Author Topic: Insurance shock.  (Read 21366 times)

Lord Voltermore

  • Approved Member
  • *
  • Posts: 1928
  • Country: gb
  • My Honda: 2021 Jazz EX
Insurance shock.
« on: February 01, 2022, 01:55:38 PM »
When I  got my new Mk 4 in October I was able to change the remaining 5 months of my Yaris policy to the Jazz for a small extra premium.

Just had the 'renewal' from Hastings Direct   . I was expecting a change in price  , but not this -

"Sorry, you won't be able to renew with us this year
We've searched our panel of insurers to find you a renewal price for your car policy, but none of them have been able to offer one so your policy will end on 1st March 2022. .  Don't worry, even though we can't offer you a price that doesn't mean other insurers won't. Try checking out some price comparison websites to see what options are available to you. "

I was thinking of changing anyway, and sure enough  got cover quite easily elsewhere at a price I'm happy with. 

Whats going on?  My circumstances havnt changed, no claims.   Can the new FCA  renewal quote changes really have such an effect that a company as large as Hastings Direct cannot find an insurer willing to offer a price to a low risk driver on a comparatively modest car?
I suspect there are prices but so high they are an embarrassment, Hastings would rather lose your business for a while   than provoke outrage at their prices.

Anyone had anything similar?  Is it just on the Mk4?
  Trust a dog to guard your house  , but not your sandwich

aphybrid

  • Approved Member
  • *
  • Posts: 474
  • Country: gb
  • Fuel economy: 54.46
  • My Honda: Jazz Crosstar Shiny Grey
Re: Insurance shock.
« Reply #1 on: February 01, 2022, 02:37:10 PM »
Maybe they are about to go bust?

NFU very good, £330 approx, no claims 73yo driver, car 50/50 drive/garage parking countryside village

Rory

  • Approved Member
  • *
  • Posts: 657
  • Country: gb
  • My Honda: 2009 1.4 EX Manual - gone to a family member. Still look after it, and a 2014 EX driven by daughter.
Re: Insurance shock.
« Reply #2 on: February 01, 2022, 02:51:58 PM »
Seems they have form for doing this: https://forums.moneysavingexpert.com/discussion/5622172/

I just 'renewed' wife's car with LV=.  They did quote for renewal, premium was bonkers.  First call to them they wouldn't budge.  Called again with a couple of changes and they slightly dropped the price but then said "of course, you've got one of our very old policies - try doing a new quote."   Did that - looks identical policy - over £100 less.   Some LV= customers have reported being told they're getting a new policy at the lower price, but when the Certificate arrives it's the same policy number as they had before.  Methinks there's something afoot!

TnTkr

  • Approved Member
  • *
  • Posts: 650
  • Country: fi
  • My Honda: 2019 GK5 Jazz 1.5 Dynamic 6MT
Re: Insurance shock.
« Reply #3 on: February 01, 2022, 03:03:14 PM »
I've been reading this forum for couple of years now, but still caannot understand your (UK) insurence system with companies, insurers and brokers. I would be glad to get some explanation, if you don't mind.

In Finland we have insurance companies, which cannot deny giving insurance for any road legal vehicle. There is a mandatory insurance covering any damage to other vehicles or structures as well all personnel damages. And then optional insurance to cover own vehicle damage. YEs, there are price differences between companies and depending the area you are living and in some companies also the age of vehicle owner. But still same insurance is valid no matter who is driving the car.

Kremmen

  • Approved Member
  • *
  • Posts: 4574
  • Country: england
  • Civinfo interloper
  • Fuel economy:
  • My Honda: MY22 Jazz EX
Re: Insurance shock.
« Reply #4 on: February 01, 2022, 03:25:54 PM »
I have a friend who is an insurance broker, he sent me this a while back :

Quote
A client of ours asks can we help his neighbour who is with Hastings and and do a quote for his car. He is 85. I say well we can try but not easy at 85. So they come in. The old guy gives me his papers which shows a renewal date of August 2021. I say this only started 4 months ago. He says yes but he can't get through to them. I ask why is he trying to and he says because he has a new car. Didn't tell me that! So I ask him what car it is. He doesn't know! Has to go back to find out. Comes back and tells me. 13 yr old Suzuki. I run through a quote. He says clean record. No-one quoting. I say I will try and get through to Hastings for you. Now this is what makes me angry. When you call you get messages saying go online. Only call if you have to. I wait listening to 10 minutes of recorded messages before I even get the chance to press 1, 2 etc. There should be bloody rules about this nonsense. Eventually someone picks up who sounds like he works on a farm. He grunts a few things then puts me on to blaring hold music. Then someone else picks up so I explain their client is here and wants to change his car. He goes through the security questions and then tells me its the wrong department !! He then puts me through to someone else who sounds foreign and very bored. This is where the fun really starts.

