:01:15. > :01:20.We asked you to tell us who has left you feeling ripped awe.
:01:20. > :01:25.think this is very wrong for what they have done. The bank charges
:01:25. > :01:30.upon charges, upon charges. Legally it was right. Morally that is where
:01:30. > :01:34.the question of cut out comeles. And you contacted us in your
:01:34. > :01:40.thousand, but post, e-mail, even stopping us in the streets. The
:01:41. > :01:45.message could not be clearer. are trying to fob you off. I am not
:01:45. > :01:50.happy. There is the small print with the clause that you didn't
:01:50. > :01:54.reel rice. We are being ripped off big time. Whether it's a deliberate
:01:54. > :02:00.rip off; a mistake or a catch, we will find out why you are out-of-
:02:00. > :02:06.pocket and what you can do about it. Keep asking the questions. Go to
:02:06. > :02:11.the top if you have to. We do get results. Your stories, your money.
:02:11. > :02:15.This is Rip Off Britain. Welcome to Rip Off Britain. The series that
:02:15. > :02:20.takes on the companies giving you good reason to gripe and feel
:02:20. > :02:26.frustrated. Now, if you think you are getting a raw deal, we are all
:02:26. > :02:29.here to get to the bottom of what is going on. That is right. We are
:02:29. > :02:33.ininvestigating something that affects millions and leavessome of
:02:33. > :02:38.you feeling short changed and exploited. Why has the cost of car
:02:38. > :02:41.insurance gone through the roof? Why indeed. Anybody who drives a
:02:41. > :02:45.car is already feeling the squeeze with high fuel prices, but the
:02:46. > :02:51.coast of insurance is hitting you hard. Recent figures from the A
:02:51. > :02:58.show our car insurance has gone up by an average of 30% this year.
:02:58. > :03:02.That is a shocking amount. We are going to find out why. Also coming
:03:02. > :03:06.up. The residents getting parking fines for driving into their own
:03:06. > :03:10.homes.. My car is clocked by their camera, and because I don't buy a
:03:11. > :03:16.ticket for the car park because I am coming into my house, that sends
:03:16. > :03:20.a message to their computer, they send me a fine which goes up to
:03:21. > :03:27.�100. When woeped our pop up shop we built our very own gripe box,
:03:27. > :03:33.and you made use of it by airing your frustrations. It had gone up
:03:33. > :03:37.to just over 1,000. I had to pay �2,000 to insure it what a rip off.
:03:37. > :03:41.You might expect the price of car insurance to vary bait depending on
:03:41. > :03:46.where you live but some you have have discovered by living in
:03:46. > :03:52.certain post codes you can end up virtually uninsurable. That is what
:03:52. > :03:57.happened to the driver we are about to meet. He lives in Bradford where
:03:57. > :03:59.the car insurance has risen more sharply than anywhere else. So much
:03:59. > :04:03.so some districts have been blacklisted. You will get a quote
:04:03. > :04:10.that is impossibly high or they won't give you one at all. Even if
:04:10. > :04:13.you are one of the best drivers in town. Driving has been a big part
:04:13. > :04:21.of Richard Summerscale's life and that doesn't just apply to steering
:04:21. > :04:25.a trolley round his local cash and carry. The sandwich shop owner
:04:26. > :04:31.admits he's couldn't be without his car. It is his lifeline, for runger
:04:31. > :04:35.rands and stocking up on supplies for his business. I would be lost.
:04:35. > :04:41.There is no way I could do deliveries, pick up the required
:04:41. > :04:45.bits we need, you know the shopping, cash and carry, and generally
:04:45. > :04:50.getting about town. He has years of experience behind the wheel. In
:04:50. > :04:55.fact he would have a good claim to be among Britain's safest drivers.
:04:55. > :05:03.I was in West Yorkshire Police for 15 years. Part of the time I spent
:05:03. > :05:06.in the road traffic department. I went on advance driving course,
:05:06. > :05:11.accident investigation which mean I can see things before normal drives.
:05:11. > :05:15.It is no surprise he believes he's is low risk when getting insured.
:05:15. > :05:19.He had been with esure for fiv years and was happy with them until
:05:19. > :05:28.last year, when despite no new claims or conviction, the former
:05:28. > :05:31.traffic cop's policy was set to go up from �156, to �885. The first
:05:32. > :05:35.reply is because that is what the computer said. I wasn't happy soy
:05:35. > :05:40.pushed it further. They said they were getting a lot of claims in
:05:40. > :05:46.Bradford, I said not from me! Richard took his business elsewhere.
:05:46. > :05:50.The best he could get was a �317 policy with another company. And
:05:50. > :05:54.when 12 months on that looked like it was going to creep up too, he
:05:54. > :05:58.decided to see what his previous insurer esure could quote this time.
:05:58. > :06:03.As soon as I spoke to the person, gave me detail, went through the
:06:03. > :06:07.quote and they say sorry, we are unable to quote in your postcode
:06:07. > :06:13.area. Despite the fact that esure insured him in the past, they were
:06:13. > :06:19.now refusing to. Richard was furious. At being classed as a
:06:19. > :06:24.driver who was uninsurable. I was ensensed. I had paid my premium on
:06:24. > :06:29.time all the previous year, they were happy to ache my money.
