Why did Toyota's own insurance increase my premium by 140pc following a minor accident?
I suspect I cannot be alone in wondering at the state of car insurance companies? As an example, I quote my own extraordinary dealings with Toyota Insurance. I've owned over ten Toyota cars and have always insured with the manufacturer's own insurer - until now. I traded in my two-year-old Auris TR Multi Mode 1.6 in September for an identical model, even the same colour. Toyota Insurance charged me £27 to change the details (which seemed a bit steep at the time).
I have a maximum protected no claims discount, but sadly, two days after getting my new car, I had a minor - very minor - bump with a neighbour's vehicle. This week I received my insurance renewal - up a whopping 140 per cent to well over of £900 a year. It couldn't be right, I thought - and phoned Toyota Insurance.
Firstly, I was told, all insurance companies have increased premiums by 35 per cent. My own premium was also increased because of my claim - despite my protected bonus (it would, I was told, have increased even more without the protected bonus). The total premium before reductions is just over £1700. When I queried that my 65 per cent discount should have resulted in a figure far lower than the £900-plus I'm being charged, I was told the no claims discount isn't based on the £1700 premium - although the caller centre didn't know quite what figure it is based on. My £27 administration fee to change the car was based on £10 admin and an extra £17 because the Auris has a different specification - same engine but higher horsepower, so the premium has to be increased.
For the record, I've been driving since I was 17 and I'm now 61, and have never had a conviction of any type. As I said, I suspect that my case is typical - and suspect that many other poor wretches facing a similar plight. I am saving several hundred pounds by simply moving to a different insurance company and will probably never purchase another Toyota.
I have a maximum protected no claims discount, but sadly, two days after getting my new car, I had a minor - very minor - bump with a neighbour's vehicle. This week I received my insurance renewal - up a whopping 140 per cent to well over of £900 a year. It couldn't be right, I thought - and phoned Toyota Insurance.
Firstly, I was told, all insurance companies have increased premiums by 35 per cent. My own premium was also increased because of my claim - despite my protected bonus (it would, I was told, have increased even more without the protected bonus). The total premium before reductions is just over £1700. When I queried that my 65 per cent discount should have resulted in a figure far lower than the £900-plus I'm being charged, I was told the no claims discount isn't based on the £1700 premium - although the caller centre didn't know quite what figure it is based on. My £27 administration fee to change the car was based on £10 admin and an extra £17 because the Auris has a different specification - same engine but higher horsepower, so the premium has to be increased.
For the record, I've been driving since I was 17 and I'm now 61, and have never had a conviction of any type. As I said, I suspect that my case is typical - and suspect that many other poor wretches facing a similar plight. I am saving several hundred pounds by simply moving to a different insurance company and will probably never purchase another Toyota.
Asked on 3 July 2012 by JW, via email
Answered by
Honest John
Your experience is typical but not universal of the nonsense of 'protected no claims discounts'. On the other hand, Toyota Insurance is one of the few to offer a 5 per cent reduction if the policyholder fits cold weather tyres from November to March. That said, other readers have achieved substantial reductions by shopping around. I'm receiving a lot of reader recommendations for Liverpool Victoria. My own trade insurance was down £28 for 2011/2012. And the ABI is now putting it about that there will be reductions in insurance this year. I'm not completely convinced.
I think any reduction in base premiums will be more than covered by substantial increases for minor claims and minor transgressions. For example, taking a speed awareness course instead of licence points used to mean no insurance penalty. But some insurers are now insisting on disclosure even of that, much to the fury of organisations like The Institute of Advanced Motorists because it discourages driver education.
I think any reduction in base premiums will be more than covered by substantial increases for minor claims and minor transgressions. For example, taking a speed awareness course instead of licence points used to mean no insurance penalty. But some insurers are now insisting on disclosure even of that, much to the fury of organisations like The Institute of Advanced Motorists because it discourages driver education.
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