I tell him I have a client of theirs here and he wants to change his car. He again goes through all the security questions then I give him the car details. He mutters something about a claim and wanders off. What claim? I ask the 85yr old and he says he hit another car! He never told me that either! When? He can't remember. Maybe couple of months. The Hastings guy comes back. He can't insure the car!!! What? Why? He can't say. So what happens now. He has to cancel the policy. But as there has been a claim he will have to pay the full premium too! So now I have the job of telling an 85yr old that they can't insure his car and want him to pay a few hundred quid as well as paying for a new policy with someone else !!

The Hastings guy then says he will email it to the client. I say how when he doesn't have a computer (told me he did it by phone) The guy says he has an email address and reads it out to me. I ask client who this is and he says its his daughter! Seems she set it up on computer 3 years ago ! By now I had had enough. I told him to go back to his daughter and tell her to sort it all out as she had done it originally.

How anyone gets on with "service" like this is beyond me. Absolute disgrace. This is what the regulators should be concentrating on.
Let's be careful out there !

Jocko

  • Approved Member
  • *
  • Posts: 9356
  • Country: scotland
  • Fuel economy:
  • My Honda: Died from rust.
Re: Insurance shock.
« Reply #5 on: February 01, 2022, 03:55:56 PM »
I've been reading this forum for couple of years now, but still caannot understand your (UK) insurence system with companies, insurers and brokers. I would be glad to get some explanation, if you don't mind.

In Finland we have insurance companies, which cannot deny giving insurance for any road legal vehicle. There is a mandatory insurance covering any damage to other vehicles or structures as well all personnel damages. And then optional insurance to cover own vehicle damage. YEs, there are price differences between companies and depending the area you are living and in some companies also the age of vehicle owner. But still same insurance is valid no matter who is driving the car.
Here we have insurance companies but then we have Insurance brokers. They are the middlemen who compare the prices of companies to get you the best deal(!) or more likely their best commission. The price depends on the area you live in, your age, your vehicle and even your occupation. Unless you specify otherwise the policy is usually named driver only. If someone else drives your car they are uninsured unless they have their own cover. If you permit someone uninsured to drive your car then you are committing an offence and your insurer won't pay for any damage done to the car.

Koliwood

  • Registered Member
  • *
  • Posts: 1
  • Country: gb
  • My Honda: 2018 Sport Navi
Re: Insurance shock.
« Reply #6 on: February 01, 2022, 04:35:31 PM »
I've been reading this forum for couple of years now, but still caannot understand your (UK) insurence system with companies, insurers and brokers. I would be glad to get some explanation, if you don't mind.

In Finland we have insurance companies, which cannot deny giving insurance for any road legal vehicle. There is a mandatory insurance covering any damage to other vehicles or structures as well all personnel damages. And then optional insurance to cover own vehicle damage. YEs, there are price differences between companies and depending the area you are living and in some companies also the age of vehicle owner. But still same insurance is valid no matter who is driving the car.
I am married to a Fin and understand that in Finland it is the car that is insured. What I don't understand is that whenever we visit friends and family in Finland we can borrow anyone's car and the insurance will cover whoever is driving with no questions asked what our driving record is like. Even our sons are OK to drive their uncles high spec volvo with no questions asked. In the UK they would not be allowed near a car like that because of their age.
I have asked a few times but have only received a vague answer that "it's the car that's insured'
Incidentally it seems to be the same in New Zealand.

Pine

  • Approved Member
  • *
  • Posts: 408
  • Country: gb
  • My Honda: Honda IZY Lawnmower
Re: Insurance shock.
« Reply #7 on: February 01, 2022, 07:46:32 PM »
Seems they have form for doing this: https://forums.moneysavingexpert.com/discussion/5622172/

I just 'renewed' wife's car with LV=.  They did quote for renewal, premium was bonkers.  First call to them they wouldn't budge.  Called again with a couple of changes and they slightly dropped the price but then said "of course, you've got one of our very old policies - try doing a new quote."   Did that - looks identical policy - over £100 less.   Some LV= customers have reported being told they're getting a new policy at the lower price, but when the Certificate arrives it's the same policy number as they had before.  Methinks there's something afoot!
I am insured with LV and have had exactly the same experience.  When I compared the wording of the old policy against the new policy I couldn't see any difference.

