0:00:02 > 0:00:06We asked you to tell us who's left you feeling ripped off
0:00:06 > 0:00:10and you contacted us in your thousands by post, e-mail,
0:00:10 > 0:00:12even stopping us on the streets.
0:00:12 > 0:00:15And the message couldn't be clearer.
0:00:15 > 0:00:18I think there's a lot of hidden information about your bills
0:00:18 > 0:00:20that should be made a lot more clear.
0:00:20 > 0:00:22I don't feel I get treated how I should be.
0:00:22 > 0:00:25You've told us with money tighter than ever, you need to be sure
0:00:25 > 0:00:28that every pound you spend is worth it.
0:00:28 > 0:00:31How do I get my money back? Cos I just think I'm entitled to it.
0:00:31 > 0:00:34So whether it's a deliberate rip-off, a simple mistake
0:00:34 > 0:00:36or a catch in the small print,
0:00:36 > 0:00:38we'll find out why it is that you're out of pocket
0:00:38 > 0:00:40and what you can do about it.
0:00:40 > 0:00:44Keep asking the questions, keep... Go to the top if you have to.
0:00:44 > 0:00:48We do get results, I mean, that's the interesting thing.
0:00:48 > 0:00:51Your stories. Your money. This is Rip-Off Britain.
0:00:53 > 0:00:56Hello, and welcome to Rip-Off Britain,
0:00:56 > 0:00:59the programme that's always ready to fight your corner,
0:00:59 > 0:01:02even though it might seem that no-one else will.
0:01:02 > 0:01:05And today we're going to be taking on an industry
0:01:05 > 0:01:09that every year, without fail, according to our mailbag,
0:01:09 > 0:01:11is one of your biggest bugbears.
0:01:11 > 0:01:13We're talking about insurance -
0:01:13 > 0:01:16a topic that upsets you more than just about anything else.
0:01:16 > 0:01:19Because whether it's a claim on your home or your holiday,
0:01:19 > 0:01:23it seems there are no end of reasons why your policy won't pay out.
0:01:23 > 0:01:26Now sometimes that's because you've been caught out by the small print
0:01:26 > 0:01:30or indeed, the terms of your cover simply aren't clear enough.
0:01:30 > 0:01:33On other occasions, perhaps the company's just messed up.
0:01:33 > 0:01:34But whatever the explanation,
0:01:34 > 0:01:37when you need help but your claim's turned down,
0:01:37 > 0:01:41the consequences can be absolutely devastating.
0:01:41 > 0:01:46Later in the programme, we'll meet a family who know that only too well.
0:01:46 > 0:01:48On top of everything else they've been through,
0:01:48 > 0:01:51they now face losing their home.
0:01:51 > 0:01:54Without the insurance payout, I can't afford to keep the house
0:01:54 > 0:01:56because I can't afford the mortgage payments.
0:01:56 > 0:02:00And the man who took on his insurers and won
0:02:00 > 0:02:03after they deemed that even though he was bedbound in hospital,
0:02:03 > 0:02:06he was still able to work.
0:02:06 > 0:02:07As one expert said to me -
0:02:07 > 0:02:11medical expert - you'd have to be in a coma or dead to get a payout.
0:02:11 > 0:02:14Now, it's bad enough that insurance companies expect us
0:02:14 > 0:02:18to have read every bit of small print that's in their policies
0:02:18 > 0:02:21but sometimes it's seems they expect you to read between the lines
0:02:21 > 0:02:23and work out what's NOT included.
0:02:23 > 0:02:25For the couple we're about to meet,
0:02:25 > 0:02:28the thing they weren't covered for couldn't have been more basic.
0:02:31 > 0:02:35When Sam Wyatt and his wife Kim planned a second honeymoon,
0:02:35 > 0:02:37they decided to do it in style.
0:02:37 > 0:02:41They plumped for a cruise, starting and finishing in Miami
0:02:41 > 0:02:44and flying to and from there from Heathrow via New York.
0:02:45 > 0:02:49We went on a cruise four years ago for our honeymoon
0:02:49 > 0:02:51and we could only afford a week back then,
0:02:51 > 0:02:53so we decided to go for two weeks this time.
0:02:53 > 0:02:56So October 2011, we saved up,
0:02:56 > 0:02:59we went for two weeks, flew out to Miami
0:02:59 > 0:03:01and sailed around the Caribbean.
0:03:02 > 0:03:06And in case anything went wrong, they'd bought travel insurance.
0:03:06 > 0:03:08Sam had done his research
0:03:08 > 0:03:12and chosen the Super Saver policy from Holiday Extras.
0:03:12 > 0:03:15At £32, it wasn't the cheapest quote they'd seen,
0:03:15 > 0:03:19but at first glance, it seemed to cover most eventualities,
0:03:19 > 0:03:21such as flight cancellation or lost baggage.
0:03:21 > 0:03:23Of course, they hoped they wouldn't need it
0:03:23 > 0:03:28and right until the end, the trip was all that they'd hoped for.
0:03:28 > 0:03:30Ah, the cruise was lovely. It was really nice.
0:03:30 > 0:03:33It was even better than when we went the first time.
0:03:33 > 0:03:36We did lots of nice things, did some water sports, that was really fun.
0:03:36 > 0:03:37Had a great time.
0:03:38 > 0:03:41The couple arrived at Miami Airport
0:03:41 > 0:03:43for the first leg of their flight home.
0:03:43 > 0:03:46But 1,000 miles away in New York,
0:03:46 > 0:03:49a heavy snowstorm was causing chaos.
0:03:49 > 0:03:52It's only the fourth time in 135 years
0:03:52 > 0:03:57that snow has fallen in New York's Central Park in October.
0:03:57 > 0:03:59Sam and Kim's flight was grounded.
0:03:59 > 0:04:00They were stuck in Miami,
0:04:00 > 0:04:04but their luggage was already on its way to the UK.
0:04:04 > 0:04:08It was a bit of a nightmare, really. We had no bags, we had no clothes.
0:04:08 > 0:04:11- We had no nothing.- We had no money.
0:04:13 > 0:04:16The couple were told by the airline to check into a hotel
0:04:16 > 0:04:18and come back two days later.
0:04:19 > 0:04:22Frustrating as that was, they were confident
0:04:22 > 0:04:25that thanks to their insurance, they didn't have to worry
0:04:25 > 0:04:29about the extra costs for accommodation and living expenses.
0:04:29 > 0:04:31We thought we were covered for everything,
0:04:31 > 0:04:33so even though we might have to pay out
0:04:33 > 0:04:35for extra nights' hotel stays and things like that,
0:04:35 > 0:04:39we thought we'd be able to claim when we got home.
0:04:39 > 0:04:42When they arrived home three days later than scheduled,
0:04:42 > 0:04:45they immediately put in a claim with Holiday Extras
0:04:45 > 0:04:49for the money they'd spent - £280.46.
0:04:49 > 0:04:51I was confident we'd bought the right cover.