:06:29. > :06:36.Suddenly it becomes not as economical. Plenty of other local
:06:36. > :06:43.drives experienced the same thing. So many after being inundated with
:06:43. > :06:48.complaints from stit wents Bradford east MP David Ward conducted a
:06:48. > :06:52.city-wide survey. He found over the last three years the 511 people who
:06:53. > :06:57.took part saw their premiums rise by 63%. What people are saying is
:06:57. > :07:04.why it is that I have lived in this area for year, I haven't changed,
:07:04. > :07:08.in fact I may have improved as a driver, and had yet another year of
:07:08. > :07:18.no claims, no accidents at all, and still my insurance premiums are
:07:18. > :07:23.going up. It isn't fair. Esure told us that Richard's original premium
:07:23. > :07:27.of �146 was down to an error by one of their staff who applied a
:07:27. > :07:31.discount that he wasn't entitled to Richard should have been pay morgue
:07:31. > :07:36.than double that but their explanation for the huge increase
:07:36. > :07:40.to �885 and their refusal to insure him again is one that you will hear
:07:40. > :07:46.from most insurance companies. They say a surge in personal injury
:07:46. > :07:50.claims and pay outs have pushed up premiums for everyone, leading to
:07:50. > :07:56.companies like esure temporarily suspending offering new policys in
:07:56. > :08:00.the worst affectedary tkwhra, is why Richard was left uninsurable.
:08:00. > :08:03.Because although this is a national problem in Bradford whiplash claims
:08:03. > :08:06.are six times the national average fpblt there has been a large
:08:06. > :08:11.increase in the number of personal injury claim but the amount per
:08:11. > :08:16.claim is going up. So we need to identify certainly how can we
:08:16. > :08:20.reduce the cost of claims, of making claims, but also look at the
:08:20. > :08:25.number of claims that are taking place, particularly those that are
:08:25. > :08:30.deemed to be fraudulent claim, the increase in the whiplash kaim cases
:08:30. > :08:34.that are coming forward, is reaching an unsustainable level.
:08:34. > :08:39.Across the country the number of personal injury claims has rocketed.
:08:39. > :08:43.Number of accidents is down. Many say that is because the so-called
:08:43. > :08:47.compensation culture is encouraging people to make claims whether they
:08:47. > :08:52.have been seriously injured or not. The whole industry has sprung up to
:08:52. > :08:57.encourage that. Claims management companies and some insurers can
:08:57. > :09:02.earn huge referral fees by selling on the details of people involved
:09:02. > :09:08.in accident, to Ieuan Wyn Jones no fee lawyers who can typically made
:09:08. > :09:12.�1350 for themselves on a whiplash settlement. The Government has
:09:12. > :09:18.announced it intends to ban referral fees and to reform the no
:09:18. > :09:21.win no fee system. But, I have to say that is little consolation for
:09:21. > :09:27.drivers facing soaring premise yourpls like Richard refused all
:09:27. > :09:32.together. If they are having claims that cost too much they are the
:09:32. > :09:37.problem, not the innocent careful drivers that can't get insurance or
:09:37. > :09:42.ridiculous premiums. The Government has said it plans to ban referral
:09:42. > :09:46.fees in personal injury claims. As we have heard, they are reckoned to
:09:46. > :09:50.be one of the key factors in the soaring costs. It is hoped this
:09:50. > :09:53.will happen some time in 2012. So let us fee the savings the industry
:09:53. > :09:59.is expected to make as a result really do make a difference to our
:09:59. > :10:05.premiums. And we were talking more about car insurance later on, but
:10:05. > :10:09.next, parking fines. I know that one of your biggest bugbear, I can
:10:09. > :10:13.see you going argh! Especially when the charge doesn't seem fair. Here
:10:13. > :10:16.is a classic example of that. People who didn't park anywhere
:10:16. > :10:20.they shouldn't but still got tickets totalling thousands of
:10:20. > :10:30.pounds, and indeed are being chased by debt collector, when all they
:10:30. > :10:30.
:10:30. > :10:36.have done is drive legitimately to their own homes. Hannah has a funny
:10:36. > :10:41.feel sheing is being watched. Every day, she has a sensation that
:10:41. > :10:45.someone, somewhere knows exactly what she is doing. They watch me
:10:45. > :10:49.coming in, they watch me when I leave, 24-hours a day. Musician
:10:49. > :10:54.Hannah lives in a flat above a shop on the high street in Chorlton in
:10:54. > :10:58.Manchester. Her only access to her property is through the back.
:10:58. > :11:02.moved in here two years ago and they were already outside. I have
:11:02. > :11:12.to go past them every time I leave the flat. It is frustrating.
:11:12. > :11:15.
