1 EAGLETON NOTES: An Insurance Diversion

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Friday 2 February 2024

An Insurance Diversion

In amongst all the things I've been doing since my brother passed away is the tiny matter of my car insurance. When checking the policy renewal I happened to notice that one of my included drivers had the incorrect date of birth. Many years ago I'd put down his wife's birthday instead of his. He is two years older than I am. I popped in today to correct it. His wife is two year younger than he is. However he hasn't driven my current car which I've had for 6 years. When I lived in New Zealand half the year he always took the car out to keep it in good order. 

No problem said the NFU Mutual agent. It will just be an extra £10. "Don't bother" I replied. Just remove his name. "OK" she said and then told me that removing his name would INCREASE the premium by over £100. Yes. Really.

So he is still on my insurance policy. I wonder if I add another octogenarian onto the policy will I get another £100 knocked off the premium. 

Any insurance buffs out there who can explain the situation?

46 comments:

  1. It would appear that you are considered a higher risk than your brother.

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    1. It wasn't my brother, Rachel. He was 5 years younger than I am. This was a friend who is 2 years older than I am. We both have absolutely blame free driving careers.

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    2. My wording was rather cumbersome. I did it in rather a hurry which is not usually my style.

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    3. Either way, my comment still stands, just change the word brother to friend.

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  2. Well, that's something for me to mull over this Saturday.

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    1. It certainly makes be wonder, Andrew, what happens if I become the sole driver on my policy.

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    2. I doubt here that having more drivers listed would make insurance cheaper. While my partner is the one who is on the insurance documents, I think I am a nominated driver but that doesn't have to be done. Any licensed driver can drive your car, with your permission or in the case of theft without, and is not driving over the alcohol limit.

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  3. Many times insurance doesn't make sense. In fact it's difficult to understand the policies.

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  4. When I bought my first English car for decades, I had imagined that my no-claims-bonus would cross the channel with no problem; my insurer in France was Aviva (an English Co). I was quoted somewhere just over £300 by my new English insurer (Axa), but when they realised that my no-claims-bonus was French they doubled it to over £600. They simply wouldn't accept it. I'm now waiting to see what my premium will be this year. Will my new no-claims-bonus have kicked-in yet? Somehow I doubt it.

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    1. Insurance is a minefield, Cro, that's for sure.

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  5. That is bizarre. Who would have thought that an extra person on the policy would effectively reduce your premium.

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  6. Sounds a little arbitrary to me.

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  7. It doesn‘t make sense, not from the insurer‘s perspective nor from yours.

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  8. Reading thezebra.com, it says a multiple driver policy is cheaper than having 2 separate policies. A two for one vehicle price thing. Definitions of an extra driver might be different with each carrier, for the amount of time the other driver uses the vehicle, for example.
    Age is a factor, but still, while I understand the price structure, it makes no sense to me.

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    1. Maywyn, if the Insurance company had any of that information there could be some logic but they do not and although he is two years older than I am he is only on the policy for emergencies and we both have had clean licenses for half a century except that my friend did have a minor speeding offence about 20 years ago.

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  9. Trying to make sense of insurance policies is a minefield that I have given up trying to navigate safely. I hold my nose and pay the bill - higher every year by the way.

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    1. David, like you, I just put up with it and pay up. However this was quite different and seemed to defy logic.

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  10. Makes no sense to me either. I would have thought that the more people using the car, the higher they would have deemed the risk... (I've never actually owned a car, though, so know very little about such insurances.)

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    1. In theory so would I have thought that, Monica.

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  11. Graham, it makes no sense but it is correct that having an extra driver reduces the premium. Both my our son and our daughter have my wife on their policies to reduce their premiums considerably. When I was told I won't be allowed to drive again because of health, the joint premium went up about £100. Always have someone else on the policy. So long at it is feasible they might be needed to drive the car, e.g. if you were ill, it is perfectly legal.

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    1. Tasker, I've always had someone else on my policy (although it's easy to add one over the phone in an emergency) or in case they need to use it (ie my son who has 3 vehicles between him and his wife anyway).

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  12. Insurance companies are sneaky! They make policies so complicated and keep raising the rates. It seems like such a scam sometimes!

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  13. I will have to chat with our local NFU office about that..looks like I will be keeping my Pirate on the car insurance!

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    1. GZ, my policy is with NFU too. My local office where I went to tell them of my error were as non-plussed as I was.

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  14. I'm not sure why we are talking about insurance when the real story here is a faultless record!
    Well done , Graham!
    I managed a clean record for about 15 then racked up a few offences in a matter of months

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    1. Thank you, Kylie. In the Good Old Days when I was a youngster Liverpool Police used to run courses for young drivers who had passed their test to give them some advanced. 'roadcraft' as they called it. I was one of the lucky beneficiaries.

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  15. That is the most ridiculous thing I have ever heard. I hope if this is ever explained to you, I hope you'll pass along the explanation to us. Insurance really is a racket here.

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  16. After reading your post, Graham, and the comments that ensued, I will admit to being confused as well. That said, Maywyn's comment made a bit of sense about having multiple drivers on the policy to reduce the cost. We have two vehicles and I do not believe we are each listed as an additional driver, so it is something to consider at renewal. My car is older and relatively simple compared to my husband's newer vehicle with varied electronics and I have never driven it for that reason.

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    1. Beatrice, it would be very interesting to see what the company's reaction is.

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  17. Your son Gaz has three vehicles between him and his wife? Why is that? Do they argue a lot? Perhaps she becomes violent with him when he enters the house wearing mucky shoes.

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    1. Actually, YP, there are four vehicles because he uses a quad bike mainly for the croft. He has a van for things his car can't carry.

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  18. Premiums are ridiculously expensive here. We have all our cars and house insurance with one company and even with a staff discount it's horrendous.

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    1. Amy, it's now 7 years since I lived in New Zealand but because the third party liability is carried by the government I didn't find the vehicle insurance compared too badly with the UK. Of course property insurance is getting very high everywhere because of all the natural disasters. Before the Christchurch Quake I didn't notice my insurance being too high but I assume that everything has changed a lot since then.

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  19. Insurance is a racket. Really. I'd need to have this explained to me. If anyone manages to do that in a way that makes sense, I hope you come right back here and explain it to US....

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    1. Debby, even the insurance agent for the company was non-plussed.

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  20. I had never hit a deer in my life. Then in my mid-forties, I hit my first deer. I hit the second one six weeks later. Most upsetting was that the insurance company threatened to drop me if another deer jumped out in front of me.

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    1. Debby, I know it's not funny but I suddenly had a picture of a vengeful relative of a dead deer sitting waiting until you appeared and then committing hari-kiri.

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    2. It is the scenario that gave me nightmares...

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  21. Just the word 'insurance' makes me feel angry. Insurance companies are the worst.

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  22. Late to the party as usual. I am an octogenarian; add my name to your policy and see wha happens! (I'm kidding)

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