Hidden costs of claiming on insurance.

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Hidden costs of claiming on insurance.

Post by bikeralw on Fri Mar 31, 2017 9:31 am

I recently had occasion to claim for damage to my van caused by coming into contact with the sawn-off end of a high level thick tree branch which was hidden from view by foliage. I was only travelling at walking pace as I moved into a passing place on a Scottish single track road, so no one else to blame.
On returning home I was quoted £600 for the repair, so I decided to claim on the insurance, after all, that's what it's there for, plus I had NCD protection...
I calculated that with my combined £100 compulsory and £150 voluntary excess, it would be cost effective.
However, despite my NCD protection, my premium increased by 25%, and I was told next year (assuming no further claims) it will be 10% before the claim is discounted.
As I also have a car policy and a motorbike policy, on which you have to declare any claims over the last 12 months, both these premiums will increase by the same percentage.
I've worked out that my excess plus increased premiums on all three policies over the next two years will come to around £600...
Al.
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Re: Hidden costs of claiming on insurance.

Post by dbroada on Fri Mar 31, 2017 9:47 am

Surely our wonderful insurance companies wouldn't leave you out of pocket!

I once met a man on a train who's job was to calculate (?) how much premiums can go up each year before they lose too many mugs customers.

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Re: Hidden costs of claiming on insurance.

Post by Peter Brown on Fri Mar 31, 2017 10:01 am

bikeralw wrote:
On returning home I was quoted £600 for the repair, so I decided to claim on the insurance, after all, that's what it's there for,

I've worked out that my excess plus increased premiums on all three policies over the next two years will come to around £600...
Al.

When the company I was working for was bought by a much larger company, I was given responsibility for insurance in our bit as I was responsible for all the buildings and transport. Our owners had their own insurance department that was based in the Lloyds office and they gave me an introduction day.

Lesson one; what you pay in a premium one year = claims the year before + interest + management fee.

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Re: Hidden costs of claiming on insurance.

Post by rgermain on Fri Mar 31, 2017 10:22 am

bikeralw wrote:I recently had occasion to claim for damage to my van caused by coming into contact with the sawn-off end of a high level thick tree branch which was hidden from view by foliage. I was only travelling at walking pace as I moved into a passing place on a Scottish single track road, so no one else to blame.
On returning home I was quoted £600 for the repair, so I decided to claim on the insurance, after all, that's what it's there for, plus I had NCD protection...
I calculated that with my combined £100 compulsory and £150 voluntary excess, it would be cost effective.
However, despite my NCD protection, my premium increased by 25%, and I was told next year (assuming no further claims) it will be 10% before the claim is discounted.
As I also have a car policy and a motorbike policy, on which you have to declare any claims over the last 12 months, both these premiums will increase by the same percentage.
I've worked out that my excess plus increased premiums on all three policies over the next two years will come to around £600...
Al.

Hi Al, been there done that, well almost.

When I had the caravan, yes I did, a very kind lady decided to try and pass us on a filter lane, however she ran out of road and her nearside wing mirror touched the rear end of our then caravan.  I was not going to claim as we only ended up with a scrape on the awning rail.

She insisted on claiming saying it was my fault. Total cost £650 for mirror, after 18 mths of waiting to settle she backed down when Saga said ok take us to court then.

The out come is like yours, I had to tell my insurance Co. + I am named on my wife's car + my car and the MX5. What a night mare and it was not my fault, when I renewed we were loaded and only when I was told I was a "no blame accident" on my behalf, I was able to reclaim the extra premiums, even then it took many phone calls and a very careful eye on renewal premiums.

This would have remained in place for 5 YEARS. 

So when I scraped our brand new van on a stone wall while on Dartmoor, I took it on the chin as they say. shrugg

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Re: Hidden costs of claiming on insurance.

Post by Paramedic on Fri Mar 31, 2017 5:21 pm

It was many years ago that our lovely old Parson's Jack Russel 'Smudgie' needed surgery to excise a pea sized lump from her ear. The histology proved to be a cancer and the resulting vet bill was about £350 of which we had to pay the the first £80 + other (not covered) after which the premium tripled!!!! We did not renew the policy and over several years estimated a saving of some £1800. Thereafter, she began to suffer other ailments one of which was referral to a veterinary hospital for a chronic eye problem. This was very traumatic for her due to regular therapy of having a needle scraped across the ulcerative cornea and we had to apply the sodium chloride ointment three times a day. Needless to say, the £1800 seemingly saved was soon swallowed up plus a hell of a lot more. At the end of the day, it's all about risk and what you are prepared to pay. Apologies if I have moved off topic.

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Re: Hidden costs of claiming on insurance.

Post by sylvester1954 on Sat Apr 01, 2017 6:02 pm

I may havementioned this on here before  - But after recieving 3 points for speeding (no complaint about that) my insurance went up as one expects. However even though your driving licence is purged in the eyes of the law after 3 years and that you have in effect a clean licence again - the insurance companies prefer to bleed you for another two years and maintain a higher premium for up to 5 years - how on earth can they justify that I ask?
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Re: Hidden costs of claiming on insurance.

Post by Paramedic on Sat Apr 01, 2017 10:31 pm

Interestingly but perhaps not so unusual, there was no increase in premium with our current van that was valued an extra £15,000 from the last. We were aware of the midterm policy change fee of £15 as laid down in the terms and conditions. Suppose we are all striving to pay less premiums, but can be a bit irksome with a current motoring conviction. Now expired, I did have 3 points for crossing a red light (T10) that frustrated any efforts to drive down quotes, but now always threaten to walk away that occasionally yields further discount even if it is an upgrade in breakdown cover.

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