:11:15. > :11:17.what is it she is so angry about? These. ANPR cameras are automatic
:11:17. > :11:24.number plate recognition cameras, which are positioned right outside
:11:24. > :11:29.her house. The service the car park and are operated by Excel Parking,
:11:29. > :11:35.which is a private parking company. Only they don't just photograph the
:11:35. > :11:40.cars in the car park. When I drive in through the road to the cash
:11:40. > :11:45.park my car is clocked by their camera because I don't buy a ticket
:11:45. > :11:50.because I am coming in, that sends a message, they send me a fine
:11:50. > :11:53.which goes up to �100. The problem is that the cameras cannot
:11:53. > :11:57.differentiate between the cars coming into park, and those who are
:11:57. > :12:02.just driving through. As a result, Hannah says she and her flat mate
:12:02. > :12:08.and all the visitors have between them managed to wrack up more than
:12:08. > :12:12.50 tickets which comes to more than �5,000 in fines. Hannah hasn't paid
:12:12. > :12:18.as she doesn't think she should have to. As far as she is concerned
:12:18. > :12:24.there is no other way for her to get on to her driveway. The letters
:12:24. > :12:28.are aggressive. I reply pilotly, then I ignore any future
:12:28. > :12:31.correspondence they send me. It is different if you live here. You
:12:31. > :12:34.feel responsible for friend, family, who visit, who get tickets, you
:12:34. > :12:40.feel you have to warn them in advance, if you get a ticket in the
:12:40. > :12:50.next few weeks don't pay it. That sets them on the path of months of
:12:50. > :12:53.faff with Excel. Her friend and fellow musician Aine has had two
:12:53. > :13:01.tickets. The company waived the first fine she disputed but they
:13:01. > :13:05.have not been so accommodating with the second one. I sent the same I
:13:05. > :13:10.mail and they refused to waive that one. On my second e-mail I provied
:13:10. > :13:15.them with a photograph of my carton driveway. This is nine months ago,
:13:15. > :13:19.the car is registered to my dad and he is being chased by debt
:13:19. > :13:24.collectors for the fine which is �100 he gets phone calls from them
:13:24. > :13:29.every day. Hannah contacted Excel with her registration number and
:13:29. > :13:33.for six months the letters and charges stopped. When she got a new
:13:33. > :13:38.car they started piling up again. Within the first two months of
:13:38. > :13:42.having the new car we had about five or six tickets. It got
:13:42. > :13:46.ridiculous. We decided the try and take a different tack and see what
:13:47. > :13:54.rights we had for living here. So we contacted local councillors to
:13:54. > :13:59.see if they could put a stop to it P Councillor Victor Chamberlain has
:13:59. > :14:03.agreed to him. He says because motorist worst age to use as a cut
:14:03. > :14:07.through for 40 years they should be able to do so again. What I am
:14:07. > :14:09.doing is working with residents and the MP to get the Manchester City
:14:10. > :14:13.Council to recognise the established right of way, and we
:14:13. > :14:16.are hoping this will mean that residents won't be impacted in the
:14:16. > :14:21.future because they won't, they have the right to access their
:14:21. > :14:27.driveway. Without being charged. But Excel Parking are taking a hard
:14:27. > :14:31.line on this. They dispute Hannah's version of event, particularly in
:14:31. > :14:35.regard to the number of tickets they have issued and point out they
:14:35. > :14:40.have cancelled many of the charge notices on appeal. But in any case,
:14:40. > :14:45.they stress they are the rightful occupier and that there is no right
:14:45. > :14:49.of way across the car park to any premises. With signs making it
:14:49. > :14:55.clear that it is private property. They say they have been totally
:14:55. > :14:58.reasonable with the resident, allowing them to register their
:14:58. > :15:03.vehicles so they can be exempt and investing in additional technology
:15:03. > :15:07.so they can filter the vehicles out. But they also say it is impossible
:15:07. > :15:13.for them to identify vehicles which are not registered at these address,
:15:13. > :15:17.or indeed keep up with changing tenants if they are not informed.
:15:17. > :15:20.They refute any suggestion that their letters are aggressive and
:15:20. > :15:30.stress they comply with all the requirements of the British Parking
:15:30. > :15:35.
:15:35. > :15:39.Hannon does not agree. I would love it to end. I understand it is a
:15:39. > :15:49.tricky situation but I would love it to be dealt with more competent
:15:49. > :15:50.
:15:50. > :15:54.lay and by different individuals who could help you out.
:15:54. > :15:57.competently. If, like them, you think you are being unfairly
:15:57. > :15:59.charged or penalised or if you are being pursued for a payment that
:15:59. > :16:03.you think is unjustified, then Michelle from Consumer Direct is
:16:03. > :16:06.here with some great tips on what to do. If you need to make a
:16:06. > :16:09.complaint about a company, there are a few things that you should do.
:16:09. > :16:12.If you are unsure of your legal rights, then take some advice
:16:12. > :16:16.before you speak to the company. It is important that you gather
:16:16. > :16:19.evidence if you complain, so keep a record of any telephone calls that
:16:19. > :16:22.you make and copies of any letters, and if the problem is about work
:16:22. > :16:25.you have had done, perhaps take photographs. You should speak to
:16:25. > :16:28.the company in question telling them what the problem is, remaining
:16:28. > :16:32.polite but firm at all times. Tell them what you want them to do and
:16:32. > :16:40.by when. Often speaking to them face to face will help you to
:16:40. > :16:43.resolve the matter without any further redress. If speaking to the
:16:43. > :16:47.company does not work, put your complaint in writing, tell them
:16:47. > :16:50.what you want to do, what is wrong, and by when you want the problems
:16:50. > :16:53.resolved. Keep a copy of your letter and get some proof of
:16:53. > :16:55.postage if possible. If you are still unable to get the matter
:16:56. > :16:59.resolved, then you may need to consider taking more formal action.