0:04:51 > 0:04:55We just filled out the forms and sent them off, and I thought,
0:04:55 > 0:04:57"That's the end of it. We'll get a cheque in the post."
0:04:59 > 0:05:03But a month later, with their tans and their holiday memories fading,
0:05:03 > 0:05:05the couple got a letter from Holiday Extras
0:05:05 > 0:05:08to say they wouldn't be getting any of their money back.
0:05:08 > 0:05:10I couldn't believe it, to be honest with you.
0:05:10 > 0:05:13It just seemed that it was one big rip-off.
0:05:13 > 0:05:17- Horrible end to the holiday wasn't it?- Well, yeah.
0:05:17 > 0:05:21I just couldn't believe they could wriggle out of paying the claim.
0:05:21 > 0:05:24It seemed their Super Saver policy
0:05:24 > 0:05:26wasn't so super after all
0:05:26 > 0:05:29because it didn't cover something most people would consider
0:05:29 > 0:05:31a vital part of their holiday -
0:05:31 > 0:05:33the entire return journey.
0:05:33 > 0:05:36Apart from cases of medical emergency,
0:05:36 > 0:05:39their policy didn't protect them for that leg of the trip.
0:05:39 > 0:05:42Sam immediately rang Holiday Extras
0:05:42 > 0:05:44and when you hear this recording of the call,
0:05:44 > 0:05:48you'll see why he found their explanation so surprising.
0:05:48 > 0:05:49SAM:
0:05:51 > 0:05:52AGENT:
0:06:11 > 0:06:13Yes, you heard it right.
0:06:13 > 0:06:17It's not just what your policy says that matters -
0:06:17 > 0:06:20it's how you interpret what it doesn't say.
0:06:20 > 0:06:25No-one wanted to take responsibility for what had happened.
0:06:25 > 0:06:26'They wanted to shift it on to me.
0:06:26 > 0:06:30'Oh, it's my fault. It's my fault I bought the wrong cover.'
0:06:30 > 0:06:34I should have read the policy wordings and interpreted every word.
0:06:34 > 0:06:36'It was my fault I didn't have'
0:06:36 > 0:06:38the cover I thought I had.
0:06:40 > 0:06:44With his complaint at a standstill, Sam contacted the airline direct.
0:06:44 > 0:06:48They agreed to give them £178 towards their expenses
0:06:48 > 0:06:49as a goodwill gesture,
0:06:49 > 0:06:55but that still leaves the couple out of pocket by more than £100.
0:06:55 > 0:06:59They're angry that it wasn't their insurance policy that paid out.
0:06:59 > 0:07:03We paid out for travel insurance. They should have paid the claim.
0:07:04 > 0:07:08Even without the extra hurdle of reading between the lines,
0:07:08 > 0:07:13Sam and Kim feel the 14-page policy document they had to wade through
0:07:13 > 0:07:15wasn't easy to understand.
0:07:15 > 0:07:17It's a very lengthy document
0:07:17 > 0:07:19and I think it's unrealistic
0:07:19 > 0:07:23to assume that any ordinary person that purchases a policy like that
0:07:23 > 0:07:27is going to actually sit down and read all of the small print.
0:07:29 > 0:07:31But Holiday Extras don't agree.
0:07:31 > 0:07:34The underwriter for their insurance
0:07:34 > 0:07:37told us the couple's flights were delayed rather than cancelled,
0:07:37 > 0:07:40and that Sam had bought their most basic policy for long-haul travel.
0:07:40 > 0:07:42They say...
0:07:46 > 0:07:49But with such a wide choice of cover available...
0:08:07 > 0:08:10Sam and Kim have learned the hard way
0:08:10 > 0:08:14that your travel insurance may not cover you in the way you expect.
0:08:14 > 0:08:16You just think, well, next time we go on holiday,
0:08:16 > 0:08:19perhaps we won't bother looking into holiday insurance
0:08:19 > 0:08:20if this is what happens.
0:08:23 > 0:08:25Well, for something that seems so simple,
0:08:25 > 0:08:28buying holiday insurance can be fraught with pitfalls.
0:08:28 > 0:08:31Here's travel expert Simon Calder
0:08:31 > 0:08:34with advice on how to avoid being caught out.
0:08:34 > 0:08:36When you're booking a holiday,
0:08:36 > 0:08:39of course it makes sense to book insurance at the same time,
0:08:39 > 0:08:42but beware - some really obvious things
0:08:42 > 0:08:44that you might assume are covered
0:08:44 > 0:08:45may not be.
0:08:47 > 0:08:50What could be better than a fly-drive holiday?
0:08:50 > 0:08:53A very popular way to get around
0:08:53 > 0:08:57and many travel insurance policies cover thefts from cars.
0:08:57 > 0:09:03But be careful - some of them only apply between 8am and 8pm.
0:09:04 > 0:09:08Life begins at 50 these days for so many people,
0:09:08 > 0:09:11but not if you're planning an extended trip.
0:09:11 > 0:09:12Would you believe that
0:09:12 > 0:09:14higher premiums kick in
0:09:14 > 0:09:17as soon as you're a day over 50?
0:09:18 > 0:09:21Finally, a couple of positive clauses
0:09:21 > 0:09:25that will actually benefit you. Columbus says
0:09:25 > 0:09:28if you're heading for Australia, then your policy will cover you
0:09:28 > 0:09:30for walking up the Sydney Harbour Bridge.
0:09:30 > 0:09:33I've tried it. It's very scary.
0:09:33 > 0:09:37And Hole In One Insurance covers you for that unlikely golfing event
0:09:37 > 0:09:39for all the drinks you'll need to buy
0:09:39 > 0:09:41in the clubhouse at the 19th hole.
0:09:44 > 0:09:47Now, around half of all adults in the UK
0:09:47 > 0:09:50have some sort of life insurance policy -
0:09:50 > 0:09:53the idea being, of course, that if the worst actually happens,
0:09:53 > 0:09:57our loved ones will have some financial support and security.
0:09:57 > 0:09:59But how many of us fully understand
0:09:59 > 0:10:01the implications of what we've signed up to
0:10:01 > 0:10:04or how devastating the effects can be, if it turns out
0:10:04 > 0:10:08all those premiums haven't bought the protection that we expected?
0:10:08 > 0:10:12This next story is about a family who were horrified to discover
0:10:12 > 0:10:17a time restriction on a policy they believed lasted a full five years.
0:10:17 > 0:10:19When you hear what happened to them,
0:10:19 > 0:10:20if you've got life insurance,
0:10:20 > 0:10:23you might just want to go and check the wording.
0:10:25 > 0:10:27It was January 2011
0:10:27 > 0:10:32when Kim Holland thought it would be worth her husband seeing a doctor.
0:10:32 > 0:10:35But she had no idea it might be serious.
0:10:37 > 0:10:39Paul didn't really have any symptoms.
