Increase in insurance after adding and removing driver.

Peter Denham

Hi,

Having a bit of a confusing situation currently with my insurance company. Basically my premium for the year was €700 and I pay monthly installments.I added a driver who had just passed their test and the monthly payments rose by €30.

After two months I removed the driver and the new higher rate remained in place. When I asked about this they said there's no risk reduction when removing the driver. I went online and got two quotes off their website (one with the driver added, one without) and there was a substantial difference between the two quotes, roughly €300. So there's no risk reduction when removing the driver but a very clear increase when adding the driver.

I called them and they said they have a different policy for new and existing customers but she didn't seem to understand my query either and seemed unable to really justify it. She said first the reason my premium didn't go down is because it was recalculated on current rates, but going online I was able to get a cheaper quote with the exact same company.

Can anyone break it down in simple terms why I'm paying a significantly higher monthly rate even after I removed the source of the increase?

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The basic answer is that when you wanted to add a named driver, they had a lever to increase your premium, as if you didn't accept the increase, you couldn't add the named driver. Now that you want to remove a named driver, there's no incentive for them to offer you a reduced premium. You've already agreed to pay the higher amount, and they don't really care if you remove the named driver or not. All you can do is wait until renewal and shop around.

Peter Denham

Ismael Square Photo wrote: »

The basic answer is that when you wanted to add a named driver, they had a lever to increase your premium, as if you didn't accept the increase, you couldn't add the named driver. Now that you want to remove a named driver, there's no incentive for them to offer you a reduced premium. You've already agreed to pay the higher amount, and they don't really care if you remove the named driver or not. All you can do is wait until renewal and shop around.

Thanks for that. Will bear that in mind when adding drivers for short periods again.

beauf

You could get a quote from somewhere else and if cheaper switch to that and cancel your existing policy.

Some companies allow you to add another named driver for a small number days per year with no charge. Some don't.

Peter Denham

This company is by far the cheapest I've come across. Could I cancel this policy and immediately get another one with them? The latest quote I got is much cheaper than what I'm paying.

Purgative

Peter check their smallprint before you commit to anything.


I've dealt with these types before (through necessity). I was initially chuffed and took it out on the phone. As soon as I saw the policy bumf, they were sticklers for anything not standard and blah blah.


So I thought better letter them know about the tonneau cover. Funnily enough 30 squids more.



Never went with them again.

beauf

Peter Denham wrote: »

This company is by far the cheapest I've come across. Could I cancel this policy and immediately get another one with them? The latest quote I got is much cheaper than what I'm paying.

I would say based on their actions thus far, they will find some way of charging you an even higher fee for doing that.

milhous

Peter Denham wrote: »

This company is by far the cheapest I've come across. Could I cancel this policy and immediately get another one with them? The latest quote I got is much cheaper than what I'm paying.

Last year we got our renewal quote from aviva, it had gone up significantly. So I got a quote from their website as a new customer and it was the original price from the year before. We rang them and explained, the girl said there's nothing she could do, to let the policy lapse and avail of the other quote as a new customer. Bananas.