:16:59. > :17:02.If the company is a member of an approved traders scheme or a trade
:17:02. > :17:05.association, they may be able to offer you mediation or arbitration,
:17:05. > :17:08.or you may be able to consider an ombudsman scheme or an alternative.
:17:08. > :17:11.If you paid using credit or by credit card, and the goods or
:17:11. > :17:16.services cost more than �100, your finance company may be jointly
:17:16. > :17:18.liable and may be able to offer you further assistance. If your problem
:17:18. > :17:25.remains unresolved, then take advice from Consumer Direct or your
:17:25. > :17:28.local Citizens Advice Bureau. Earlier we heard how the cost of
:17:28. > :17:32.car insurance has soared over the last 12 months and it is new
:17:32. > :17:35.drivers who have been hit particularly hard. Their policies
:17:35. > :17:38.have gone up by way more than the average and it is reckoned that
:17:38. > :17:43.someone who has just got their licence will typically pay almost
:17:43. > :17:46.double the amount they would have done last year. The industry puts
:17:46. > :17:55.that down to a number of factors, including uninsured drivers and
:17:55. > :17:57.those false claims the government hopes to crack down on. But
:17:57. > :18:00.whatever their justification, the money most companies ask young
:18:00. > :18:07.drivers to pay has left a whole generation feeling like they are
:18:07. > :18:11.being priced off the road. Passing his driving test was a milestone
:18:11. > :18:15.for Peter and his mother, Julie. As a young man of 17, it meant he was
:18:15. > :18:20.on the road to independence. When I passed my test I was over the moon.
:18:20. > :18:23.I could not believe it, really. I thought it was great that I could
:18:23. > :18:26.finally go out and drive whenever I wanted to go. When Peter passed his
:18:26. > :18:34.test I was overjoyed. I was thrilled to bits. I immediately
:18:34. > :18:36.texted all my friends. I could not wait to get home and give him a big
:18:37. > :18:40.kiss and congratulate him. It was fantastic. But their initial
:18:40. > :18:44.excitement faded as soon as they started looking into the cost of
:18:44. > :18:47.insurance. Some of them were �17,000, which at that point, you
:18:47. > :18:54.just think, my God, what is going on? So, with quotes as high as
:18:54. > :18:57.�17,000, Julie started to look at other options. She got a quote from
:18:57. > :19:03.her insurance company to see how much it would cost to simply add
:19:04. > :19:13.Peter to her own policy. But that was not cheap either. I was insured
:19:13. > :19:16.at a good price of 500-odd pounds. I rang up asking if I could put my
:19:16. > :19:19.son on as another named driver and the quote was �3,895. That would be
:19:19. > :19:28.a whopping increase of �3,375, an amount that would put a massive
:19:28. > :19:32.strain on their finances. It is not actually much less than my mortgage.
:19:32. > :19:34.It would stand at about 350 a month, and on top of your finances, what
:19:34. > :19:42.you have already got, outgoing, month after month, that is
:19:42. > :19:46.astronomical. So Julie has not gone ahead with that. Peter may have
:19:46. > :19:51.passed his test but he is still not on the road. Well, not without a
:19:51. > :19:57.lift from Mum, anyway. My mates can drive and I cannot at the moment.
:19:57. > :20:01.You want to go and drive, but you cannot. You can go out with your
:20:01. > :20:05.mates, but it is not the same thing. You can be sat in the passenger
:20:05. > :20:08.seat, but you just want to get your hands on the steering wheel and
:20:08. > :20:12.drive yourself. Of course, Peter is just one of countless young drivers
:20:12. > :20:15.facing exactly the same problem. You pay so much money for the
:20:15. > :20:25.lessons and then they just cannot drive, can they? And that is all
:20:25. > :20:27.
:20:27. > :20:30.they want to do, isn't it, just drive? Just down the road, Peter's
:20:30. > :20:33.friend Rhys and his mother Joanne also struggled to find a quote they
:20:33. > :20:36.could afford. When I started looking at quotes, I was really
:20:36. > :20:45.shocked at the prices. The dearest one was �20,000, and I think the
:20:45. > :20:49.cheapest one was �2,000 plus. Luckily for them, Rhys's father is
:20:49. > :20:52.in the motor trade and he got a more reasonable quote through his
:20:52. > :20:57.trader policy. I think that worked out at �860, which is still an
:20:57. > :21:02.awful lot of money. The car is not really worth that. Another friend,
:21:02. > :21:07.Chase, also feels priced out of the insurance market. How are you doing,
:21:07. > :21:11.Chase, what are you going to do with your insurance? I am just
:21:11. > :21:14.going to have to go on my mum's insurance to make it cheaper. On my
:21:14. > :21:23.own, it is stupid money, about ten grand for myself. Quotes like these
:21:23. > :21:25.are typical for teenage drivers. Insurance companies say it is
:21:25. > :21:29.because statistics show that young drivers have more accidents. Simon
:21:29. > :21:33.Douglas from the AA explains. they do have an accident, they do
:21:33. > :21:36.tend to be more serious, and the average claim cost for a young
:21:36. > :21:41.driver is something like �5,000 or more, whereas for an older driver
:21:41. > :21:48.it is probably under �2,000. There is one option which could drive the
:21:48. > :21:51.boys' premiums down. One thing you might want to consider is these new
:21:51. > :21:55.insurance products, pay how you drive, where they fit the device in
:21:55. > :21:58.the car that measures how you drive as an individual and they give you
:21:58. > :22:01.a premium based on your own driving behaviour. Not the average for your
:22:01. > :22:04.whole peer group. For some people, if you're willing to be measured in
:22:04. > :22:07.this way, it can bring the cost of insurance down significantly.