0:10:39 > 0:10:42Um, he sort of had a kind of a symptom in January
0:10:42 > 0:10:46where he would be taking calls at work
0:10:46 > 0:10:48and if he had to write things down,
0:10:48 > 0:10:51he'd find that he was almost going dyslexic.
0:10:51 > 0:10:53So he was working from home one day
0:10:53 > 0:10:57and I said, "I've made an appointment for the doctor's for you,
0:10:57 > 0:10:58"just to have a check-up."
0:10:58 > 0:11:00The doctor sent him for a scan
0:11:00 > 0:11:04and that's when he was diagnosed with a brain tumour.
0:11:04 > 0:11:06The news hit the family very hard.
0:11:08 > 0:11:10I just felt like someone stabbed me in the heart.
0:11:10 > 0:11:13'Shock, disbelief,
0:11:13 > 0:11:15'just...unbelievable.'
0:11:15 > 0:11:18I felt I was living in a dream
0:11:18 > 0:11:22just because he'd been so healthy, never ill or anything.
0:11:22 > 0:11:24Yeah, same, just devastated, really.
0:11:24 > 0:11:27I think you never think it's going to happen to you
0:11:27 > 0:11:30and all of a sudden, your world comes crashing down in seconds
0:11:30 > 0:11:31and it's...it's awful.
0:11:33 > 0:11:35By the next month, the doctors had concluded
0:11:35 > 0:11:38that Paul's tumour was inoperable, and terminal.
0:11:40 > 0:11:43They thought he may only have four or five years left.
0:11:43 > 0:11:46And while no-one could have predicted any of this,
0:11:46 > 0:11:49Paul had taken steps to ensure that should the worst happen,
0:11:49 > 0:11:51his family would be protected.
0:11:53 > 0:11:54We've always had life insurance,
0:11:54 > 0:11:57Paul always made sure we were covered, you know,
0:11:57 > 0:11:59from when we were married.
0:12:00 > 0:12:05In 2006, Paul had taken out a five-year life insurance policy
0:12:05 > 0:12:06with Royal Liver.
0:12:07 > 0:12:12So after receiving his diagnosis, he phoned the company to discuss it.
0:12:12 > 0:12:16A lady took the telephone call and said she would get back to him
0:12:16 > 0:12:18and when she got back to him,
0:12:18 > 0:12:22she said that it wasn't valid.
0:12:22 > 0:12:25'We were just shocked, in shock, absolute shock.
0:12:25 > 0:12:27'We just couldn't believe it.'
0:12:27 > 0:12:29Royal Liver told Paul
0:12:29 > 0:12:32that for his policy to pay out for a terminal illness,
0:12:32 > 0:12:35that illness would have had to have been diagnosed
0:12:35 > 0:12:37before the final 12 months of the policy.
0:12:39 > 0:12:43So as Paul's was only spotted later, he wouldn't be covered.
0:12:43 > 0:12:46And though such a condition is common in policies of this type,
0:12:46 > 0:12:48Kim considers it very unfair.
0:12:48 > 0:12:50'Because we hadn't given them a year's notice.
0:12:50 > 0:12:53'Paul hadn't said, "I've got a year now,'
0:12:53 > 0:12:57"I'm giving you a year's notice because I have a terminal illness,"
0:12:57 > 0:12:59which is absolutely stupid
0:12:59 > 0:13:03because how can anybody tell how long they've got to live?
0:13:03 > 0:13:06'What we thought we bought was a five-year policy'
0:13:06 > 0:13:09but in actual fact, it isn't a five-year policy,
0:13:09 > 0:13:11it's only a four-year policy.
0:13:11 > 0:13:14So, you know, why would anybody in their right mind
0:13:14 > 0:13:17take out a policy like that? You just wouldn't do it.
0:13:19 > 0:13:22Unfortunately for the Hollands, the clause is based on
0:13:22 > 0:13:26an industry-wide definition of "terminal illness"
0:13:26 > 0:13:30which is that death occurs within 12 months of diagnosis.
0:13:30 > 0:13:34But it's a clause that's frequently missed or, indeed, misunderstood.
0:13:36 > 0:13:40The only other way that Paul's insurance would pay out
0:13:40 > 0:13:44would be if he died in the policy's few remaining months
0:13:44 > 0:13:47so although this seemed unlikely, he continued paying the premiums.
0:13:49 > 0:13:51And as his health deteriorated,
0:13:51 > 0:13:54his family's future was very much on his mind.
0:13:54 > 0:13:56Paul never stopped talking about it.
0:13:56 > 0:13:59You'd go in every single day to the hospice
0:13:59 > 0:14:02and he was just so worried about us,
0:14:02 > 0:14:05what would we do, who would look after us.
0:14:06 > 0:14:09Despite the initial prognosis,
0:14:09 > 0:14:11very sadly, last December, Paul died.
0:14:11 > 0:14:15He did everything he could for us, all the time.
0:14:15 > 0:14:19I can't even put it into words how good he was. He was brilliant.
0:14:20 > 0:14:23Paul died after his policy had run out
0:14:23 > 0:14:28and as his terminal illness had been diagnosed within its last few months,
0:14:28 > 0:14:32his death didn't meet either of the terms under which
0:14:32 > 0:14:34his life insurance would pay out.
0:14:34 > 0:14:37So as well as dealing with their grief,
0:14:37 > 0:14:40his family have had to face up to leaving their home.
0:14:40 > 0:14:45'Without the insurance payout, I can't afford to keep the house'
0:14:45 > 0:14:48because I can't afford the mortgage payments a month.
0:14:48 > 0:14:52So we just... I've had to put the house on the market.
0:14:52 > 0:14:54We did everything together in this house.
0:14:54 > 0:14:57Paul and I did the garden. It's a family house.
0:14:57 > 0:15:01The children were brought up here. It's very sad.
0:15:01 > 0:15:05I'm so upset about it. It's our family home, we've grown up here.
0:15:05 > 0:15:08All our memories of Dad are here.
0:15:08 > 0:15:11For us to leave, it is quite devastating.
0:15:12 > 0:15:16Insurance company Royal Liver is now part of the Royal London Group.
0:15:16 > 0:15:19Now when we contacted them, they reiterated the terms
0:15:19 > 0:15:23under which Paul's policy would have paid out
0:15:23 > 0:15:24and explained that...
0:15:34 > 0:15:35They said they're...
0:15:38 > 0:15:40..but stress it's...
0:15:56 > 0:16:00And they said if Kim believes the insurance was mis-sold,
0:16:00 > 0:16:02she should raise that with the advisory firm
0:16:02 > 0:16:04responsible for the sale.
0:16:07 > 0:16:09Meanwhile, Kim is preparing to leave the family home.
0:16:09 > 0:16:15Well, it's all nearly completed now. I've got a buyer for it
0:16:15 > 0:16:18and I'm probably due to move out within five to six weeks.
0:16:18 > 0:16:20I wouldn't want anybody to go through
0:16:20 > 0:16:22what I'm having to go through, to lose their house.
