Do insurance companies share data to scam more money out of you?

asim18 · 2 Aug 2016 at 13:17

About a month ago I decide to visit some comparison sites to see whats up with insurance prices and i found about 4 insurers with NO black box quoting 1200-1400. Seemed very reasonable as my current black box policy was around £1300.

Fast forward to yesterday I've got 2 months left on the policy (More Than) but I've run out of my annual mileage which was 4,000 miles.

Called more than yesterday who wanted £350 for 1000 extra miles. I tell them I only need 300-400 tops, they then say I could have bought 300 miles but I cant buy them now because I've got more than 30 days left on the policy (nice moneymaking scam). So I tell them I'll call back next day to finalise cancellation the policy after I find another insurer.

I've gone on a comparison site and now the cheapest policy is £1800 With a black box. and the cheapest without a blackbox is over £2200! WTF is going on? I'm thinking more than has obviously done something to increase my premiums or something?

By the way I have a triple 10* rating on the black box!

Never been scammed this hard in my life. Almost 10 months of driving like an OAP in hopes I'll get cheaper insurance next time and it's ****ing doubled!

Nasher · 2 Aug 2016 at 13:22

The whole industry is a scam

I don't even use comparison sites. I always get the best deals by calling them and haggling them down.

ci_newman · 2 Aug 2016 at 13:34

The difference in price is because you were probably quoting with NCD, which you sacrifice if you cancel your policy early.

asim18 · 2 Aug 2016 at 13:38

ci_newman said:
The difference in price is because you were probably quoting with NCD, which you sacrifice if you cancel your policy early.

You are right there was a difference with and without NCD but I tested both and it was negligible, about £100 less.

I'm starting to think I shouldn't have been driving like an OAP. Maybe their computer algorithms have deduced that I am likely to end up on the wrong side of a motorway?

asim18 · 2 Aug 2016 at 14:18

Haha

I'm so awesome on the phone. Just called More Than again and explained to them that I'm fully aware of this scam of trying to get me to buy 1000 miles which is 500 More Th>n I actually need.

Ended up getting exactly what I wanted. 500 extra miles.

Still have the headache of doubled premiums at my next renewal though. Dreading what will happen in 2 months.

kaku · 2 Aug 2016 at 14:22

Some comparison sites are owned by insurance companies. Confused is owned by Admiral Group IIRC.

Sui · 2 Aug 2016 at 14:23

I always thought the mileage estimate wasn't set in stone, and you wouldn't get penalised for not sticking completely to it?

acemastr · 2 Aug 2016 at 14:31

Who in the world tells insurance companies the correct mileage and RAISES it when they go over?!?

I always set 3k miles for my bike and tripled it every year, nothing was ever said.

asim18 · 2 Aug 2016 at 14:34

Sui said:
I always thought the mileage estimate wasn't set in stone, and you wouldn't get penalised for not sticking completely to it?

acemastr said:
Who in the world tells insurance companies the correct mileage and RAISES it when they go over?!?

I always set 3k miles for my bike and tripled it every year, nothing was ever said.

Yes you're right, but this is with a black box. Which I would NOT recommend to anyone EVER, now that I know what it actually does.

The second I ran out of my agreed 4,000, they automatically posted a letter saying my policy will be cancelled within 14 days if I don't buy more.

So yeah guys, do NOT buy a black box insurance policy. How could I be so stupid, why on earth would an insurer ever actively aim to charge me less!?!? In the long run it's just a scam to milk more money from people, even though the short term impression they give is that you're saving money.

Sirrel Squirrel · 2 Aug 2016 at 14:34

I guess the box tracks your mileage?

Akagi · 2 Aug 2016 at 14:37

Friend of mine who works in the business says you can use however many years no claims as you have been driving with continued insurance, regardless of whether you have cancelled early or not.

So if you have been insured for 3 years non stop, but cancelled three times mid way through the year to change insurer, and so have been with 6 different insurers, you can still start a new policy with 3 years no claims.

If they ask for proof of no claims, you provide them with the documents that show when each policy you had started and ended.

acemastr · 2 Aug 2016 at 14:38

asim18 said:
Yes you're right, but this is with a black box. Which I would NOT recommend to anyone EVER, now that I know what it actually does.