:22:07. > :22:14.the meantime, the situation leaves their parents wondering if there
:22:14. > :22:20.was any point getting them lessons at this age. I just do not know
:22:20. > :22:24.where we're going to go. I am gutted for him, just gutted. They
:22:24. > :22:29.might as well just wait and let them get a job when they are 24, 25,
:22:29. > :22:32.it might be slightly cheaper. Well, the one good thing to come
:22:32. > :22:36.out of car insurance being so pricey is it has prompted a lot of
:22:36. > :22:39.scrutiny about people in a position to do something about it. The
:22:39. > :22:49.Office Of Fair Trading is currently investigating the issue and plans
:22:49. > :22:50.
:22:50. > :22:52.to publish its findings later this month. If it decides the industry
:22:52. > :22:56.is acting in an uncompetitive manner or treating customers
:22:56. > :23:00.unfairly, it may take further action.
:23:00. > :23:03.At a time when money is tighter than ever, you need to know that
:23:03. > :23:08.your cash is working hard for you, avoiding rip-offs and sharp
:23:08. > :23:12.practice along the way. So we have put together a booklet of tips and
:23:12. > :23:19.advice to help safeguard your money. You can find a link to the free
:23:19. > :23:22.guide on our website... To receive a copy in the post, send an A5
:23:22. > :23:28.self-addressed envelope to the address we will be giving at the
:23:28. > :23:31.end of the programme. Still to come on Rip Off Britain, we ask you to
:23:31. > :23:36.tell us what has left you feeling ripped off and we have been
:23:36. > :23:42.inundated with your stories. And this year we were able to solve
:23:42. > :23:45.some of your problems in person at the Rip Off Britain pop up shop.
:23:45. > :23:52.You will find you can probably save hundreds of pounds each year on
:23:52. > :23:56.your car and home insurance. Plus, we will have more examples of
:23:56. > :24:00.spiralling insurance costs. Should you have to pay higher premiums if
:24:00. > :24:03.you have not got a job? One of the reasons that they gave was that
:24:03. > :24:13.unemployed people have more time on their hands and they travel more to
:24:13. > :24:16.
:24:16. > :24:19.Next, how a series of unfortunate mistakes can spiral out of control,
:24:19. > :24:24.leaving one Rip Off Britain viewer paying more than she bargained for
:24:24. > :24:27.when she moved 2.5 miles down the road. In January this year, Jean
:24:27. > :24:30.and Bob Wharmby swapped life in a rural village just outside
:24:30. > :24:35.Lichfield in Staffordshire for a modern home in a new housing estate
:24:35. > :24:41.closer to town. They were looking forward to their retirement after
:24:41. > :24:44.spending their working lives running a hotel. We decided to move
:24:44. > :24:52.here because I knew the area, a lovely area, and convenient to the
:24:52. > :24:57.city centre. After the move, Jean told her car insurance company Saga
:24:57. > :25:00.about her change of address. But she was astonished to discover that
:25:00. > :25:06.the move just 2.5 miles down the road was to have an unwelcome
:25:06. > :25:14.impact on her premiums. She said, that is going to cost you a lot of
:25:14. > :25:18.money. I said, why? She said, well, it is the area you are in. We go on
:25:18. > :25:26.postcodes. So I said, how much is it going to cost me? Until August.
:25:26. > :25:29.This is from January to August. She said, �159. I was astounded. I said,
:25:29. > :25:36.I cannot understand why you say that because of the area and the
:25:36. > :25:43.postcode. Apart from the address, there was no change to the policy,
:25:43. > :25:46.no claims, and a clean licence. As she had already paid more than �300
:25:46. > :25:49.for a full year's cover back in August 2010, Jean could not
:25:49. > :25:57.understand why moving up the road should mean she should have to pay
:25:57. > :26:07.�159 extra. But she had no choice. She said, well, if you do not pay
:26:07. > :26:09.
:26:09. > :26:14.the extra, you car insurance will be cancelled. -- your car insurance.
:26:14. > :26:17.I said, but I have paid for a year, and she said, if you do not pay the
:26:17. > :26:20.extra for where you are now, it will be cancelled. I was in shock,
:26:20. > :26:26.really. Jean's husband, Bob, uses a different insurer for his car and
:26:26. > :26:29.when he told them he had moved, there was no change to his premium.
:26:29. > :26:32.Obviously because we were moving to a new house I telephoned my brokers.
:26:32. > :26:40.Back came the reply that the insurance would be exactly the same,
:26:40. > :26:47.no increase at all. I was absolutely amazed when Jean told me
:26:47. > :26:57.that hers had gone up by 150 odd quid. I did feel that Jean was
:26:57. > :26:57.
