Car insurance change of vehicle.

[campbell098]

I am currently with Budget Car insurance and i have been for 2 months. I have a vw golf 1.6. i am looking to get a 1.4 tdi audi a1 which i the same insurance group etc.

 

When i got the quote two months i was quoted £1800, plus fee for monthly installments it came to £2000. Now i had checked the insurance with the same details etc and for the A2 the quote was 1795, so plus the fees the amount would be the same as the Golf.

 

When i called today to change the insurance over, Budget have said the policy wil go up to £2700. I advised that the policy online with the same details is just under £1000 cheaper, and they would not have any of this. Also in my terms and conditions i am liable to pay £750 cancellation fee if i want to start a new quote for this price.

 

Is there anything i can do? The car i am trying to get insured on is cheaper to tax, plus is more environmentally freindly, its not as quick, or as hot hatch like.

 

any help would be greatly appreciated. the only thing I can think to do is hope they look at it in a human way (instead of reading from a script and following process) Im not trying to ask for something for free.

 

Please HELP!!

[rebel11]

Hi cam

 

Welcome to CAG

The guys will advise as soon as they are available.

[Wulfyn]

£750 cancellation fee ?!?! wow.

 

 

Ok, well to apply some maths to this:

 

VW Annual Premium = £2,000 (inc loan apr).

Deposit (guessing 10%) = £200

Monthly Fee = £150

 

2 months in = £200 + £150 + £150 + £150 (for the month you are in) = £650 paid

Therefore £1,350 remaining.

 

New vehicle annual premium = £2,700, a relative increase of +35%

£1,350 remaining + 35% = £1,822.50

 

 

Switching to a new policy is £1,700 annual premium * 9 months (effectively) = £1,275

 

so for the next 9 months switching would save you about £550, if it were not for that insane cancellation fee!

 

 

It seems very high to me, I'd challenge your insurance company exactly why the cancellation fee is that high. There seems to be no reason for it, other than profiteering. Actually it sounds like they'd make more profit from you cancelling than keeping the policy. Oh and environmental friendliness etc has little to do with insurance prices (which are based on statistical evidence). Actually almost all insurance companies have started to move away from using the ABI list now and have their own lists as the ABI ones are pretty awful as predicting risk.

[alistair.long]

Have you had a claim this year? If you have had a accident it would make sence that they want you to pay the remainder. and then starting you up with a new policy that does not consider the points or accident.

If not then it makes no sense and you need to know why there is a £750 charge (maybe credit agreement penalty which can be carried on) If you cannot get anywere then you need to speek to the underwriters.

Budget ellephant and ecar are a headache.