Insurance won't cover new car - Where do I stand?
Discussion
Just been informed by our broker that our underwriter won't cover our new car, moving up from a Mondeo TDDI estate to an Accord Type R. Difference in the premium is around 12% so not massive, but the underwriters are just being stubborn and refusing to cover it.
The broker has offered to waiver cancellation fees and switch us onto a new policy, but offered an uncompetitive rate in the region of 25% on the next best quote. He informed us that should we wish to take our business elsewhere we will be subject to both the brokers and the underwriters cancellation and admin charges, which I am expecting will probably wipe out most of the pro rata £500 refund we would be expecting.
Is there anything I can do about this, as they effectively have me by the balls here. I was under the impression that if the insurer cannot cover a change such as this then they have to issue a full refund for the unused cover?
I'm seeing the expected change in policy price jump from £200 to over £1k. Absolutely fuming!
The broker has offered to waiver cancellation fees and switch us onto a new policy, but offered an uncompetitive rate in the region of 25% on the next best quote. He informed us that should we wish to take our business elsewhere we will be subject to both the brokers and the underwriters cancellation and admin charges, which I am expecting will probably wipe out most of the pro rata £500 refund we would be expecting.
Is there anything I can do about this, as they effectively have me by the balls here. I was under the impression that if the insurer cannot cover a change such as this then they have to issue a full refund for the unused cover?
I'm seeing the expected change in policy price jump from £200 to over £1k. Absolutely fuming!
Kozy said:
Is there anything I can do about this, as they effectively have me by the balls here. I was under the impression that if the insurer cannot cover a change such as this then they have to issue a full refund for the unused cover?
Why should they? They contracted to provide a period of insurance on a particular model and you agreed to pay a price for that cover.Since then, you've changed your car from a diesel family car to something that is a bit warmer. They don't want to cover that model and you didn't ask before buying it, so it is your problem that you now need to insure elsewhere and anything they choose to do on cancellation fees is purely on a goodwill basis.
However, if the insurer has already offered to let you go without a cancellation fee, the broker should only charge their own cancellation.
Let me get this right...
you had insurance on a ford.
you didn't tell them you were changing it and worked out the new premium, or you did tell them and the new policy was ready part way through the Ford insurance?
you bought the new car.
They now refuse to insure you at the rate that was decided before (assuming you talked to them).
Did you get the new quote in writing?
you had insurance on a ford.
you didn't tell them you were changing it and worked out the new premium, or you did tell them and the new policy was ready part way through the Ford insurance?
you bought the new car.
They now refuse to insure you at the rate that was decided before (assuming you talked to them).
Did you get the new quote in writing?
There's plenty of other brokers and underwriters out there.
Cancellation fees aren't usually toooo bad - of the order of a month's insurance from memory and you'd have to pay to switch the policy onto the new car anyway.
Changing car without checking the insurance situation first does seem a bit daft, though?
Cancellation fees aren't usually toooo bad - of the order of a month's insurance from memory and you'd have to pay to switch the policy onto the new car anyway.
Changing car without checking the insurance situation first does seem a bit daft, though?
Sorry worded badly, haven't yet bought it, but half committed to do so.
I had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
I had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
Kozy said:
Sorry worded badly, haven't yet bought it, but half committed to do so.
I had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
I hope you are going through with the buying of the car and sucking this up as a don't assume eff all until you have asked.I had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
Kozy said:
Sorry worded badly, haven't yet bought it, but half committed to do so.
I had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
Insurance is based on risk, the price of the car is only a small part of that. Eg TVR Tuscan can be bought for £15k, but costs much more to insure than a £25k mondeoI had (stupidly) assumed that the fact the price difference between the two cars was actually not that much more that it wouldn't be an issue to insure. Underwriters refused to cover, broker can't offer a competitive quote so I'm forced to take the expensive cover or pay up the charges.
I would understand if we were talking about a doubling in premium, but 12%? FFS.
Doubling of the insurance premium, not the value of the car. The cars are valued at £1000 and £3000 with premiums going from £1250 to £1400. Insurance groups 16 and 17 respectively. On the insurers own terms it's not a massive hike, but the current underwriter just won't cover that type of car, which is not something I was really accounting for. I should have, admittedly.
Just got off the phone and the broker is willing to price match the competitive quote so hopefully we'll have it all sorted now.
Will be buying the car regardless, just trying to minimise the legalised robbery being imposed on me.
Just got off the phone and the broker is willing to price match the competitive quote so hopefully we'll have it all sorted now.
Will be buying the car regardless, just trying to minimise the legalised robbery being imposed on me.
Edited by Kozy on Wednesday 28th March 13:19
Where did you get this 12% figure from? If it's only 12% more then go with that quote. Unfortunately you purchased a years insurance for a particular vehicle. If that insurer don't have a policy that would cover you for the new car then you are lucky they are offering a part refund. Take the refund and buy a new policy. Next time (and I'm guessing here by the premiums you've been offered) don't buy something with an R in the name until you are a bit older 
ThunderSpook said:
Where did you get this 12% figure from? If it's only 12% more then go with that quote. Unfortunately you purchased a years insurance for a particular vehicle. If that insurer don't have a policy that would cover you for the new car then you are lucky they are offering a part refund. Take the refund and buy a new policy.