:26:57. > :27:01.being taken for a proverbial ride It turns out that at the heart of
:27:01. > :27:05.all this is a series of simple mistakes, but it took ten months
:27:05. > :27:08.and this programme getting involved before the mystery was solved. Saga
:27:08. > :27:11.tell us that when Jean rang them with her new postcode, the agent
:27:11. > :27:18.she spoke to unfortunately misheard it, and Jean did not pick up on
:27:18. > :27:28.that when it was read back. As far as Saga is concerned, that is her
:27:28. > :27:47.
:27:47. > :27:50.But does Jean deserve all the blame? She did later ring Saga
:27:50. > :27:56.about her postcode again and the correct details did not make it
:27:56. > :27:59.onto the company's systems that time either. Saga put that down to
:27:59. > :28:08.an innocent error on their part. In fact, the situation was only
:28:08. > :28:11.resolved when we got in touch with the company. Since then, Saga has
:28:11. > :28:17.apologised to Jean, refunded the additional premiums, and given her
:28:17. > :28:23.a further �100 compensation. So, is there anything you can do to try
:28:23. > :28:28.and keep a lid on escalating car insurance premiums? Chas Hallett
:28:28. > :28:31.from "What Car?" magazine has some advice. Of course, there are huge
:28:31. > :28:34.number of factors insurance companies use when they are
:28:34. > :28:36.calculating insurance. One of the ways you can save lots of money is
:28:36. > :28:39.shop around. Do not just automatically renew your insurance.
:28:39. > :28:43.Get on the internet, get on the phone, because you can save
:28:43. > :28:47.hundreds of pounds by swapping insurers. Make sure your car is
:28:47. > :28:50.valued correctly. Lots of insurance companies use bandings, so you
:28:50. > :28:57.could say your car is worth 9,995, rather than �10,000, and that could
:28:57. > :29:00.have a big difference on your insurance premium. You could also
:29:00. > :29:03.make sure your car has all the right security systems on it. They
:29:03. > :29:07.may be expensive, but things like alarm systems and electronic
:29:07. > :29:10.trackers can reduce your insurance premium. Make sure you give the
:29:10. > :29:14.insurance company your correct employment details because your job
:29:14. > :29:23.and what you do for a living can have a big bearing on the cost of
:29:23. > :29:26.insurance. Also, consider where your car is kept overnight. If you
:29:26. > :29:33.have a garage or even a driveway, it can reduce your insurance
:29:33. > :29:43.premium considerably. The other thing you could do is do not
:29:43. > :30:01.
:30:01. > :30:04.overestimate the mileage you do for the year. The minimum number of
:30:04. > :30:07.miles possible is the best for lower insurance premiums. We're
:30:07. > :30:10.here in Manchester where Rip Off Britain have opened their very
:30:10. > :30:13.first pop up shop. It has been a weekend of consumer advice from our
:30:13. > :30:16.team of experts and BBC Learning have been helping people of all
:30:16. > :30:20.ages improve their maths skills. But one area of our shop which has
:30:20. > :30:23.been particularly busy is the video booth that we set up for people to
:30:23. > :30:26.record their gripes and to get everything off their chests. The
:30:26. > :30:29.biggest cause of complaint we have heard in the gripe box by far is
:30:29. > :30:33.car insurance. My son is 18 and currently taking lessons. To insure
:30:33. > :30:37.him on a 1.1 Vauxhall Corsa is going to cost in excess of �5,000.
:30:37. > :30:40.They have put it up from 370 to 490. My eldest son, who has been having
:30:40. > :30:43.driving lessons, and we wanted to insure him on our car so we could
:30:43. > :30:47.take him out for additional driving experience, and we have been quoted
:30:47. > :30:50.�4,000. It had gone up from �750 to just over 1,000. I had to pay
:30:50. > :30:55.�2,000 just to insure it. What a rip-off. That is a lot of car
:30:55. > :31:05.insurance gripes. A real bugbear of yours when it comes to all sorts of
:31:05. > :31:05.
:31:05. > :31:08.insurance is automatic renewal. Les popped in after he realised that
:31:08. > :31:11.the automatic renewal quote from his insurer was �150 more expensive
:31:11. > :31:14.than the same insurance for new customers. I thought, I will just
:31:14. > :31:17.check and see if the prices are still reasonable, and when I
:31:17. > :31:21.checked on the website, there was a massive difference in the price
:31:21. > :31:24.that I was being quoted. So I rang the company to ask them why, why
:31:24. > :31:34.was there a difference in the cover, was it something that I missed, and
:31:34. > :31:37.
:31:37. > :31:41.there was nothing. The cover was They draw you in with that
:31:41. > :31:46.attractive premium. Then they start trying to rash et it up in the
:31:46. > :31:52.later years. You go on line and shop round, not with your existing
:31:52. > :31:55.insurer, go on a comparison site and see what you could get. You
:31:55. > :32:00.will find you can save hundreds each year on your car and home
:32:00. > :32:07.insurance. All you have to do is pick up the phone and say I've had
:32:07. > :32:12.a look round and realise I could get the same policy �100 cheaper.
:32:12. > :32:17.They are often change it because they don't want to lose you. You
:32:17. > :32:21.have to be prepared to shop round. There is no reward for loyalty.
