Just a quick message to let you all know about the hassle I have had with Budget car insurance

I will try to be brief:-

Did an online quote on a comparison website and budget came up as the cheapest quote. I was really impressed with how cheap the quote was But it did only beat the other companies by about £20, so i decided to take out the policy with them.

I was redirected to BUDGETS website where i filled in my info again just to double check the price was right before commiting to buy.The quote came back exactly the same so I bought the insurance. Paid deposit online and setup direct debit for the rest of the years premium.

5 days later I received my certificate of insurance and credit agreement which outlined my deposit which had been paid and my remaining installments. This I signed and sent back the next day

Yesterday 14 days later I received a letter from BUDGET saying that they had made a mistake with the original price and I have until 18th March to contact them otherwise my insurance would be cancelled. I rang them imediately and spoke to someone local in INDIA and tried to sort it out. I was told that I had to pay a further £110 on top of what i had been quoted otherwise my insurance would be cancelled and I am liable for cancellation charges which is stated in the policy terms and conditions!!!!!

This cannot be right!!!! CAN IT? surely they must be in breach of contract or something seeing as both budget and myself had signed the credit agreement I thought that this would be a legally binding document?

I thought I would bring this to everyones attention so that it dosen't happen to them.

Has anyone else had any similar problems with Budget or any other insurance company?

Regards

Alan

Hi --- If you are still within the 14 day cooling off period which started on the day you received your documents, then you still have the right to cancel this policy and should consider doing so as a matter of principle, even suffering a small loss if needed to organise alternative cover that you can trust.

I enclose an extract from their own site below.

Under the Financial Services (Distance Marketing) Regulations 2004, a customer who cancels a car insurance policy within 14 days of receiving their policy documentation is entitled to a proportional refund of premium from the date the unwanted Certificate of Insurance is returned. The customer will not be entitled to the refund of any fees that have been paid

Which can be found on their site page here.

http://www.budgetinsurance.com/policycancellation.aspx

Ashy:

Did an online quote on a comparison website and budget came up as the cheapest quote. I was really impressed with how cheap the quote was But it did only beat the other companies by about £20, so i decided to take out the policy with them.

Doh!

Vicissitude - I'm not sure what your trying to imply? Budget have one of the best car insurance products available (and cheapest) yes you will pay the price if you have to cancel mid term but its all in the terms and conditions. Ashy would never have been passed to a call centre in India WE DONT HAVE THEM!!!!!!!!! if he is within his 14 day cooling off period then he can cancel without paying cancellation fee etc.

budgetperson:Vicissitude - I'm not sure what your trying to imply? Budget have one of the best car insurance products available (and cheapest) yes you will pay the price if you have to cancel mid term but its all in the terms and conditions. Ashy would never have been passed to a call centre in India WE DONT HAVE THEM!!!!!!!!! if he is within his 14 day cooling off period then he can cancel without paying cancellation fee etc.

You would say that... you work for them!!

As somebody with knowledge about the entire industry, I'm telling you now that Budget do NOT have one of the best car insurance products available, but they are one of the cheapest; granted. They are not the worst company around, but they are certainly not anywhere near the best!

Ashy was told that Budget had made a mistake with the original price. I make Budget absolutely right for attempting to collect monies so that the client is making a proportionate contribution. That said, however, the cancellation charges should not be applied as the insurer/Budget wishes to cancel the policy due to an error of their own.

Finally, in reference to: "he is within his 14 day cooling off period then he can cancel without paying cancellation fee etc" this is incorrect. If somebody cancels a policy within 14 days after agreeing to the terms then cancellation fees will apply. If the customer finds a fault with the insurance that should have been specifically highlighted to him/her, then the cancellation fee will not apply. (ie. Excess not explained, breach of other regulatory requirements) etc.

budgetperson:Vicissitude - I'm not sure what your trying to imply? Budget have one of the best car insurance products available (and cheapest) yes you will pay the price if you have to cancel mid term but its all in the terms and conditions. Ashy would never have been passed to a call centre in India WE DONT HAVE THEM!!!!!!!!! if he is within his 14 day cooling off period then he can cancel without paying cancellation fee etc.

I'm sure I saw a channel 4 documentary about call centres (and peoples growing rage towards them) in which Budget were recruiting for their new call centre in South Africa. So although Budgetperson is correct its a little misleading.

---

Joe Blogs

Budget have 4 call centres in th UK and 1 in South Africa.

Also there is no cancellation fee if you are cancelling within the 14 day cooling off period but there is an adminitration fee (this is a lot less than the cancellation fee). If you really feel you have been misled then ring up and complain or write in to complain. All calls are recorded and can (and will be) listened to to see if you were misled. If you were they will waive and fees.

If the policy is cancelled by Budget then no fees or short term rates will apply.