Consumer complains about a pricing mistake made on their insurance policy

Distress and inconvenience Up to £300 Insurance Pricing Motor Insurance

Hassan contacted us after noticing a price increase on his motor insurance policy.

What happened

Hassan renewed his insurance policy for a number of years and noticed on his recent renewal documents the price had increased.

He hadn’t made any official claims on his policy but notified his insurer a few years ago about a motor incident.

He was unhappy the premium had increased by so much, and contacted his insurer to complain. Unhappy with their response, Hassan decided to get in touch with our service to make a complaint.

What we said

We asked the business to provide evidence such as call recordings and policy notes.

The evidence showed Hassan only notified the business of an incident and never made a claim, and that no other driver had ever made a claim against Hassan’s policy. We also found there was no reported change in circumstances, which could have accounted for the price increase. 

It was clear from the evidence the business had incorrectly recorded a fault claim on its own records and on the CUE (The Claims and Underwriting Exchange) database when this should’ve been recorded as a notification only – which wouldn’t have had a substantial increase on his premiums. 

We told the business to change their records and the CUE database to correctly show Hassan only notified them of an incident rather than having made a fault claim. 

We asked the business to recalculate the premiums and refund the extra premiums taken at the renewals since the claim was incorrectly recorded, and that it pay Hassan £150 for the distress and inconvenience caused.

We also recommended the business add interest at a rate of 8% for each year Hassan was overcharged.