:32:21. > :32:26.Stay alert. Thank you for coming in I will use the advice I have been
:32:26. > :32:30.given. For both the home insurance and for the car insurance, and for
:32:30. > :32:34.Holiday Inn insurance as well. team of experts have been able to
:32:34. > :32:43.help a lot of people here today. I hope that you at home have also
:32:43. > :32:49.been able to pick up useful tips. Now back to car insurance. And we
:32:49. > :32:52.have already heard how the cost of your premiums can be a bit of a
:32:52. > :32:56.postcode lottery. There can be plenty of other factors that mean
:32:56. > :33:03.you could pay a lot more, and they might have nothing at all to do
:33:03. > :33:10.with how good a driver you are or whether you have had an accident.
:33:11. > :33:15.It could come down to the whether you have a job. Aside from a home,
:33:15. > :33:21.a car is one of the biggest investments most of us will ever
:33:21. > :33:27.make. So it is important to look after it. Living in the heart of
:33:27. > :33:31.the Peak District, having a car is vital for Martin, and now more than
:33:31. > :33:34.ever, 12 months ago he lost his job and he has been busy looking for
:33:34. > :33:39.another one ever since. The car is very important. I need it to pick
:33:39. > :33:45.my daughter up. She lives eight miles away. I need it to go to the
:33:45. > :33:51.Jobcentre, 13 miles away. The nearest town is eight miles away.
:33:51. > :33:57.It is quite rural round here, no big shops. In June, when Martin
:33:57. > :34:02.needed to renew his car insurance, he called Endsleigh to take them up
:34:02. > :34:08.on the renewal quote they had sent. He was asked a few questions
:34:08. > :34:15.including his current employment status. And then came the bombshell.
:34:15. > :34:19.They said I was unemmind they would have to recalculate the premium.
:34:19. > :34:25.They went away for a minute and it came back over �200 more than it
:34:25. > :34:30.would have been if I had been employed, so I was completely, I
:34:30. > :34:37.was astounded by it. I asked why, and they said, it was something to
:34:37. > :34:45.do with their underwriters, that was it. The actual quote for
:34:45. > :34:52.Martin's 1.3 litre car had gone up from just over � 350 to �565. That
:34:52. > :34:58.is a 62% increase. The former IT manager says it can't be down to
:34:58. > :35:02.his performance behind the wheel. Well, I've got over nine years no
:35:02. > :35:07.claims, I've not had an accident in over ten year, I don't drive like
:35:07. > :35:11.an it yacht. I'm mot a boy racer. I don't have a boy racer's car. It
:35:11. > :35:14.was the fact I was unemployed. Martin decided to try elsewhere but
:35:14. > :35:22.was shocked to find that he got the same response from other companies
:35:22. > :35:27.when he tried to get quotes. found a lot of companies won't
:35:27. > :35:32.insure unemployed drivers. I rang them up, asked them why, they said
:35:33. > :35:37.it was they don't insure unemployed people. One was a famous
:35:38. > :35:43.supermarket chain. They won't insure you. It made me mad because
:35:43. > :35:47.I buy my shopping there why can't I buy insurance there? Very
:35:47. > :35:51.frustrated he decided to sigh how Endsleigh's instant online quote
:35:51. > :35:57.compared with what he had been offered over the phone. He tried
:35:57. > :36:02.employing as an unemployed driver and was quoted a hefty �945 for the
:36:02. > :36:06.year. That is �400 higher than his renewal quote. What would they have
:36:06. > :36:16.charged if he had been working? Let's see, as Martin keys in his
:36:16. > :36:17.
:36:17. > :36:23.previous employment details. quote is �380 which is ridiculous.
:36:23. > :36:28.It is �600 less if I am employed than if I was unemployed. I am
:36:28. > :36:32.astounded. It makes me feel a victim, or discriminated against
:36:32. > :36:37.that I am unemployed. Martin couldn't understand why not having
:36:37. > :36:41.a job made such a difference to his insurance. But searching on line
:36:41. > :36:46.for arpbgs he found various possible explanations from other
:36:46. > :36:49.drivers who had been in a similar situation. One of the reasons they
:36:49. > :36:53.gave was that unemployed people have more time on their hands and
:36:53. > :36:57.they travel more to interview, and another reason was because if you
:36:57. > :37:04.are unemployed you are more likely to make a false claim to get more
:37:04. > :37:10.money. It makes you feel like you're a criminal. Why would they
:37:10. > :37:18.think you might make money out of a claim? I don't like my car gets
:37:18. > :37:22.scratched. Insurance insiders say many factors are taken into
:37:22. > :37:26.consideration. The new tyre, brake, perhaps theirs cred it rates isn't
:37:26. > :37:30.as good. Cred it rating, the better it is the better the deal you get
:37:30. > :37:36.from your bank. So they are rating factors that are considered by the
:37:36. > :37:41.insurance company. We asked Endsleigh why Martin's job status
:37:41. > :37:47.should affect premiums. And they said that though they work with a
:37:47. > :37:51.range of insurers, they just the intermediary and don't set the
:37:51. > :37:56.rates. While they take equality very seriously, they say certain
:37:56. > :38:01.group, such as the unemployed, offer an increased risk,
:38:01. > :38:05.statistically, and this can be reflected by some insurers and
:38:05. > :38:08.higher rates. They said they are happy to speak to Martin to find
