and I've lost my job. So I'm reducing my xs to £50 as that's all I can afford now?"
I'd email them to ask then where in the contract it says they can change agreed terms mid term? But what it probably will say in the contract is that they can terminate with 7 days notice. So you might not want to rock the boat.
Presumably if this was permitted without allowing you to cancel, they could just increase the excess to £20k, £50k or more which would be insane. Otherwise, what's the point of a quote at al. They quote you £500 with a £100 xs for a year, and because their circumstances change, and claims are worse than they expected, they increase the premium or excess or both mid term??? Can you do the same? "yeah, I know I agreed £500 with a £100 xs, but circumstances have changed and I've lost my job. So I'm reducing my xs to £50 as that's all I can afford now?"
I'd email them to ask then where in the contract it says they can change agreed terms mid term? But what it probably will say in the contract is that they can terminate with 7 days notice. So you might not want to rock the boat.
Alex Z said:
Presumably if this was permitted without allowing you to cancel, they could just increase the excess to £20k, £50k or more which would be insane.
The insurer changing the terms mid contract, seems very dubious to me, but the idea of a massive excess for theft only seems quite sensible. There have been several PH discussions around the astonishing cost of LR insurance due to the high theft rate, and I was wondering why insurers were not offering policies that covered everything except theft. By specifying very high excesses, this is what they have effectively done.
A LR owner can (presumably?) now choose to get insured at reasonable cost, as long as they take responsibility for theft prevention. Anyone with off-road parking could do this fairly easily with lockable bollards or gates. On road, things like wheel clamps, steering locks, immobilisers, trackers.
Foss62 said:
Alex Z said:
Presumably if this was permitted without allowing you to cancel, they could just increase the excess to £20k, £50k or more which would be insane.
The insurer changing the terms mid contract, seems very dubious to me, but the idea of a massive excess for theft only seems quite sensible. There have been several PH discussions around the astonishing cost of LR insurance due to the high theft rate, and I was wondering why insurers were not offering policies that covered everything except theft. By specifying very high excesses, this is what they have effectively done.
A LR owner can (presumably?) now choose to get insured at reasonable cost, as long as they take responsibility for theft prevention. Anyone with off-road parking could do this fairly easily with lockable bollards or gates. On road, things like wheel clamps, steering locks, immobilisers, trackers.
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