0:16:22 > 0:16:25I would tell them to read their policy
0:16:25 > 0:16:28and I would certainly tell them to not take that policy
0:16:28 > 0:16:30if it's got that clause
0:16:30 > 0:16:33where you have to give a year's notice for a terminal illness
0:16:33 > 0:16:36because you just never, ever know what's around the corner.
0:16:46 > 0:16:49Thousands of you write to us with your complaints and gripes
0:16:49 > 0:16:50but we've come to Gateshead
0:16:50 > 0:16:53to meet as many of you as we can face to face.
0:16:53 > 0:16:56MUSIC PLAYS
0:16:56 > 0:17:01Overnight, we've transformed this space into our very own pop-up shop
0:17:01 > 0:17:04and inside, we have a whole team of experts
0:17:04 > 0:17:07ready to answer your consumer questions.
0:17:11 > 0:17:15Now, insurance policies are supposed to give us total peace of mind
0:17:15 > 0:17:17just in case something unexpected happens.
0:17:17 > 0:17:21But as we hear all too often, I'm afraid that's not always the case.
0:17:21 > 0:17:24When Craig Crawford started work as a bus driver,
0:17:24 > 0:17:27he was advised to take out extra insurance
0:17:27 > 0:17:31to protect him if he lost his licence through ill health.
0:17:31 > 0:17:35As far as I was aware, I was covered from the moment I signed the paper.
0:17:35 > 0:17:39Around about eight month later or so, I was admitted to hospital.
0:17:39 > 0:17:42I'd had a seizure while I was driving my car.
0:17:42 > 0:17:45They found I had a rare condition on the brain.
0:17:45 > 0:17:47I returned to work, my licence was revoked.
0:17:47 > 0:17:50When I came to claim on this insurance,
0:17:50 > 0:17:51I received a letter to say
0:17:51 > 0:17:55- I wasn't going to receive any payout.- Giving what reason?
0:17:55 > 0:17:58That I fell short of the qualifying period.
0:17:58 > 0:18:01How long had you been paying into this scheme?
0:18:01 > 0:18:03It was around about seven, eight month.
0:18:03 > 0:18:06I was two or three weeks short of this qualifying period.
0:18:06 > 0:18:09So, James, you've got the actual document.
0:18:09 > 0:18:11Where does it say that on the document?
0:18:11 > 0:18:13You can see here, buried right in the middle of the small print
0:18:13 > 0:18:16that 39 weeks there, very hard to read at all
0:18:16 > 0:18:19and if you weren't even given that paperwork at the beginning,
0:18:19 > 0:18:22it sounds like you do have a valid claim and, you know,
0:18:22 > 0:18:25if I were you, I'd write them some strongly worded letters
0:18:25 > 0:18:28and say, you know, "If you're not willing to compensate me,"
0:18:28 > 0:18:31you can take that complaint on to the Financial Ombudsman Service.
0:18:31 > 0:18:33A couple of avenues open to you there.
0:18:33 > 0:18:36Still a chance you'll be able to get your hands on this money.
0:18:36 > 0:18:37Just keep trying.
0:18:39 > 0:18:42We've come up with a place where you can share your consumer complaints.
0:18:42 > 0:18:45We call it our gripe box -
0:18:45 > 0:18:48a place to really speak your mind.
0:18:48 > 0:18:50And it seems that the price of car insurance
0:18:50 > 0:18:51is pretty high on the agenda.
0:18:52 > 0:18:56No it is, it's ridiculous to try and get insured on your car.
0:18:56 > 0:18:58We pay, like, over £1,000 per year, each.
0:18:58 > 0:19:02Car insurance, it's like that's just going straight through the roof.
0:19:02 > 0:19:03It's virtually impossible.
0:19:03 > 0:19:06You end up paying triple what the car's actually worth.
0:19:06 > 0:19:09I've paid £2,200 for me first year's insurance
0:19:09 > 0:19:11and that's just a total rip-off.
0:19:11 > 0:19:13New driver Natasha is also in danger
0:19:13 > 0:19:17of being forced off the road by the high price of her premiums.
0:19:17 > 0:19:20I passed my test in November.
0:19:20 > 0:19:23I feel my car insurance is a lot more than what it should be.
0:19:23 > 0:19:25OK, so what are we talking about here?
0:19:25 > 0:19:28- £5,000.- £5,000 a year?
0:19:28 > 0:19:29- A year.- Wow.
0:19:29 > 0:19:31- It's a lot when you've got a baby too.- Of course,
0:19:31 > 0:19:35you could buy a new car for that. You're coming up for renewal now?
0:19:35 > 0:19:38So why don't we put your details into one of the comparison sites
0:19:38 > 0:19:41and see what they come up with here?
0:19:41 > 0:19:43It's coming up with some quotes here at the moment.
0:19:43 > 0:19:48So far, we haven't got any better than £2,500
0:19:48 > 0:19:50which is still an enormous amount of money
0:19:50 > 0:19:52but one thing you might be able to consider
0:19:52 > 0:19:55for bringing your premiums down further next time
0:19:55 > 0:19:56is a number of new companies
0:19:56 > 0:19:59that have popped up over the last couple of years
0:19:59 > 0:20:03that put a black box in the back of your car...
0:20:03 > 0:20:06- Oh, yeah.- ..and then monitor how you drive,
0:20:06 > 0:20:09and so if they see that you're driving responsibly,
0:20:09 > 0:20:11that brings your premiums down even further.
0:20:12 > 0:20:15We'll be having a closer look at how those black boxes work
0:20:15 > 0:20:17a little later in the programme
0:20:17 > 0:20:20although Natasha's not keen on the idea.
0:20:20 > 0:20:23It would probably be my last resort if I had to
0:20:23 > 0:20:24but I probably would do it.
0:20:24 > 0:20:27You know, unfortunately, this is the plight of the young drivers
0:20:27 > 0:20:29these days and your car's not worth much.
0:20:29 > 0:20:33No. You know, I mean, it's crazy, you're paying a premium
0:20:33 > 0:20:35that's almost three times worth what your car's worth.
0:20:35 > 0:20:38Keep your fingers crossed that when you come round for renewal again
0:20:38 > 0:20:41in a year's time, those premiums will come down.
0:20:45 > 0:20:49Later in the programme, the gadget supposed to bring down the cost of your car insurance.
0:20:49 > 0:20:51But does it really work?
0:20:51 > 0:20:55I still believe premiums are far too excessive.
0:20:55 > 0:20:59The other big insurance companies do also need to take on this new technology.
0:21:02 > 0:21:06Next, a spirited man who's really taken on the big boys.
0:21:06 > 0:21:09Chris Hargreaves is battling to change a type of insurance
0:21:09 > 0:21:12that as far as he's concerned, turned out to offer almost
0:21:12 > 0:21:14no protection whatsoever.
0:21:14 > 0:21:16He's worried that what caught HIM out
0:21:16 > 0:21:21could lead to the same nasty shock for tens of thousands of other people relying on similar policies.
