Insurance company incompetence - frustrated or just the way it works?

[frgr]

At the end of July, after repeated breakin attempts, some gang broke into our car and took it for a joyride (regular occurance in area). Unfortunately they crashed it, abandoned it, total write-off. No one caught, investigation finished. Having to lift share with colleague and pay her petrol money since buses not an option - need my settlement to purchase new car.

I'm so frustrated with the insurance company right now. I'll condense the story into 3 areas I'm concerned about - I'd appreciate advice?

1. Insurance company have offered a slight amount below the bare minimum I was expecting as settlement. I WILL NOT be able to buy a car anywhere near as good as mine was (not flashy but only 2 years old and lowish milage). I've challenged this with online price research showing why my settlement should be higher.

• Is it worth my time to do this or will they just ignore me?

2. Generally p!ss poor customer service from the claims people. Can't get through to them on the phone, lines open 9am until 6pm when I'm at work, always have to leave an answerphone message which they don't always return, general delays in forwarding my claim details between teams, having to file the claim over the phone twice due to messages being lost... it goes on. Really, really bad experience.

3. Company are going to take £500 excess off the settlement fee. But my 2009 policy document states £0 voluntary excess "with other policy excesses possibly applying". This £500 fee came TOTALLY out of the blue - it's not on my documentation anywhere. Insurance company confirm this, it was never written about anywhere in the schedule/marketing. I have proof, they have proof, it's not in dispute. What they do say is that they have a recording of them telling me the excess via the phone last year. I don't remember this. I've asked them to investigate what went wrong with the documentation, yet to hear back.

An added complication is that the legal cover document was the wrong one they sent at the start of the policy - in August 2010, I got a letter through saying "here's your real legal cover".

• Will they provid me with the recording if I ask for it? I'm sure they're not, but they could be making it up and I wouldn't know
• Is it worth arguing that my documentation has been so poorly managed that they should consider reducing the excess fee from goodwill?

Hello,

1. I would submit your evidence and be prepared to negotiate. Insurance cos do usually have good evidence on valuations and should offer a reasonable price but it may be at the lower end of a range and you could get it bumped up a bit. You may not get the figure you want though.

2. Sadly happens too often. If you can phone at lunch or a break and speak to someone it would probably help. Alternatively try to find out who the chief exec is and his email address (maybe available online) and threaten to write to him with follow up.

3. I'd ask for the recording. I doubt that they would be applying the excess if they didn't have confirmation from you but you never know. If they do then you are on shaky ground as they should have changed the docs but always worth asking for a reduction. Maybe as part of the negotiation process over value...?

Sorry you are having a rubbish time with this and hope you can get it sorted out.

Thank you, BakewellTarts, I think I will write a complaint letter depending on their response to my request to investigate the shoddy handling of documentaion (at which point I plan to ask for their recording proof), and threaten to follow up with their MD/CEO if I don't hear back within a reasonable timeframe (2 weeks to a month to acknoweldge a complaint and start investigating/suggest a resolution is appopriate I think?). I'm now awaiting their feedback on the screenshots I took of similar cars being sold online as proof their "market rate" figure is complete BS.

Thanks!

I think 2 weeks to a month is reasonable...good luck in getting this resolved.

Insurance companies are required to acknowledge complaints within 5 days and give you a date by which they will respond. If there is a compulsory excess it would be on the policy schedule (not certificate) or within the policy booklet. The insurer is only obliged to settle less the excess to put you in a position to obtain a replacement car if similar spec and mileage etc to your old one. As for the debate over the excess, the onus is on them to prove they made you aware.

If you get no joy write to the Financial Ombudsman (address will be in your policy booklet).

In order to get this resolved by somebody who knows what they're talking about, I would suggest you go straight to their Customer Relations Department. Get the address and write a letter setting out all the areas of concern.

They must acknowledge within 5 working days and issue a final response letter within 8 weeks, which will advise your right to go to FOS. If you remain dissatisfied, you can go to the Ombudsman within six months of the final decision. Don't bother going to the Ombudsman first - they won't consider your complaint until you've followed the correct internal procedure.

1. The value of vehicles is often based on the Glass's Guide - www.glass.co.uk/

You may be able to negotiate an increase if you have evidence that the market value is higher than that offered but you'll need to prove this.

1. Call centres are notoriously rubbish. Staff are young and paid peanuts. Don't bother with them - speak to either a manager or the customer relations bods. You'll probably just get an apology but you could ask for compensation (under £50) if you've spent money on unnecessary calls, etc.

1. The excess - I'd be amazed if this wasn't mentioned somewhere in your docs. You need to check both the policy booklet and the policy schedule. The voluntary excess may be nil (you can increase this to lower the premium) but there is usually a compulsory excess which is payable every claim. This is usually stated within the policy booklet, as it is the same for every customer.

I'm not sure FOS would accept that verbally informing you of the excess on the phone was sufficient. Check the doc thoroughly and if it really isn't in there, ask for the call recording. They may do this free of charge or you may have to submit a formal Subject Access Request which will cost you £10 and gives them 40 days to provide the call.

If you want to PM me details of who the insurer is, I'm happy to check out the policy for you on-line. I'm a Customer Relations Manager at a major UK insurer and can give you my opinion on your complaint.

Gail xx

My understanding was that value was based on the trade in/commercial value not the sticker or private value and that is why people often come out with less than expected. TBH my first question would be what do you base your valuations on. that way you can tailor your evidence to their procedures.

As for the excess I would be asking for a recording of the conversation with evidence that it was indeed you one the phone however, even with that, I would be pretty certain that teh documentation they have provided would be legaly binding - unless they have sent you an updated excess notification seperatly, in writing - they should have evidence of it if they have.