The second I ran out of my agreed 4,000, they automatically posted a letter saying my policy will be cancelled within 14 days if I don't buy more.

So yeah guys, do NOT buy a black box insurance policy. How could I be so stupid, why on earth would an insurer ever actively aim to charge me less!?!? In the long run it's just a scam to milk more money from people, even though the short term impression they give is that you're saving money.

Apologies, that bit didn't computer.

Avoid at all costs (literally)

paradigm · 2 Aug 2016 at 14:44

Who's to say that you "used up" all of your allotted mileage anyway?

Surely your father with "drive other car" cover has used up some of your mileage

Joe T · 2 Aug 2016 at 14:50

acemastr said:
Who in the world tells insurance companies the correct mileage and RAISES it when they go over?!?

I always set 3k miles for my bike and tripled it every year, nothing was ever said.

How many claims did you have in that period?

xs2man · 2 Aug 2016 at 14:52

Acme said:
Friend of mine who works in the business says you can use however many years no claims as you have been driving with continued insurance, regardless of whether you have cancelled early or not.

So if you have been insured for 3 years non stop, but cancelled three times mid way through the year to change insurer, and so have been with 6 different insurers, you can still start a new policy with 3 years no claims.

If they ask for proof of no claims, you provide them with the documents that show when each policy you had started and ended.

Nope. Never heard of that. Ever. Pretty sure that simply isn't how it works at all. NCD needs proof, which comes from another insurer.

Akagi · 2 Aug 2016 at 15:24

Hmm... They'll be able to see that someone has had constant insurance and zero claims on their system anyway. Most insurers systems are linked and they share information. He did say that not all insurers will accept it but most will if you provide documentation which indicates continued cover for that period of time.

covenantuk · 2 Aug 2016 at 15:30

acemastr said:
I always set 3k miles for my bike and tripled it every year, nothing was ever said.

And nothing will be said. Until you have an accident and try to claim. At which point they'll check the odometer on your bike, the DVLA, any servicing record, MOTs etc.

When this is done, you'll find you've invalidated your policy and they won't pay out either for you or for any 3rd party. Good luck in court.

Armageus · 2 Aug 2016 at 15:43

Acme said:
Friend of mine who works in the business says you can use however many years no claims as you have been driving with continued insurance, regardless of whether you have cancelled early or not.

So if you have been insured for 3 years non stop, but cancelled three times mid way through the year to change insurer, and so have been with 6 different insurers, you can still start a new policy with 3 years no claims.

If they ask for proof of no claims, you provide them with the documents that show when each policy you had started and ended.

If doesn't work like that - if you cancel early then you are forfeiting however much of that year's worth of no-claims you have accrued.

If it did work like that, then people would be chopping and changing to get better deals from month to month without any penalty.

The only proof of no claims accepted in my experience has been either a renewal notice or cancellation letter (and the cancellation letter normally says how many complete years no claims you had when you cancelled).

Joe T said:
How many claims did you have in that period?

Doesn't matter, because unless you are on a black box, mileage is just an estimate. When I had to make a claim recently, the only reason mileage was asked for was to aid in determining the car's market value.

Unless you are massively under or overdeclaring it (e.g., if you declared 2k miles year and do 20k), then I doubt there would ever be an issue.

kindai · 2 Aug 2016 at 15:44

covenantuk said:
And nothing will be said. Until you have an accident and try to claim. At which point they'll check the odometer on your bike, the DVLA, any servicing record, MOTs etc.

When this is done, you'll find you've invalidated your policy and they won't pay out either for you or for any 3rd party. Good luck in court.

More like you'll have the difference in policy price deducted from any payout you receive :rolleyes:

asim18 · 2 Aug 2016 at 15:53

Sirrel Squirrel said:
I guess the box tracks your mileage?

Yeah the box tracks pretty much any movement and detailed location information accurate to a few feet (GPS), not just mileage. Wouldn't be surprised if More Than are in possession of several audio recordings of me saying "bloody cyclist".

Ok it probably (hopefully) doesn't record audio, but It's got some sort of 3G modem built in and it sends a lot of telemetry info to MoreThan in real time.

Do insurance companies share data to scam more money out of you?

Sgarrista