0:21:21 > 0:21:25So in a way he started a one-man campaign,
0:21:25 > 0:21:27to make sure that what HE went through can't happen
0:21:27 > 0:21:29to anybody else.
0:21:33 > 0:21:37Chris Hargreaves loves the chauffeur business he's spent
0:21:37 > 0:21:40the last 15 years building up.
0:21:40 > 0:21:42But in 2009, all that was threatened
0:21:42 > 0:21:45when he had to spend three months in hospital with internal bleeding,
0:21:45 > 0:21:49a blood clot on the lung, and suspected cancer.
0:21:49 > 0:21:51To have started the business at 21
0:21:51 > 0:21:55and to have been passionate about building a business and working
0:21:55 > 0:22:00for myself, this was the first time ever I've not been able to work.
0:22:00 > 0:22:05And to see my business being financially damaged as well,
0:22:05 > 0:22:08you know, it was...heartbreaking.
0:22:10 > 0:22:12Amidst all the uncertainty,
0:22:12 > 0:22:15Chris was very grateful for the support of his parents.
0:22:15 > 0:22:18It was very, very difficult, seeing him
0:22:18 > 0:22:21so poorly and still trying to run the business
0:22:21 > 0:22:25and the hours that we work and everything else.
0:22:25 > 0:22:28We did find it very hard at the time.
0:22:28 > 0:22:33And as if all that wasn't enough, Chris's wife was made redundant.
0:22:33 > 0:22:36We had to live on the statutory Jobseeker's Allowance
0:22:36 > 0:22:41which was about £62.50 a week, which left us having to go
0:22:41 > 0:22:45cap in hand to her parents who had to buy our food and our essentials
0:22:45 > 0:22:47because we just couldn't afford it.
0:22:47 > 0:22:52But Chris was relieved he'd taken out Income Protection Insurance,
0:22:52 > 0:22:57so that in a situation where he couldn't work, he'd be covered for any financial losses.
0:22:57 > 0:23:00But when he tried claiming on the policy,
0:23:00 > 0:23:03he was told by his insurer, Scottish Provident,
0:23:03 > 0:23:05that it WASN'T going to pay out.
0:23:05 > 0:23:09As far as they were concerned, despite being bedbound in hospital,
0:23:09 > 0:23:12Chris WAS able to work.
0:23:12 > 0:23:16Now I've been racking my brains for three years
0:23:16 > 0:23:21and I still do not know a job that I could have done from my hospital bed.
0:23:21 > 0:23:25Chris's claim was rejected because his policy didn't simply assess
0:23:25 > 0:23:28whether his ill-health stopped him from doing his own work.
0:23:28 > 0:23:32It tested whether he was capable of doing ANY work.
0:23:32 > 0:23:38So his insurers wrote to say they'd considered whether he could do any basic work tasks such as -
0:23:38 > 0:23:41walking. Could he walk 200 metres on a level surface without
0:23:41 > 0:23:45stopping or severe discomfort?
0:23:45 > 0:23:48Lifting. Was he able to lift a kilogramme from table height
0:23:48 > 0:23:50and carry it five metres?
0:23:50 > 0:23:54Using a pen, a pencil or indeed, keyboard.
0:23:54 > 0:23:59Hearing. Could he understand someone speaking in a normal voice?
0:23:59 > 0:24:02Speech. Could he make himself understood in a quiet room?
0:24:02 > 0:24:07And vision. Was he able to read 16-point print using spectacles
0:24:07 > 0:24:09or other aids?
0:24:09 > 0:24:12Scottish Provident concluded that Chris WAS able to do
0:24:12 > 0:24:15two of these tasks while he was in hospital.
0:24:15 > 0:24:18So he could work.
0:24:18 > 0:24:19The way that they're worded,
0:24:19 > 0:24:24they're so fluffy that I might not be able to read 16-point print
0:24:24 > 0:24:29because I'm 95% blind, but the insurance company comes along
0:24:29 > 0:24:33with a giant magnifying glass and gives it you
0:24:33 > 0:24:35and now I can make out that text,
0:24:35 > 0:24:38or I can blink twice for no and once for yes
0:24:38 > 0:24:40so that means I can communicate!
0:24:40 > 0:24:43Chris wouldn't have been assessed this way
0:24:43 > 0:24:47if he'd had what's called an Own Occupation Policy.
0:24:47 > 0:24:50But because his job as a chauffeur was considered high risk,
0:24:50 > 0:24:54he was only able to get cover described as "any occupation".
0:24:54 > 0:24:58And claims under this sort of policy are subject to these tests.
0:24:58 > 0:25:02But Chris now thinks it's unlikely he'd EVER have met
0:25:02 > 0:25:04the criteria for his cover to pay out.
0:25:04 > 0:25:07As one expert said to me, medical expert, you have to be in a coma
0:25:07 > 0:25:09or dead to get a payout,
0:25:09 > 0:25:14which the likelihood of you being in a coma are very low.
0:25:14 > 0:25:18On the basis that his doctors agreed he was unable to work,
0:25:18 > 0:25:21Chris complained to the Financial Ombudsman Service.
0:25:21 > 0:25:25They initially ruled there wasn't sufficient evidence
0:25:25 > 0:25:28to challenge Scottish Provident's decision NOT to pay out.
0:25:28 > 0:25:31My insurer said, "Just cos I was in hospital for three months
0:25:31 > 0:25:35"doesn't mean I was ill, there's no evidence whatsoever
0:25:35 > 0:25:39"to clarify I was ill."
0:25:39 > 0:25:42Scottish Provident argued that although they appreciated
0:25:42 > 0:25:46Chris was very ill, the information they had been provided with showed
0:25:46 > 0:25:50that the criteria under which they would've paid out hadn't been met.
0:25:50 > 0:25:51But refusing to give up,
0:25:51 > 0:25:55Chris went back with medical evidence to back up his claim.
0:25:55 > 0:25:57And THAT did the trick.
0:25:57 > 0:26:00The ombudsman finally ruled that they should pay out,
0:26:00 > 0:26:04and with no right of appeal, the insurer Scottish Provident
0:26:04 > 0:26:06had no choice but to pay up.
0:26:06 > 0:26:10Chris received a total of £4,800 for his insurance claim,
0:26:10 > 0:26:13plus £100 compensation.
0:26:13 > 0:26:16I just burst out crying.
0:26:16 > 0:26:21All I saw was I'd won and it was such a big weight off my shoulders.
0:26:22 > 0:26:25But that's NOT the end of the story.
0:26:25 > 0:26:28Policies like the one Chris had are common throughout the industry.
0:26:28 > 0:26:32So, believing them to be unfair and stacked against the customer,
0:26:32 > 0:26:34he started a one-man campaign
0:26:34 > 0:26:37to try and change Income Protection Insurance.
0:26:39 > 0:26:41And it very quickly got noticed.
