Car Insurance,how is this legal ?

[Leekbrookgull]

If you go to a broker in the High St you can actually see how the get your quote either by searching online or books it is there in front of you,so the offer you a price say £400 F/Comp payable now or if you like £440 over 12 months. Yet how can firms like Direct line and there are others offer you 12 months but you only pay for 9 ? Seeing that this is either over the phone or online trade you never see any figures,quite simply there could be saying anything and probably are,so how is it legal ?

 

[Curly5194]

If you go to a broker in the High St you can actually see how the get your quote either by searching online or books it is there in front of you,so the offer you a price say £400 F/Comp payable now or if you like £440 over 12 months. Yet how can firms like Direct line and there are others offer you 12 months but you only pay for 9 ? Seeing that this is either over the phone or online trade you never see any figures,quite simply there could be saying anything and probably are,so how is it legal ?

What? If you phone up DL or get a quote on-line of course they quote you figures and then when you sign up they send you the paperwork. I don't get your question.

 

[arkan]

because companys like direct line set their own rates so they can offer whatever they want.
All small and many highstreet insurance companies get their rates from various brokers so that will be their base rate and then add on extras (why insurance is so much)
I used to work for a small company a couple of years ago and its disgusting how they bump the prices up so much to customers

 

[Renmei]

I suspect if you made an application under the Data Protection Act they would have to disclose what the 12 month premium would have been. Direct Line are pretty uncompetative these days anyway.

 

[Curly5194]

I suspect if you made an application under the Data Protection Act they would have to disclose what the 12 month premium would have been. Direct Line are pretty uncompetative these days anyway.

Unless you tell them that your not renewing your insurance and somehow they manage to find you a 30% discount (as in my case). Then very competitive.

 

[Curly5194]

I get the OP's question now! Sorry for being dim.

 

[beorhthelm]

good question, how is car insurance legal, its a bloody racket.

to the OP, im not sure i understand, are you questioning the rate for defering payment or what they charge you online?

 

[Leekbrookgull]

good question, how is car insurance legal, its a bloody racket.

to the OP, im not sure i understand, are you questioning the rate for defering payment or what they charge you online?

The point is,if you actually visit a broker ( I use NFU Leek) you can actually see how they work out a quote. They say 400 means 400,Yet D/Line and others say the same and we have all seen the Ad,s Get 12 months cover but only pay for 9. Yet because it is either online or over the phone YOU never see any figures,so how can that be legal ?

 

[element]

That's probably why there is a fourteen day 'cooling off' period on distance selling, as in, if when you see the paperwork that arrives after taking out a policy, and you are not happy with it, you can cancel?

 

[Since1982]

That's probably why there is a fourteen day 'cooling off' period on distance selling, as in, if when you see the paperwork that arrives after taking out a policy, and you are not happy with it, you can cancel?

Yes you can. And 3 months free or 12 months for the price of 9 or however it is described is of course nothing of the sort, its just marketing speak for a supposedly lower premium.

 

[Curly5194]

At the end of the day you choose to go with whoever you want and that will usually be the best or cheapest quote. Regardless of 12 for 9 or whatever else they are offering, it all comes down to the final price.

 

[beorhthelm]

still dont get it really. both quotes are compiled on a computer and on one you "see" the output, the other someone tells you down the phone. online its just a different interface to the same thing you see in the brokers. as pointed out, you get the paperwork to comfirm. how do you know the broker isnt adding 20% on to the underwriter premium (probably are)?

 

[Leekbrookgull]

True,but at least at the broker you can go back and 'Have it out' !!

 

[drew]

You have to remember it is not an exact science. Insurers will have their rates and built into that are their margins and the bottom line. They are not going to quote you the very best price they can give without trying to get a higher one first and therefore a better premium. I was insured with Admiral and had their renewal terms which showed a slight increase, not unusual. Went on a price comparison website and the cheapest quote was Admiral with a difference of about £40. Rang my insurers about my existing policy and after checking that cover was like for like they matched the lower quote. You have to haggle.