:38:08. > :38:14.way forward. But they are too late. The only way he could find an
:38:14. > :38:21.affordable premium and keep his car on the road was to agree to a �400
:38:21. > :38:25.excess, with a different insurer. So for Martin, it has been a double
:38:26. > :38:30.blow for his pocket. Not just losing his job and his income, but
:38:30. > :38:34.in his eyes, being penalised by his insurance company for doing so. As
:38:34. > :38:44.far as he is concerned his circumstances may have changed, but
:38:44. > :38:48.his driving skills have not. If like many of our viewers you that
:38:48. > :38:52.had to insure your car or get inu insurance for a younger member of
:38:52. > :38:58.the family the premiums have probably made your eyes water. An
:38:58. > :39:03.increase of 40% is commonplace and for young drivers they are being
:39:03. > :39:06.quoted in the thousands. What is going on? I have come to the
:39:07. > :39:11.Association of British Insurers hopefully to get some answers. I am
:39:11. > :39:14.joined by Nick Starling the director of general insurance here
:39:14. > :39:20.at the Association of British Insurers. Nick, car insurance gone
:39:20. > :39:26.up by on average round 40%, what is going on? Car insurance has indeed
:39:26. > :39:30.increased by a great deal in recent year, and that is three factor, the
:39:30. > :39:38.increased instance of bodily injury claims people are making, it has
:39:38. > :39:42.increased fraud and the problem of uninsured driving. Young people are
:39:42. > :39:47.getting extortionate Premiers quoted, �12,000 in one case, why
:39:47. > :39:51.are they so high? Unfortunately, a lot of young people in this country
:39:51. > :39:54.are poor drivers, they are poorly train and the testing system is
:39:54. > :40:00.failing them. Sadly, if you are a young male driver in particular,
:40:00. > :40:05.you are ten times more likely than I am or you are to be killed or
:40:05. > :40:09.seriously injured in an accident. At least one MP has called Britain
:40:09. > :40:13.the whiplash capital of Europe. If you are aware that people are
:40:13. > :40:16.claiming in some cases unjustifiably, why can your
:40:16. > :40:20.association not actually clampdown on those insurance companies that
:40:20. > :40:23.are making those claims possible? We can't ourselves clampdown on
:40:23. > :40:28.what is happening with these claims. We have this compensation culture
:40:28. > :40:34.which is leading people to think if they have had a minor accident they
:40:34. > :40:39.can make a claim. We need to put a stop to it and enable premiums to
:40:39. > :40:45.come down. You will know it is not people saying I think I will make a
:40:45. > :40:48.claim. It is companies persuading them to do it. There is something
:40:48. > :40:51.one has to say. If you have been injured, or made ill and it is not
:40:51. > :40:55.your fault then you need to be helped. The problem is when that
:40:55. > :40:59.has happened to you, you are a valuable property and lots of
:40:59. > :41:06.people want to get to you to sell you a replacement vehicle to, get
:41:06. > :41:10.to you, for an injury claim. We all know what happens and we think that
:41:10. > :41:15.is that merry-go-rounds that needs to be stopped. In a disfunctional
:41:15. > :41:18.system people need to behave in dysfunctional ways. What can't the
:41:18. > :41:23.Association of British Insurers say to members do not get involved in
:41:23. > :41:26.this side of the business? Stop it. We have argued that you have to ban
:41:26. > :41:30.referral fees and the Government agrees with that. They are going to
:41:30. > :41:33.do that. We have mentioned the fact young people are getting huge
:41:34. > :41:37.quotes for their insurance you, have given me a reason why that is.
:41:37. > :41:40.Why can we not start to tackle the problem now, because basically what
:41:40. > :41:44.you are doing is you are not only keeping young people off the road,
:41:44. > :41:48.but you are obviously setting up a situation where many of them will
:41:48. > :41:51.think they should then not bother. We want Government to do something
:41:51. > :41:55.about this, if your programme can help the Government to realise it
:41:55. > :41:59.has to be done, that would be great, because there are fundamental
:41:59. > :42:02.problems we believe round the testing and training of young
:42:02. > :42:08.drivers. We think there should be a structure learning period so you
:42:08. > :42:17.have a log book so it indicates how many lessons you have had, we think
:42:17. > :42:20.there should be restrictions after the test. Thank you. Here at Rip
:42:20. > :42:24.Off Britain we are ready to investigate more of your stories.
:42:25. > :42:30.Confused over bills? Trying to wade through never ended small print
:42:30. > :42:34.that leaves you totally confused? might have been stupid for not
:42:34. > :42:38.reading out our haven't took it in. I could kick myself. Uninsure what
:42:38. > :42:43.to do when you discover you have lost out and that great deal has
:42:43. > :42:47.ended up costing you money. thought this cannot be true. It is
:42:47. > :42:50.totally unsebl -- unacceptable. I was so angry. You might have a
:42:50. > :42:55.cautionary tale of your own and would be happy to share the
:42:55. > :42:58.mistakes you have made with us, so others don't do the same. No-one
:42:58. > :43:08.knows about this so this is very strange to me. I would like to get
:43:08. > :43:17.
:43:17. > :43:24.this much clearer. You can write to us. Or send us an e-mail. The rip