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Insurance gone up more than double part way through policy


TubbyZ

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Hi,

I’ve had my insurance for just over 2 months and my insurance has just gone up from 135 pounds a month to nearly 400 pounds this month. I’ve logged into my portal and my premium has nearly doubled. Can the insurance company do this? I’ve had no warning of increase and the money has been deducted from my account. I’m insured with Churchill.

 

Cheers in advance

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I'm assuming you're paying a yearly premium split over 12 months with an interest charge applied on top? If so, I don't believe they can change it until renewal time? Unless it's a black box policy in which case they can charge you extra for driving what they would deem to be in a way that makes you more of a risk? Or a PAYG policy.

 

Without more detail on the type of policy you have and what you originally agreed to it's difficult to say, but if it's a normal insurance policy this sounds wrong. 

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This doesn't sound right to me at all. An annual policy is an annual policy, you normally pay for your premium either in one go or 12 equal payments.

 

We need more detail really. As above, is it a black box? What have they said when you spoke to them?

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I am paying an annual premium split over twelve months, I don’t have a black box fitted either. Haven’t rang them yet as I’ve only just realised. Will get in contact tomorrow. Cheers for the replies guys.

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I thought they can’t change it as both parties agreed to it at the start. Best call them, I’ll be watching mine if yours has changed. 

 

Unless you havent told them something when taking out your policy such as convictions, claims etc as I know these will affect your product straight away. 

Edited by LukeA
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25 minutes ago, LRF4N said:

Might be a silly question but was it a new policy 2 months ago or your previous policy brought onto a new car?

It was a new policy. And to answer the person below I’ve delclared everything at the start. Really boggled me

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Sounds like an admin error - you said its £2200 per year paid over 12 months, but you said you paid £135 per month for the first two months then you were paying too little? If it were 12 equal payments it would be closer to £185 per month, maybe someone is manually typing numbers in their end and made a mistake?

 

In any case, refer to your signed contract, it will have the agreed amounts on there that you agreed to pay. It should tally up with that, if not, ring them up, they are more likely to be able to help than here :thumbs:

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If it was £2200 as an annual payment and say interest was an extra 15% on top putting it at say £2550 you would be paying circa £210 per month. If you paid £135 for two months that would put you about £150 behind on payments. Add that to £210 and that puts you up around the £360 mark possibly explaining it? It all sounds like its either completely correct or that there has been a mistake in the admin, either way refer to your payments schedule, if its not matching that then ring them up (dont email them).

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Hi guys,

sorry forgot to mention I paid around a grand off at the start of the policy. I’ve rang them today and it’s because they hadn’t received my no claims discount therefor bumped my premium up to 4400. I sent this through months ago. Resent it today and all should be fine and however doesn’t think I’ll get the money back before Christmas which kind of f**ks me over a bit.  :(

 

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That's odd. I have had the same happen to me ie company claimed not to have certain documents from me but they dropped me a letter outlining a deadline etc. So I could follow up. I have always used specialists like Flux/Knott though who were you using?

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2 hours ago, coldel said:

That's odd. I have had the same happen to me ie company claimed not to have certain documents from me but they dropped me a letter outlining a deadline etc. So I could follow up. I have always used specialists like Flux/Knott though who were you using?

They sent me one letter, to which it was after I had sent the documents in already. On the letter it said ignore if the documents have already been sent so I did. Since then I didn’t receive any subsequent letters however they did say they sent another.

Im with Churchill.

 

cheers

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Just remembered my insurance company wanted a photo of my driving licence but I never got round to it and I only have a month left of insurance. They didn’t change my monthly payments in anyway, I’ll have to double check now :dry:

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Surely they have broken the terms of the direct debit? It was agreed for a set amount for 12 months, not a variable amount such as phone bills etc. If I were you I would be insisting they return the money immediately upon receiving the proof of NCB, especially since it's coming up to Christmas.

 

It really bugs me be companies are happy to take your money in a day or 2 from your account, but when they're asked to return it, it takes them 2 weeks. Crooks!!

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2 hours ago, KyleR said:

Surely they have broken the terms of the direct debit? It was agreed for a set amount for 12 months, not a variable amount such as phone bills etc.

A lot of insurers these days include in their t&c's a continuous payment agreement, essentially means they don't have to collect payment details for any mid-policy changes (which is how they would define this NCB adjustment) such as adding modifications, changing details, and ever more increasingly auto-renewal.

If this is part of the OP's insurers standard ToB then he's actually agreed to them taking the payment.

 

I certainly don't disagree about how refunds are timed to suit the insurers rather than the customer though, sadly this is just a symptom of business though and it's not just limited to insurance.

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