Provident cancelling policies with young named drivers
Discussion
Got home yesterday to find a letter on the doormat from Insure and Go - the broker we insure one of our cars through. It's an old (1995) Clio (1171cc) Oasis, owned, used and insured by my wife as policyholder with my youngest (18+ years) as a named driver. The letter said that it had come to their notice that my wife had access to another vehicle and Provident were cancelling our policy because there was a young 'named' driver and the policyholder had use of another vehicle and it represented an increased risk etc.
Well yes, it would have come to their attention - we told them so when we filled in the proposal form and stated the my son would be a 'frequent user'. Phoned them up and it turns out that Provident are cancelling ALL policies where the policyholder has access to another vehicle and there is a young named driver.
Insure and Go offered to quote for a new policy and I was transferred to another department. They were able to quote fairly quickly because all the details were in their database (so much for the "........... we've only just become aware that you have access to another vehicle .........."
. Paid £392.45 in January this year and the new quote - exactly the same cover - £780.00 Told them, Thanks, but no thanks. 
Shopped around on-line last night and Barclays came up with the best quote - £440. Was a bit worried because most proposal forms ask whether you've ever been refused insurance/had policy cancelled etc. Phoned Barclays, told them the position and was told - Not interested, Not your fault, The insurance company changed their terms and ended the policy. Took out the insurance with them starting midnight tonight.
Phoned Insure and Go this morning to cancel the policy and claim my refund and asked what the total of the refund was - was told £93.25. Queried this amount as I reckoned that simple maths (£392.45 divided by 365 day of the policy multiplied by the number of days left) I was owed around £105.35.
"Ah but you haven't allowed for the Legal Cover - that won't be refunded as you've used it."
Pointed out that I only took out the Legal Cover on the understanding that the policy would run for 12 months and could I speak to a manager please.
Few minutes later the girl (TBF all the staff I spoke to were polite. pleasant and helpful) came back on to say that " As a goodwill gesture, on this occasion ........ they would refund the full cost of the Legal Cover). Ended up it will cost them £113.35 instead of the £105.35 I'd have settled for
Anyway - a warning to any of you that have insurance with Provident, a young named driver on the policy and more than one car. Expect your policy to be cancelled shortly.
BB
Well yes, it would have come to their attention - we told them so when we filled in the proposal form and stated the my son would be a 'frequent user'. Phoned them up and it turns out that Provident are cancelling ALL policies where the policyholder has access to another vehicle and there is a young named driver.
Insure and Go offered to quote for a new policy and I was transferred to another department. They were able to quote fairly quickly because all the details were in their database (so much for the "........... we've only just become aware that you have access to another vehicle .........."
. Paid £392.45 in January this year and the new quote - exactly the same cover - £780.00 Told them, Thanks, but no thanks. Shopped around on-line last night and Barclays came up with the best quote - £440. Was a bit worried because most proposal forms ask whether you've ever been refused insurance/had policy cancelled etc. Phoned Barclays, told them the position and was told - Not interested, Not your fault, The insurance company changed their terms and ended the policy. Took out the insurance with them starting midnight tonight.
Phoned Insure and Go this morning to cancel the policy and claim my refund and asked what the total of the refund was - was told £93.25. Queried this amount as I reckoned that simple maths (£392.45 divided by 365 day of the policy multiplied by the number of days left) I was owed around £105.35.
"Ah but you haven't allowed for the Legal Cover - that won't be refunded as you've used it."
Pointed out that I only took out the Legal Cover on the understanding that the policy would run for 12 months and could I speak to a manager please.
Few minutes later the girl (TBF all the staff I spoke to were polite. pleasant and helpful) came back on to say that " As a goodwill gesture, on this occasion ........ they would refund the full cost of the Legal Cover). Ended up it will cost them £113.35 instead of the £105.35 I'd have settled for
Anyway - a warning to any of you that have insurance with Provident, a young named driver on the policy and more than one car. Expect your policy to be cancelled shortly.
BB
That's an interesting one. Are insurance companies allowed to change their terms like that once they've agreed to provide insurance (since when you took out the policy they had all the material facts that could affect whether they wish to insure or not).
What happens to your no claims situation, do you have to start again with the new insurance co 'cos you didn't build up a full year with Provident?
Personally, I would have re-read the policy and found out if they can yank a policy on short notice. If not, I would have made a complaint.
What happens to your no claims situation, do you have to start again with the new insurance co 'cos you didn't build up a full year with Provident?
Personally, I would have re-read the policy and found out if they can yank a policy on short notice. If not, I would have made a complaint.
Jared_m said:
That's an interesting one. Are insurance companies allowed to change their terms like that once they've agreed to provide insurance (since when you took out the policy they had all the material facts that could affect whether they wish to insure or not).
What happens to your no claims situation, do you have to start again with the new insurance co 'cos you didn't build up a full year with Provident?
Personally, I would have re-read the policy and found out if they can yank a policy on short notice. If not, I would have made a complaint.
