Insurance bending the rule slightly?

[bimmer528]

I rang my ins company today to let them know that my for sale BMW has had its plates changed back to the original (private one now on retention)

I explained i had done this as i was selling it and was going to be buying something newer, the lady asked if i had been quoted for the new one (Audi A8 4.2 2004) and i said no, because i know my son who is on the current BMW policy would never be insured on a 4.2. So she asked for the number plate anyway and went through the quote etc. She said usually anybody under 21 cannot be named on a policy with this car (sounds sensible) but would ask one of the underwriters if this could be changed slightly, as it would only be about 2 weeks before my son did turn 21.

She came back after about 4 minutes on hold and said they would allow it (probably at a cost!) but if their rules are there for a reason, how could someone (underwriter or not) bend the rules like this. I can't complain as it would allow an earlier purchase date, but seems a bit daft, seeing as insurers are supposed to be tightening their belts, and cracking down on fraud etc.

[tank slapper]

The underwriters make the rules. They are therefore free to change them or ignore them at will if it is to their benefit.

[bimmer528]

I dont personally see a problem as like she said, its only 2 weeks until he is 21, i just thought company rules are rules.

[tank slapper]

But if it is to their benefit to make an exception in order to get the business, why would they not do it? 2 weeks is hardly a large concession to make on their part.

[davepoth]

tank slapper said:

But if it is to their benefit to make an exception in order to get the business, why would they not do it? 2 weeks is hardly a large concession to make on their part.

Precisely. They would have looked back at the records, seen that your son had been a named driver for a couple of years and hadn't hit anything, and decided he was a low enough risk to go for it, against losing your business.

[Jimmyarm]

What does fraud have to do with it ?

An underwriters job is to assess a risk, decide if they wish to write it or not and then decide at what premium and terms.

At the end of my underwriting days I could pretty much make up terms/premiums as I saw fit (although still with some restrictions on trades that our own reinsurace would not cover).

Think yourself lucky that the person you spoke to actually bothered to ask an underwriter if they would do it, most of them for private vehicle insurance are hidden behind layers of call centre staff

[Jayho]

davepoth said:

tank slapper said:

But if it is to their benefit to make an exception in order to get the business, why would they not do it? 2 weeks is hardly a large concession to make on their part.

Precisely. They would have looked back at the records, seen that your son had been a named driver for a couple of years and hadn't hit anything, and decided he was a low enough risk to go for it, against losing your business.

Not only for your customs now, but in future wouldnt you remember how kindly the insurance company has treated you on this occasion? I know most shoppers would go for the cheapest insurance companies, but if a company has treated me well and were only undercut by £20 I tend to keep to the known company. In my mind it makes perfect logical sense to do this. And if they didnt they run the risk of you saying "FFS, he's gunna be 21 two weeks!!! Thats it, I'm leaving for someone who will insure him!"

[bimmer528]

I guess everybodies replies make perfect sense. I would wait the extra 2 weeks if i had to rather than spite them and change insurer, as i have been with them many years and have never missed payments, made any claims etc, so to them i must appear a good customer, which means they might 'go out their' way, sometimes