JimSh

  • Approved Member
  • *
  • Posts: 1334
  • Country: scotland
  • My Honda: 2014 Honda Jazz ES Plus
Re: Insurance shock.
« Reply #8 on: February 01, 2022, 08:11:53 PM »
I thought there was supposed to be a recent law guaranteeing existing customers the same terms as new customers.
https://www.moneysavingexpert.com/news/2021/05/-insurers-banned-charging-existing-customers-more--new--loyalty-/

Oops Just noticed this has been covered in another thread
https://clubjazz.org/forum/index.php?topic=14114.0
« Last Edit: February 01, 2022, 08:14:32 PM by JimSh »

DAN@ADRIAN FLUX

  • Trader
  • Approved Member
  • *****
  • Posts: 136
Re: Insurance shock.
« Reply #9 on: February 01, 2022, 08:12:44 PM »
Hi.
Please feel free to give us a try for insurance if you wish.
Regards,
Dan.

ColinS

  • Approved Member
  • *
  • Posts: 899
  • Country: england
  • My Honda: 2018 HR-V EX-Navi CVT
Re: Insurance shock.
« Reply #10 on: February 01, 2022, 08:18:16 PM »
I thought there was supposed to be a recent law guaranteeing existing customers the same terms as new customers.
https://www.moneysavingexpert.com/news/2021/05/-insurers-banned-charging-existing-customers-more--new--loyalty-/

Oops Just noticed this has been covered in another thread
https://clubjazz.org/forum/index.php?topic=14114.0

Yes Jim, and I think their answer is to not offer a policy at all.  The OP should report them to trading standards.

TnTkr

  • Approved Member
  • *
  • Posts: 650
  • Country: fi
  • My Honda: 2019 GK5 Jazz 1.5 Dynamic 6MT
Re: Insurance shock.
« Reply #11 on: February 02, 2022, 05:32:11 AM »
I've been reading this forum for couple of years now, but still caannot understand your (UK) insurence system with companies, insurers and brokers. I would be glad to get some explanation, if you don't mind.

In Finland we have insurance companies, which cannot deny giving insurance for any road legal vehicle. There is a mandatory insurance covering any damage to other vehicles or structures as well all personnel damages. And then optional insurance to cover own vehicle damage. YEs, there are price differences between companies and depending the area you are living and in some companies also the age of vehicle owner. But still same insurance is valid no matter who is driving the car.
I am married to a Fin and understand that in Finland it is the car that is insured. What I don't understand is that whenever we visit friends and family in Finland we can borrow anyone's car and the insurance will cover whoever is driving with no questions asked what our driving record is like. Even our sons are OK to drive their uncles high spec volvo with no questions asked. In the UK they would not be allowed near a car like that because of their age.
I have asked a few times but have only received a vague answer that "it's the car that's insured'
Incidentally it seems to be the same in New Zealand.
It's exactly like that: It's the car that has to be insured. Every person with valid driving license is allowed to drive it and is covered with insurance. Insurance company can decline paying the damage only if the driver has been drunken or in drugs.
For me the UK system sounds very peculiar and tortuous. I mean causing a lot of trouble to car owners and has plenty of minefields.
« Last Edit: February 02, 2022, 05:40:10 AM by TnTkr »

Kremmen

  • Approved Member
  • *
  • Posts: 4574
  • Country: england
  • Civinfo interloper
  • Fuel economy:
  • My Honda: MY22 Jazz EX
Re: Insurance shock.
« Reply #12 on: February 02, 2022, 06:17:18 AM »
I've been looking around and it seems a lot of insurance providers are still operating a loyal customer price hike with LV being the worst but Hastings also mentioned in dispatches along with Halifax.

I'm with LV so I'm expecting to have to change later this year unless things change.
Let's be careful out there !

ColinS

  • Approved Member
  • *
  • Posts: 899
  • Country: england
  • My Honda: 2018 HR-V EX-Navi CVT
Re: Insurance shock.
« Reply #13 on: February 02, 2022, 07:28:37 AM »
I'm with LV so I'm expecting to have to change later this year unless things change.

I'm also with LV.  Every year I have to go through the dance with them.  Get an online quote from them, phone them up and they as good as price match the online cost.