What happens to your no claims situation, do you have to start again with the new insurance co 'cos you didn't build up a full year with Provident?
Personally, I would have re-read the policy and found out if they can yank a policy on short notice. If not, I would have made a complaint.
From what I can gather - yes they can withdraw at any time. Who writes the terms and conditions afterall. NCB wasn't a problem as she was entitled to full NCB anyway.
The other downside of course is that next time this policy was due my youngest would have turned 19, time after turned 20 etc and we would have benefitted from a slightly reduced premium each time. As it now he was 18.5 when we've had to renew and subsequently he will be 19.5, 20.5 etc so we'll always be playing catch up.
BB
insurance_jon said:
Is the above car genuinely your wives, or was it a cheaper way of insuring the young driver? Not having a go BTW just checking.
It's a sort of family 'Hack' really - the sort of thing that gets used for her back and forth to work, any one of us to the shops for a pint of milk, take the rubbish to the recycling plant, when one of the other cars is in for a service etc.
My son does use it for back and forth to college on the days he can't get a lift from a friend and he was stated as being a 'Frequent Driver' on the proposal.
BB
Done a bit more research and posted this on several forums as a warning to others.
It appears that Provident have been applying this policy for quite some time and have had several replies from other posters along the lines of;
"Provident have been doing this for some time, Insure and Go should not have quoted you a Provident policy."
From shopping around in the last few days I KNOW that there are still online companies out there who ARE STILL QUOTING on Provident policies online in exactly the same circumstances.
Had quite an argument with one company I phoned to confirm their online quote which over doubled in price when I phoned him to buy. He was insistant that we hadn't declared access to another vehicle/young driver etc on the on line proposal form and I KNEW that I had - was particularly careful in light of our recent experience.
The same company would quite happily have sold me that policy online and no doubt tried to sting me for the extra £350+ when I returned the amended proposal form they send you with the policy.
BB
It appears that Provident have been applying this policy for quite some time and have had several replies from other posters along the lines of;
"Provident have been doing this for some time, Insure and Go should not have quoted you a Provident policy."
From shopping around in the last few days I KNOW that there are still online companies out there who ARE STILL QUOTING on Provident policies online in exactly the same circumstances.
Had quite an argument with one company I phoned to confirm their online quote which over doubled in price when I phoned him to buy. He was insistant that we hadn't declared access to another vehicle/young driver etc on the on line proposal form and I KNEW that I had - was particularly careful in light of our recent experience.
The same company would quite happily have sold me that policy online and no doubt tried to sting me for the extra £350+ when I returned the amended proposal form they send you with the policy.
BB
BigBob said:
My son does use it for back and forth to college on the days he can't get a lift from a friend and he was stated as being a 'Frequent Driver' on the proposal.
Interesting - I insured my wife car with Liverpool Victoria / Frizzell and put the kids on as named drivers. The person I spoke to went out of her way to stress that they mustn't use it for going to college.
I said that's potentially an issue for out older daughter who was teacher training - she has her own car but might want to use ours now and again, and LV said 'oh that's OK', as she has her own car. I asked if it would say in the policy they couldn't use the car for college and LV said no!
So what gives here - can they load verbal conditions on the policy over and above what's written?
Another very weird thing is oldest daughter just called Admiral and asked to add business use to her policy, renewed a couple of months ago. How much extra? They *refunded* her £15!!
Car insurance is a feekin joke as it is, my renewal this year for a Ford Focus ST 170 from NUD was £1746, including the 23% odd for monthly payments (I'm 22 and have had a license for 4 years and have 4 years NCD) so I told them to bog off, and my recent purchase of a new shape Focus ST which is worth twice as much as the old one and is 2 insurance groups higher came to, £800 (including the 23% for monthly payments) with Churchill for the same level of cover and benefits, I ask you where do NUD get their figures from????
A quote from ford insure (you get 7 days free drive away insurance) "I'm sorry sir but according to our data bases you are too young to be driving a car of this type" they did give me the 7 days but said they couldn't offer me a quote (good job as they are underwritten by NUD)
Matt
A quote from ford insure (you get 7 days free drive away insurance) "I'm sorry sir but according to our data bases you are too young to be driving a car of this type" they did give me the 7 days but said they couldn't offer me a quote (good job as they are underwritten by NUD)
Matt
anonymous said:
[redacted]
It's SDP for all users (plus biz use for wifey & me - included as standard), and the Certificate defines SDP as including travel to and from one permanent pace of business duty or study. I assume that means one *each* for each named driver.
I called LV the other day and asked in my younger daughter would be insured to travel to work, and they said 'occasionally'!
GreenV8S said:
Are you sayng you pay 23% more so that you can pay monthly? How can they possibly justify charging that, and why on earth would you pay it?
It's a standard thing for most insurance companies they charge you 23% to pay monthly, except virgin money and a few others, but the insurance with Churchill + the 23% actually works out cheaper than any other insurance company I got a quote from.
Gassing Station | Motoring News | Top of Page | What's New | My Stuff