0:26:41 > 0:26:44I just set up a Twitter account
0:26:44 > 0:26:50and had a handful of people following me who then started
0:26:50 > 0:26:54to tell me that there was a serious issue with these policies.
0:26:54 > 0:27:00And as the followers grew and became into the thousands
0:27:00 > 0:27:05it became quite clear that these policies don't work.
0:27:09 > 0:27:12Chris now has attracted over 13,000 followers
0:27:12 > 0:27:16to his Angry Policyholder campaign's Twitter page.
0:27:16 > 0:27:20And James Daley from Which? Magazine thinks that that can only be good news.
0:27:20 > 0:27:23People aren't questioning the small print
0:27:23 > 0:27:26and I think that companies have got away with it for far too long,
0:27:26 > 0:27:29creating policies that are complex and working in ways
0:27:29 > 0:27:31to ensure that they don't have to pay out
0:27:31 > 0:27:33when customers really need it.
0:27:33 > 0:27:35And so, it seems that finally there's a bit of a head of steam
0:27:35 > 0:27:39behind a movement for change here and hopefully,
0:27:39 > 0:27:42we'll see more insurers following the lead of some of the big ones
0:27:42 > 0:27:44who are starting to have better quality policies
0:27:44 > 0:27:45and higher pay-out rates.
0:27:45 > 0:27:52Insurance giant Aviva has already altered its income protection policies to make them "less severe".
0:27:52 > 0:27:56And now the company he took on is changing theirs as well.
0:27:56 > 0:28:00Scottish Provident told us that although its income protection policies
0:28:00 > 0:28:01have been...
0:28:06 > 0:28:08Chris's case showed them there is...
0:28:15 > 0:28:18So alongside other insurers, they're...
0:28:21 > 0:28:24as well as reviewing which occupations are eligible
0:28:24 > 0:28:28for their "own occupation" cover in order to make their products...
0:28:31 > 0:28:35The changes will come into effect next year.
0:28:35 > 0:28:37But it's a great success for Chris
0:28:37 > 0:28:40and he's determined to carry on campaigning.
0:28:40 > 0:28:45I set this campaign up to try and make a difference
0:28:45 > 0:28:51but it's still so upsetting and distressing that I've had to do it.
0:28:51 > 0:28:53I think it's disgusting that anybody can be treated
0:28:53 > 0:28:55like the way that we were treated.
0:28:59 > 0:29:02When you feel you've had a raw deal, it can be hard to know
0:29:02 > 0:29:04what to do or where to turn.
0:29:04 > 0:29:07So to help you, we've put together a new booklet full of
0:29:07 > 0:29:10practical tips and advice.
0:29:10 > 0:29:12You can download the free guide on our website.
0:29:16 > 0:29:19Or to receive a copy in the post, send an A5 stamped
0:29:19 > 0:29:22and self-addressed envelope to the address that we'll give you
0:29:22 > 0:29:24at the end of the programme.
0:29:24 > 0:29:25In our last series,
0:29:25 > 0:29:29we investigated the spiralling cost of car insurance,
0:29:29 > 0:29:35especially after so many of you told us about the eye-wateringly high quotes that you were getting,
0:29:35 > 0:29:40which, in some cases, put the cost of driving totally beyond reach.
0:29:40 > 0:29:43But it seems that there may be a way that you can bring
0:29:43 > 0:29:45those premiums down.
0:29:47 > 0:29:49Drivers of ALL ages have noticed a whopping leap
0:29:49 > 0:29:53in the cost of their car insurance in recent years.
0:29:53 > 0:29:57In fact, the AA says premiums have more than doubled since 2008.
0:29:57 > 0:30:01But there's one group that's been particularly badly hit -
0:30:01 > 0:30:02young drivers,
0:30:02 > 0:30:07who say that high premiums are pricing them off the road.
0:30:07 > 0:30:12In our last series, Peter Nolan and mum Julie told us about
0:30:12 > 0:30:15the eye-watering quotes that they'd had after Peter passed his test.
0:30:15 > 0:30:17Some of them were £17,000,
0:30:17 > 0:30:22which at that point you just think, "Oh, my God! What's going on?!"
0:30:22 > 0:30:25Julie just couldn't afford to insure Peter,
0:30:25 > 0:30:29leaving him still dependent on her for lifts.
0:30:30 > 0:30:32You want to go and drive, but you can't.
0:30:32 > 0:30:34You can go out with your mates, but it is not the same thing.
0:30:34 > 0:30:39It's young men aged between 17 and 22
0:30:39 > 0:30:41who pay the most for car insurance on average.
0:30:41 > 0:30:45Almost three times the typical premium for all age groups.
0:30:45 > 0:30:49The cheapest price I got when I was first looking for quotes
0:30:49 > 0:30:50was around four or five grand.
0:30:50 > 0:30:55The dearest going up to 27, 28 grand which is ridiculous.
0:30:55 > 0:30:57But there IS a way that you can bring those prices down...
0:30:57 > 0:31:01provided that is, that you're a good driver.
0:31:01 > 0:31:04And it's by fitting one of these little black boxes to your car.
0:31:04 > 0:31:07Insurance companies can monitor how well you drive
0:31:07 > 0:31:10in order to more accurately calculate your risk
0:31:10 > 0:31:12and your premiums.
0:31:14 > 0:31:16It's called telematics technology.
0:31:16 > 0:31:20And it's being used by an increasing number of insurance companies.
0:31:20 > 0:31:23It means if you're in a high-risk group,
0:31:23 > 0:31:25but you drive in a low-risk way,
0:31:25 > 0:31:27your insurance could come right down.
0:31:27 > 0:31:32Of course, if you drive in a way that makes you a higher than average risk, it could go up even more!
0:31:35 > 0:31:39Julie considered having a box like this fitted last year,
0:31:39 > 0:31:43but at the time, the premiums were still too high.
0:31:43 > 0:31:47Then she heard that quotes for drivers with telematics
0:31:47 > 0:31:49had tumbled, so she decided to give it a go.
0:31:51 > 0:31:53Julie went with Co-operative Insurance,
0:31:53 > 0:31:55who fitted the box earlier this year.
0:31:55 > 0:31:59And Amy Kilmartin from the company can explain how it works.
0:31:59 > 0:32:01This is the Smartbox,
0:32:01 > 0:32:04and dependent upon the car, it's wired into the vehicle.
0:32:04 > 0:32:07It's not visible to the customer.
0:32:07 > 0:32:10It looks at things such as speeding, cornering, acceleration,
0:32:10 > 0:32:13the time of day that the car is driven
0:32:13 > 0:32:15and all that data is fed back to our servers
0:32:15 > 0:32:19to give us a reading on how Julie and Peter drive their vehicle.
0:32:21 > 0:32:24It's had one instant and long-awaited result.
0:32:24 > 0:32:28As you can see, Peter is getting in that car without mum Julie.
0:32:30 > 0:32:32Because as soon as she had the box put in,
0:32:32 > 0:32:36the quote for an annual policy that also covered Peter
0:32:36 > 0:32:40came out at a more affordable £1,400.