The broker we are with quoted £1400 up from £1250 (12%), but the issue is that we are half way through a policy and the current underwriter is having none of it so we need a new policy. This in itself is not an issue, it's the double whammy of cancellation charges I have an issue with.ThunderSpook said:
Next time (and I'm guessing here by the premiums you've been offered) don't buy something with an R in the name until you are a bit older
Forgive me, I thought 26 was old enough to own a 200bhp family saloon, what with owning a modified 180bhp Civic since 22 and all... 
I am not sure I am following this.
The broker told you the new car would be £1400 to insure, but the underwriter (as in the actual people who will pay out if you have an accident) are refusing to insure you on the new car. So where did the broker get the figure £1400 from?
Sounds to me like your broker is the issue, not the insurance company, if I follow your posts.
That a side you still only have two choices, pay up or sell up.
The broker told you the new car would be £1400 to insure, but the underwriter (as in the actual people who will pay out if you have an accident) are refusing to insure you on the new car. So where did the broker get the figure £1400 from?
Sounds to me like your broker is the issue, not the insurance company, if I follow your posts.
That a side you still only have two choices, pay up or sell up.
KrazyIvan said:
I am not sure I am following this.
The broker told you the new car would be £1400 to insure, but the underwriter (as in the actual people who will pay out if you have an accident) are refusing to insure you on the new car. So where did the broker get the figure £1400 from?
Sounds to me like your broker is the issue, not the insurance company, if I follow your posts.
That a side you still only have two choices, pay up or sell up.
Broker could only offer a new policy at £1400 with a different UW, old one on on the Mondeo was £1250 which we need to cancel. Not an issue, but as they were originally uncompetitive with Flux who offered under £1100, we would be subject to both UW and broker cancellation charges, which seemed unfair.The broker told you the new car would be £1400 to insure, but the underwriter (as in the actual people who will pay out if you have an accident) are refusing to insure you on the new car. So where did the broker get the figure £1400 from?
Sounds to me like your broker is the issue, not the insurance company, if I follow your posts.
That a side you still only have two choices, pay up or sell up.
Hopefully all sorted now as they can price match my best quote from Flux which makes the cancellation fees moot as they will simply waive them.
I am rubbish at explaining when I am wound up, apologies.
Edited by Kozy on Wednesday 28th March 13:53
I may well be wrong, but I have a hazy recollection that when a company will not underwrite a new car they are obliged to cancel with no cancellation. It might even be in your policy - have a look?
Broker's being cheeky, and in this situation if they don't play the ball, I'd be strongly tempted to take the business away, and then put a formal complaint into the broker, followed by a complaint to the FSA. You might not win, but would have the satisfaction of seeing them drown in paperwork.
Broker's being cheeky, and in this situation if they don't play the ball, I'd be strongly tempted to take the business away, and then put a formal complaint into the broker, followed by a complaint to the FSA. You might not win, but would have the satisfaction of seeing them drown in paperwork.
i had this in the past and my car insurance compnay honoured a full years no claims as id paid yearly with only 9 months of policy being in place. cancelled with no fees. however im not sure how it would work with the broker side of things. i assume you have told them that you can get it cheaper elsewhere. the broker will be able to sacrafice some of there commision to bring the premium down.
surveyor said:
I may well be wrong, but I have a hazy recollection that when a company will not underwrite a new car they are obliged to cancel with no cancellation. It might even be in your policy - have a look?
Bingo, this is what I thought was standard practice. A full pro rata refund for the 5 months remaining cover to take elsewhere was my understanding.All sorted now, broker provided a reasonable quote with no cancellation fees, so happy Kozy.
Now the properly annoying bit, apparently the FSA are stopping brokers taking instalments in the office. No longer can you split the premium over 4 interest free instalments, you either shell up for the whole (extortionate) premium in one go, or enter into a full credit agreement which will probably end up bumping your premium by at least 25%. WHY? What f
king purpose does this restriction impose?!
So much for working to bring the price of insurance down.
Now the properly annoying bit, apparently the FSA are stopping brokers taking instalments in the office. No longer can you split the premium over 4 interest free instalments, you either shell up for the whole (extortionate) premium in one go, or enter into a full credit agreement which will probably end up bumping your premium by at least 25%. WHY? What f
king purpose does this restriction impose?!So much for working to bring the price of insurance down.
Kozy said:
All sorted now, broker provided a reasonable quote with no cancellation fees, so happy Kozy.
Now the properly annoying bit, apparently the FSA are stopping brokers taking instalments in the office. No longer can you split the premium over 4 interest free instalments, you either shell up for the whole (extortionate) premium in one go, or enter into a full credit agreement which will probably end up bumping your premium by at least 25%. WHY? What fking purpose does this restriction impose?!
So much for working to bring the price of insurance down.
Apply for a credit card with 0% interest on purchases and stick it on that. That way you can control the payments.Now the properly annoying bit, apparently the FSA are stopping brokers taking instalments in the office. No longer can you split the premium over 4 interest free instalments, you either shell up for the whole (extortionate) premium in one go, or enter into a full credit agreement which will probably end up bumping your premium by at least 25%. WHY? What f
king purpose does this restriction impose?!So much for working to bring the price of insurance down.
So let me get this right, if you cancelled that policy and went with another policy still through your broker then they wanted a broker cancellation fee?? I think I'd have cancelled and walked out on principle. Just phone the insurance companies direct, they still have to offer you the same policies.
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