I was hoping that this would stop with the new regulations as quoted above by JimSh and previously by me at https://clubjazz.org/forum/index.php?topic=14114.0
« Last Edit: February 02, 2022, 07:31:35 AM by ColinS »

Lord Voltermore

  • Topic Starter
  • Approved Member
  • *
  • Posts: 1928
  • Country: gb
  • My Honda: 2021 Jazz EX
Re: Insurance shock.
« Reply #14 on: February 02, 2022, 08:27:08 AM »

It's exactly like that: It's the car that has to be insured. Every person with valid driving license is allowed to drive it and is covered with insurance. Insurance company can decline paying the damage only if the driver has been drunken or in drugs.
For me the UK system sounds very peculiar and tortuous. I mean causing a lot of trouble to car owners and has plenty of minefields.
Yes its typically British. Complicated and poorly enforced.
The  system in Finland  requires government intervention forcing Insurers to give a price  thats an average for every one. It benefits high risk drivers and cars, but  lower risk drivers pay more than they might.  But its still a good system.  They have something similar in Bulgaria  . Every registered car must have a minimum insurance sticker. Easily spotted an enforced.  Issued by private insurance companies but at a regulated price.   If the car is uninsured for ,I think 3 months' the car registration is  cancelled and they have to go to the police to get a new registration plate.  If you want fully comprehensive insurance you still have to buy the minimum sticker, but buy an extra top up policy,sometimes from a different  insurance company.     But there were complications.  The minimum cover is valid in every EU country.  They found thousands of Romanians and Greeks were running cars registered and cheaply insured in Bulgaria  on a permenant basis in their own countries with lots of insurance claims.   ;D

Reality is some drivers, cars , locations etc are a much higher risk for insurers.  They want to take money with the lowest possible risk  , or might gamble on a  risky driver for a bigger  premium.

In the UK all registered motor vehicles  are assumed to be in use  and must be Insured. The Insurance Industry updates a national database of the vehicle currently insured.  If you take the car off the road onto private land its the registered keepers responsibility to regularly inform the  authorities it is off road (including public places such as car parks) and need not be insured. (SORN  - statutory off road notification)   Needless to say  this system is widely ignored or abused, and the UK has many uninsured drivers.  Some insurance companies  offer protection from uninsured drivers  , but of course  legal drivers are paying extra because of uninsured ones. 

The car must be insured  but the driver must also be insured to drive the car.  Either as a policy holder or named driver on the policy.  Some policies allow the policy holder (but not named drivers) to drive someone elses car  ,usually at minimum cover.  And garages and other companies have special insurance.

Some insurance companies are large financial institution with billions of pounds in assets, able to pay any claims.

But many authorised insurers are small organisations of investors who take on a limited risk  in return for premium payments.  They may not have offices or many staff.   They may work under the Lloyds system of syndicates.
 They are groups of wealthy investors who ,in return for a share of the premium absolutely  guarantee to pay an  agreed in amount,(maybe in the millions ) if things go badly wrong. But they dont actually have to put the money into the syndicates bank.  But if necessary the poor mite might need to sell one of their mansions to meet the debt ..  Meanwhile they keep their millions  invested elsewhere.  Double return on the same money :P

Thus the uk have  " Insurance companies"  such as  Hastings direct who are not actually approved Insurers in the strict sense. But they are regulated  by the financial authorities, and might have a small approved insurance companies in their organisation.  They  have large staff, advertising budgets, administer claims etc,. Much of the premium you pay will be for their administration fees.   But ultimately they  spread their insurance  risk  by using a panel of smaller approved insurer syndicates   to actually  underwrite the main  risks.     Some syndicates prefer low risk drivers, for a smaller, but safer  income.  Others are willing to take risks for a bigger profit.  But nothing is forcing them to insure a particular car or driver.

Then there are Brokers, such as Adrian Flux.  Similar in many ways I think. I'm not sure of the exact distinction but I think they tend to be more independent, and the better ones will seek out a good deal for a customer  by going to many insurance companies, not just the few they normally work with. They work on commission.

Then there are 'comparison ' web sites such as 'Go compare, and 'compare the market'.   These operate a search engine.  You enter details, on their site and this is input into numerous other  data bases. They then present a list of offers from various insurance companies, including some offers from other 'Insurers' such as Hastings Direct.     When you chose one you are directed to that companies web site and deal with them directly.  The comparison site has limited further involvement beyond collecting their commission.

I hope this helps.  I may be wrong in some details.

« Last Edit: February 02, 2022, 09:15:01 AM by Lord Voltermore »
  Trust a dog to guard your house  , but not your sandwich

Tags:
 

Back to top