0:32:40 > 0:32:42Still not cheap by any means,
0:32:42 > 0:32:46but a massive improvement on the thousands she'd been quoted before.
0:32:46 > 0:32:49And Peter's over the moon to be behind the wheel at last.
0:32:49 > 0:32:51It's nice to be on the road.
0:32:51 > 0:32:54I like driving around being independent, really.
0:32:54 > 0:32:57And there are benefits for Julie as well.
0:32:57 > 0:32:59Her driving is also monitored.
0:32:59 > 0:33:01When I first got it installed, I did think
0:33:01 > 0:33:04"Oh, I'm going to be conscious of this box in the car,"
0:33:04 > 0:33:07but I've adjusted to it really well.
0:33:07 > 0:33:08Obviously they monitor you,
0:33:08 > 0:33:11so if there's any issues, they'll alert you,
0:33:11 > 0:33:13and if you are driving well,
0:33:13 > 0:33:16every 90 days they'll readjust your monthly payments.
0:33:16 > 0:33:21On the computer, my mum can log into the insurance company's website
0:33:21 > 0:33:24and you can, from there, check how well you're doing.
0:33:24 > 0:33:27They give you a score from 1 to 5.
0:33:27 > 0:33:28This is your dashboard,
0:33:28 > 0:33:31and it's broken down into speed, acceleration,
0:33:31 > 0:33:36braking, cornering too fast and driving at dangerous times.
0:33:36 > 0:33:38I've been doing very good on that recently,
0:33:38 > 0:33:41apart from accelerating and braking, which I need to work on.
0:33:43 > 0:33:47Julie is thrilled she can finally get the cover her son needs
0:33:47 > 0:33:49to drive by himself.
0:33:49 > 0:33:53And the icing on the cake? Her premiums have gone down as well.
0:33:53 > 0:33:56The safer you drive, your policy is reduced.
0:33:56 > 0:33:58If you don't drive safe, your policy's increased.
0:33:58 > 0:34:00I've just had a letter of congratulations
0:34:00 > 0:34:02saying I've been driving well
0:34:02 > 0:34:06and I've now got an £80 reduction in the cost.
0:34:08 > 0:34:10Insurance companies believe that
0:34:10 > 0:34:14the technology not only reduces premiums, but also accidents.
0:34:15 > 0:34:18At Insure The Box, we have around about 75,000 customers
0:34:18 > 0:34:20with these devices in the car.
0:34:20 > 0:34:24Having the box in the car means that you're much less likely
0:34:24 > 0:34:28to have an accident and it cuts that accident rate by about half.
0:34:28 > 0:34:31The telematics box also allows you
0:34:31 > 0:34:35to assess actual driving performance when it comes to renewal.
0:34:35 > 0:34:38So we don't have to take into account
0:34:38 > 0:34:42the traditional factors of the type of car,
0:34:42 > 0:34:45your gender, your age, etc.
0:34:45 > 0:34:48We can base the renewal price on actual driving behaviour.
0:34:48 > 0:34:53So if you have driven well, we reflect that in our renewal price.
0:34:54 > 0:34:57Back in the 1980s,
0:34:57 > 0:34:59the idea that cars could have smart technology like this
0:34:59 > 0:35:02was the stuff of TV sci-fi.
0:35:03 > 0:35:05But now it's a reality,
0:35:05 > 0:35:08and one that could save you money.
0:35:09 > 0:35:12Constant monitoring won't suit everyone,
0:35:12 > 0:35:15especially as some policies may question
0:35:15 > 0:35:17whether you're driving too often at times when
0:35:17 > 0:35:20the risk of accidents is statistically higher,
0:35:20 > 0:35:21such as night-time.
0:35:21 > 0:35:24But Julie, still angry about what Peter would have to pay
0:35:24 > 0:35:28for insurance without telematics,
0:35:28 > 0:35:30is pleased that technology is becoming more common.
0:35:30 > 0:35:33I still believe premiums are far too excessive.
0:35:33 > 0:35:36Lots of kids who've just passed are never going to get to drive.
0:35:36 > 0:35:38The other big insurance companies
0:35:38 > 0:35:41do also need to take on this new technology.
0:35:41 > 0:35:43The Smartbox is making me a safer driver.
0:35:43 > 0:35:44I'm always on me toes and alert
0:35:44 > 0:35:46to what's going on around me when I'm on the road.
0:35:51 > 0:35:53We get a lot of letters and emails
0:35:53 > 0:35:56about the stories we're going to be hearing about today.
0:35:56 > 0:35:59Insurance is one of the subjects that you write to us about
0:35:59 > 0:36:03more than just about anything else and really, that's not surprising.
0:36:03 > 0:36:08The UK insurance industry is the third largest in the world,
0:36:08 > 0:36:11with some 290,000 employees
0:36:11 > 0:36:13providing cover of one sort or another
0:36:13 > 0:36:16for just about every adult in the country.
0:36:16 > 0:36:20But what do we really know about the policies that we're getting?
0:36:20 > 0:36:23You've got to read the small print.
0:36:23 > 0:36:26There's too many clauses for you to understand,
0:36:26 > 0:36:29for the normal layman to understand, anyway.
0:36:29 > 0:36:31None of my friends read their insurance policies,
0:36:31 > 0:36:33but I'm sure there are people that do. There must be.
0:36:33 > 0:36:34I mean, they're there for a reason.
0:36:36 > 0:36:38The majority of insurance claims are successful.
0:36:38 > 0:36:41But of course, it's the ones that are rejected
0:36:41 > 0:36:43that we usually hear about.
0:36:43 > 0:36:46And when we do, though it can seem as if
0:36:46 > 0:36:49insurance companies are just trying to wriggle out of paying,
0:36:49 > 0:36:52all too often it turns out
0:36:52 > 0:36:55that you've bought a policy that was not right for you
0:36:55 > 0:36:58and that never gave you the cover that you thought it would.
0:36:58 > 0:37:01It's not only claims you write to us about.
0:37:01 > 0:37:04Insurance premiums are a bone of contention with you as well,
0:37:04 > 0:37:08and not just because you think that too often they're too expensive.
0:37:08 > 0:37:11It's also because it's not always clear
0:37:11 > 0:37:14exactly how those premiums are worked out.
0:37:14 > 0:37:18They'll typically be worked out according to your postcode,
0:37:18 > 0:37:21but it could be that the insurance company will assess your risk
0:37:21 > 0:37:24based on your age, your job, and whether or not you're married
0:37:24 > 0:37:26to the person with whom you're living.
0:37:26 > 0:37:29But by the end of this year, thanks to a ruling by the European Court,
0:37:29 > 0:37:33it'll be illegal for them to set rates based on gender.
0:37:33 > 0:37:34So whereas previously,
0:37:34 > 0:37:38favourable rates of car insurance may have been available
0:37:38 > 0:37:40exclusively for women drivers,
0:37:40 > 0:37:43from now on, that won't be the case.
