Car Insurance company refund error

  VNAM75 12:42 11 Jun 2008

I paid £292 (plus £20 admin fee) to choicequote in nov 07 for third party insurance based on 30% (should it be 50%?) discount because I had a no fault accident which was deducted from my full no claims discount (6 years). 7 months on my previous insurance company tesco have restored my full no claims discount (65%/6 years) because they managed to recover their costs from the third party insurance co.

I have sent the docs to choicequote and they said the refund due to me was £28.05 based on 50% discount applied (shouldn't it be 65%?) which is a lot less than what I've calculated it to be.

I calculate the refund to be £83.43 based on:

Premium with 30% discount (above) = £292

Full premium (no discount apllied) = (292/70) x 100 = £417.14

Premium with 50% discount = 0.5 x £417.14 = £208.57

Refund due is difference between premium with 30% and 50% discount:

292 - 208.57 = 83.42

When I spoke to the guy at customer services he was quite rude so I'm determined not to get ripped off deliberately by them or through their imcompetence.

Their discount rates are also different (incorrect?) ie. 30% for 1 accident and 50% for full no claims. I calculate the refund to be almost the same using 50% and 65%.

Can anyone let me know if my calculations are correct or there is any thing else I should know/take into account before I contact them? Should I email them the calculations then follow through with a call? I have not made a claim during the policy so the discount was applied from the start date.

  namtas 14:14 11 Jun 2008

I don't know if you are aware of this or not, but no claims discounts between companies are not standard, Tesco for instance may have a bonus where the maximum is 65% gained over 6 years, and you may be able to have two claims in any one period without loosing any of your NCD. But Choicequote may have a maximum NCD of 50% and it could be spread over 7 years, and you could loose 20% in any claim. It is not caste in stone so it all depends on what your company offers.

  spuds 15:52 11 Jun 2008

You could perhaps ask FSA click here for some further advice.

  VNAM75 16:07 11 Jun 2008

Thanks for the advice. They said they had applied the discount "mid term" on their system but replied yes when I asked them if it was back dated to the policy start date. There's no justification for calculating it based on the balance of the policy. If I'd had sent them the docs after the policy expiry I would have had no refund?

I've calculated it based on the %'s they told me so the differing rates between companies is not relevant.

I'll email them my figures and request how they've worked out the £28.05.

  johndrew 16:16 11 Jun 2008

`I'll email them my figures and request how they've worked out the £28.05.`

They wont like that; insurance isn`t there to be either questioned or pay out if they can avoid it ;-)

  maureen shepherd 19:47 14 Jul 2008


Possibly a good idea to read about <a href="click here">car insurance regulation</a> from the FSA.


  VNAM75 19:56 14 Jul 2008

I couldn't be bothered in the end. Just sent them the documents, had to chase them once, and they refunded amount tho credit card.

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