Wednesday, 26 February 2014

Car Insurance Scam: Scammed By The Insurers

car insurance
Better safe, than sorry
Car insurance, the bane of motorists lives, the world over (or at least in the UK). We hate it, but we need it. And given the abundance of insurance companies (at least several hundred by my reckoning, having compared most of them on comparison sites), we would have thought that with rife competition, prices would be low and added extras would be plentiful. Alas, the insurance market place is wrought with many hidden pitfalls including poisonous small-print, booby-trapped cancellation fees, and spear-headed administrative fees.

My father is in his 50's and his insurance renewal was due in January. And like he has done every year for the last 11 years, he was going to let the insurance auto-renew and not have to worry about a thing. This year he was quoted £585, to auto renew with Churchill. Unfortunately for him, his meddling son, had other plans. I compared the prices of insurance for him as a new customer, online, with various comparison sites (including GoCompare, Money Supermarket and

go skippy scam
My advice, skip insuring with GoSkippy
Voila, £387 was the cheapest, with a company called GoSkippy. I rang the company and asked to pay for the insurance and to ensure the new policy was activated the day after his previous insurance cover ended. A job well done, £200 extra to spend, and a pat on the back for myself.

I should have researched the company beforehand, that was my first mistake. They asked for scanned copies of the no claims bonus (8 years, no less), and a copy of the front and back of his license photocard, and the counterpart.

Having sent these in via email, the company claimed not to have received them, and thus I re sent them. And had the same response. A week later (5 weeks into the insurance policy), we recieved a letter, stating that the insurance was to be cancelled within a week as they have not recieved the relevant documentation and that they would be charging us for the 6 weeks of cover and a £75 administration fee!

So I called them and asked what this administrative fee included. The lovely woman on the phone explained how that is the standard fee and it included costs of cancelling the financial contract with the underwriter. I then asked, why this was not specified when I took out the policy. She said that it was. This was my second mistake, I did not record any of the calls I had made to the company.

Find out what happens in the next post.

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