0:37:46 > 0:37:48But could we all end up paying
0:37:48 > 0:37:51higher premiums in the coming months?
0:37:51 > 0:37:52After this year's heavy rain,
0:37:52 > 0:37:57British insurers face the worst bills for flood damage since 2007,
0:37:57 > 0:38:00so it's quite possible that their increased costs
0:38:00 > 0:38:02will get passed on to customers.
0:38:07 > 0:38:09With insurance premiums and problems
0:38:09 > 0:38:11pretty high on your list of concerns,
0:38:11 > 0:38:13I've come here, to the headquarters
0:38:13 > 0:38:15of the Association of British Insurers
0:38:15 > 0:38:17to talk to their top man and find out why it is
0:38:17 > 0:38:21that so many people think that insurers are more interested
0:38:21 > 0:38:25in looking after themselves than their customers.
0:38:26 > 0:38:29Sad to say this, but it is pretty clear
0:38:29 > 0:38:31that most people that write to us,
0:38:31 > 0:38:34and indeed, I think quite a large proportion of the population,
0:38:34 > 0:38:36still feel insurers are people who are much more interested
0:38:36 > 0:38:39in protecting themselves than looking after their customers.
0:38:39 > 0:38:42How do you answer that criticism?
0:38:42 > 0:38:44Insurers want to look after their customers,
0:38:44 > 0:38:47and they want to give them cover
0:38:47 > 0:38:50which suits their needs and which pays out when they need it.
0:38:50 > 0:38:51And when things go wrong,
0:38:51 > 0:38:54we want to make sure that they're put correct quickly.
0:38:54 > 0:38:57You say that, but we have caseloads of people
0:38:57 > 0:39:00who say that they have fought tooth and nail
0:39:00 > 0:39:03to try and get compensation from insurers,
0:39:03 > 0:39:05and insurers just are very good
0:39:05 > 0:39:08at wriggling out of ever paying anything back.
0:39:08 > 0:39:11Well, insurers pay out £10 million a day on domestic property claims,
0:39:11 > 0:39:12£22 million a day on motor claims,
0:39:12 > 0:39:16and that's not wriggling out of their obligations.
0:39:16 > 0:39:19The key is to be careful when you buy the insurance.
0:39:19 > 0:39:21Think carefully about what your needs are,
0:39:21 > 0:39:22what your cover needs are,
0:39:22 > 0:39:25and read the policy documents when they arrive.
0:39:25 > 0:39:28I know it's boring, but read them when they arrive.
0:39:28 > 0:39:30But even if you read them, sometimes the terms and conditions
0:39:30 > 0:39:32are so complex and complicated,
0:39:32 > 0:39:34that people actually still don't necessarily understand
0:39:34 > 0:39:36what they're signing up to.
0:39:36 > 0:39:38Shouldn't the onus be on you
0:39:38 > 0:39:41to make those contracts a lot less complicated?
0:39:41 > 0:39:43Well, insurers try to write them in plain English
0:39:43 > 0:39:46and they need to produce a Key Facts document
0:39:46 > 0:39:48which makes clear what the main issues round cover are,
0:39:48 > 0:39:51and that should make things clear to the consumer.
0:39:51 > 0:39:54So can you honestly say you think that insurance companies
0:39:54 > 0:39:55go far enough to ensure
0:39:55 > 0:39:59that when they sell a policy to a member of the public,
0:39:59 > 0:40:02that that consumer is getting the best deal possible?
0:40:02 > 0:40:05Our members want to sell products which suit the people
0:40:05 > 0:40:06to whom they're selling them,
0:40:06 > 0:40:10which deliver when they need to and deliver on time,
0:40:10 > 0:40:12and it's in no-one's interest for that to go wrong.
0:40:12 > 0:40:14They don't want to have lots of complaints
0:40:14 > 0:40:16coming to programmes like yours,
0:40:16 > 0:40:18they don't want lots of complaints going to the ombudsman,
0:40:18 > 0:40:21and they'll work hard to make sure that doesn't happen.
0:40:21 > 0:40:24One final question about the amount that you charge as premiums,
0:40:24 > 0:40:27because people find that their insurance on the whole
0:40:27 > 0:40:30tends to go up year after year.
0:40:30 > 0:40:32Well, premiums don't necessarily go up year on year.
0:40:32 > 0:40:34People tend to notice when they do go up,
0:40:34 > 0:40:36and they notice less when they go down.
0:40:36 > 0:40:39Insurers have to have reserves for big events.
0:40:39 > 0:40:41But equally, if you have a year in which
0:40:41 > 0:40:43a very large number of events happen,
0:40:43 > 0:40:46then premiums have got to come in to cover that.
0:40:46 > 0:40:48And the last couple of years, they've paid out a huge amount
0:40:48 > 0:40:52in burst pipe claims, which is less noticeable for people,
0:40:52 > 0:40:55and we haven't seen a massive increase in premiums as a result.
0:40:57 > 0:40:59Confused over your bills?
0:40:59 > 0:41:02Trying to wade through never-ending small print?
0:41:02 > 0:41:03You can write to us:
0:41:13 > 0:41:14Or send us an email:
0:41:18 > 0:41:20The Rip-Off team is ready and waiting
0:41:20 > 0:41:22to investigate your stories.
0:41:24 > 0:41:27As we've seen, you only have to miss a few words
0:41:27 > 0:41:30in an insurance policy for you to discover
0:41:30 > 0:41:32that you're simply not protected in the way you thought.
0:41:32 > 0:41:35And because of that, there're many, many people
0:41:35 > 0:41:38paying premiums on policies that won't pay out
0:41:38 > 0:41:39should they need to make a claim.
0:41:39 > 0:41:41Well, we know it's really boring,
0:41:41 > 0:41:44ploughing through all that small print, but unless you do it -
0:41:44 > 0:41:47or you're prepared to take advice from someone who will do it for you -
0:41:47 > 0:41:50sooner or later you could end up with a nasty surprise.
0:41:50 > 0:41:52And if you're like the people we've been hearing from,
0:41:52 > 0:41:54that could happen at the worst possible moment.
0:41:54 > 0:41:57And unfortunately it obviously happens quite a lot,
0:41:57 > 0:42:00because the number of letters that we get on this topic suggests
0:42:00 > 0:42:03that there really is a lot more insurance companies themselves
0:42:03 > 0:42:06could do to make their policies a lot easier to understand.
0:42:06 > 0:42:09So don't let up, and make sure that we know
0:42:09 > 0:42:12if you think you've been treated unfairly.
0:42:12 > 0:42:15So meanwhile, let's just say that we will see you the next time,
0:42:15 > 0:42:17when we'll be looking at even more things
0:42:17 > 0:42:20that have left you feeling ripped-off.
0:42:20 > 0:42:22- But until then, from all of us, bye-bye.- Bye-bye.- Bye.
0:42:43 > 0:42:46Subtitles by Red Bee Media Ltd