Insurance mix-up has turned nasty

January 14, 2010 – 1:24 am

Some weeks later, I realised we were paying much more than expected and found the new policy was running alongside the old policy, which had been renewed.

Premierline admitted there had been a mistake, but insisted on cancelling the cheaper policy.

When I protested they said the policy was void because I had given them misleading information, which is not true.

This affair has been very upsetting and left us out of pocket. Can you help? J.B. Cheshire

Simon Moon from This is Money replies: Premierline Direct blundered badly then set out to blame you for their deficiencies.

The company have separate departments for renewals and for new business that appear to exist on different planets.

When the new-business department contacted you using information you left on comparison websites you thought you were dealing with the same people who had asked you for £565 to renew your policy.

After several discussions about rival offers, Premierline agreed on a figure of £308 and a new policy was set up. By this point you might have thought the company’s systems would have alerted someone to the fact that there was already a policy in force covering your business, but alas, no.

A couple of months later you realised you were paying much higher regular premiums than expected and discovered the renewals department had simply gone ahead and renewed your old policy so the two were running in tandem.

Premierline accepted there had been a mistake but then started an investigation, listening to recordings of conversations you’d had with the new-business department.

They then scrapped the cheaper policy, accusing you of giving misleading information in your online search. You dispute that accusation and point to the fact that Premierline already had all your business details on their computer system.

Premierline told me: ‘The reason Ms B was given a quote of £308 was because she indicated that her business insurance renewal quote was £350, which was not the case as it was £565.’

You say you did receive a quote of £350, but from another company and this is what you told Premierline. They asked for evidence but you were unable to produce it two months after the event, which is hardly surprising, so they insisted you should pay the full £565.

Premierline should have accepted they had shot themselves in the foot but chose to put you in the firing line. You say you were made to feel like a criminal for trying to get the best deal possible.

You have since cancelled your Premierline policy and renewed your insurance elsewhere, but this episode has been needlessly distressing for you and your parents.

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