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Nov 12, 2013 23:37:49 GMT
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A couple of weeks ago my uncle received and extreemly reasonable insurance quote from his insurance company. When i say extreemly reasonable, it was by far the lowest quote ive ever seen. He sends the cheque off only for it to be sent back with a letter saying they had made a mistake, and the premium this year will infact be comsiderably higher.
I just wondered if anyone actualy knows where he stands in this. Ive told him a quotes a quote, stick to your guns, they made the mistake so tuff toenails to them, or is is a case of now that they have got it right he has to pay for it? Bearing in mind he actualy has it in writing what the original quote is, i see it the same as walking into a shop and seeing a price on the shelf, the price you see is the price you pay, if there was a mistake the shop takes it on the chin.
Just interested to know your thoughts on this.
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Nov 12, 2013 23:42:02 GMT
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Did he get the quote direct from the insurance company or did he go through a broker ?
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Nov 12, 2013 23:44:26 GMT
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In this case no money has changed hands therefore the company can change the premium as it sees fit.
It's a bummer I will agree but at least you know how the company operate now rather than be uninsured in the event of a bump.
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1965 Morris Minor 1000 soon to be 1380
1997 MK1 MX-5 1.8 (sold)
2009 MK3 MX-5 2.0 (sold)
2008 Mini Cooper (sold)
2003 Mini Cooper S (sold)
Fixed wheel Raleigh Clubman (sold)
1982 Yamaha RS125DX (sold)
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In this case no money has changed hands therefore the company can change the premium as it sees fit. It's a bummer I will agree but at least you know how the company operate now rather than be uninsured in the event of a bump. Whilst i see your point, they didnt tell him any different until after he attempted to pay for it. He has yet to see the new quote in writing. The letter they sent to him only told him it was different, he phoned them once hed received the letter to find out what was going on, only to then be told of the hike. If its the case that they are in the right to do this, they can whistle for their money as he'll be going else where. Authough ive seen the quote (before the problems arose) ive no idea if its through a broker or not at the moment. Surley, if you are getting building work done (for example) and get a quote for the cost of the work, its a bit different to getting an estimate. As i understand it an estimate can change, but a quote is as good as signing a contract?? Or am i talking out of my backside? |
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I think the quote is deemed an "invitation" whereas the actual contract is when money changes hands. Until formal contract then either party can amend, alter, cancel etc.
This is my laymans understanding from reading years ago about the price sticker on goods in shops and supermarkets and such was an invitation to buy and the actual sale contract was at the checkout where a higher price may be displayed and then customer has option to cancel transaction. Previously it was argued that the price sticker was binding but a test case in court ruled the price sticker was only an invitation. I assume the same could be said about a quote.
Paul H
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Nov 13, 2013 18:13:58 GMT
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Ahhhh, cheers dude, i was unaware of that, it will save me spouting off to the insurance company myself on friday. Now it seems like i may have to burst his bubble, though he is goig to citizen advice to see what he can find out himself.
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Nov 13, 2013 18:48:35 GMT
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I would not be surprised at all if even at formal contract stage that insurers have a clause stating quote may increase for "risk adjustment" and all manner of smallprint excuses - basically " yes it's our fault the quote was too low - but we will increase it- tough titties.If you don't like we will cancel"
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awoo
Posted a lot
Posts: 1,507
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Nov 13, 2013 20:04:28 GMT
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i see it the same as walking into a shop and seeing a price on the shelf, the price you see is the price you pay, if there was a mistake the shop takes it on the chin. Just interested to know your thoughts on this. as pretty much already said - if a shop displays something incorrectly by accident, like a massive tv for £40 - they are not bound in anyway to sell it at that price - you can offer to buy it at that price still but they can turn it down. i think people seeing stuff of mistakes made on argos/tesco/etc websites, where stuff like this happens and they let it sell at the lower price - makes people think its some sort of law. in reality the stores notice it as a bit of cheap advertising. thats as far as it goes |
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Nov 13, 2013 20:47:30 GMT
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i see it the same as walking into a shop and seeing a price on the shelf, the price you see is the price you pay, if there was a mistake the shop takes it on the chin. Just interested to know your thoughts on this. Actually this isn't the case, have a snotty email from trading standards explaining it, the price on the shelf is an invitation to tend an offer, they don't have to accept it. |
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Nov 13, 2013 23:18:41 GMT
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Oh, ive played that one with the shop round the corner many times when theyve got the price wrong, its always worked. I guess I wont be telling them what the rules are! Good point about checking the small print, theres probably something in there giving them reason to change things as they see fit.
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I'm afraid the insurance company have no obligation to let your Uncle have the cheaper premium they quoted, even if he had already paid.
A few years ago I took out insurance on one of my cars as I got an extremely good quote, a few weeks after it was all paid for and I had been using the car they sent me a letter and rang me to say a mistake had been made and I could either pay the correct premium (increase of £2,000) or they would cancel the insurance. I looked into it at the time and it is perfectly legal and within their contract to refuse to let you have the cheaper price.
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Nov 14, 2013 21:34:49 GMT
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i see it the same as walking into a shop and seeing a price on the shelf, the price you see is the price you pay, if there was a mistake the shop takes it on the chin. Just interested to know your thoughts on this. Actually this isn't the case, have a snotty email from trading standards explaining it, the price on the shelf is an invitation to tend an offer, they don't have to accept it. And the same goes with an insurance quote, some will say that it is that price if you pay the full amount now. if they had said that the quote is valid until *date* then they will honour it otherwise as already said it is just a guide price. #same with builders or mechanics unless it is in writing that the service will be provided at that price they are within their rights to change it. In my mind it is bad practice (in my part time business) not to give fixed price quotes although sometimes I have to so I will make it clear that the price stated is only an estimate and make sure the customer understands this. |
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ibfan
Part of things
Posts: 219
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I had a slightly different experience...
Had a very good quote off a very reputable company ...all set up and paid the initial payment, got verification through of installments.....fine
Two weeks later get another letter stating the insurance company were upping the instalments (double price!)
The reasoning (after chasing it up) was I didn't state on the
Phone quote certain items that were modded and when I filled the Fact/mod sheet I then had an uprated air filter/clutch and supercharger!!
I did argue my point that stated EVERY mod on the car...
Back and forward again on the phone...
Then two weeks later gets a slightly humbled apologetic answered message stating they had reviewed the original phone call and agreed I had stated everything...
Pleased they admitted not pleased they didn't tell
Me before trying to set up installment plan for a lot more money!
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If he has had a quote the quote is legally binding under contract law for the services discussed, an estimate is exactly that. I will add that insurance companies will adjust risk as they see fit and this is usually in their T&C's.
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If he has had a quote the quote is legally binding under contract law for the services discussed, an estimate is exactly that. I will add that insurance companies will adjust risk as they see fit and this is usually in their T&C's. A quote is not legally binding unless it is in writing agreed by both parties and then it still may state 'subject to change', 'valid for 4 days' or similar and as you say it will be in their T&C's that they can change their mind. |
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