Car Insurance by Mad-Monkey

Evening Chaps!

Quick question for someone with a lot more knowledge than me... :)

My girlfriend has passed her driving test and looking to get insurance (practically impossible) and we have found a company here. however the paperwork has come through and now I'm not sure. The letter they have sent says its arranged through Armitage Insurace Services LTD which according to Companies House the company is dissolved. The FSA number is correct at 306627 though although the LTD bit is missing.

They are a broker for Highway - Part of LV. Now on the details form my girlfriend has checked a lot of the details are wrong, so she has corrected them as was told to do so on the phone. However under NCD they have entered 2, when actually she has 0. When she queried this they are saying it is an introductory rate.

Has anyone any experience of this company, and I'm pretty sure its not right to use NCD as an offer rate. They dont use a physical address on the letter either only a PO Box.

She has paid the deposit and has to return the forms with the amendments within 3 days. Any ideas chaps, we are getting the impression to run, but there is absolutely nothing I can find on the net about good or bad service.

First point of call in the morning is Highway LV for a quick chat.

Posted 26 Feb 2013, 21:08 #1 

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I'm not sure if this is a case, but you are right to be concerned. There are brokers out there who get good prices by falsifying details when they pass your information on to the insurer. You end up with a good price but no actual insurance. Insurance seems to be in place, but because it's based on false information it's not valid if it comes to a claim.

So, absolutely yes, talk to the insurer themselves. It's entirely possible it's a scam, I have heard of exactly this before.

Posted 26 Feb 2013, 22:52 #2 

I've no experience of Highway, but LV is reputable so as you have said the first contact is LV to confirm association (in good standing). A PO Box address for a company under supervision of the Financial Services Authority is a no-no and as Duncan said there should not be any variation from the absolute truth on any paperwork (electronic or otherwise). As they are claiming a connection with LV, that company will be most interested in anything you have to say.

Posted 26 Feb 2013, 23:47 #3 

I would personally avoid using Brokers, my Experience with them cost me £350 and 8 Points. :(

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Posted 27 Feb 2013, 00:13 #4 

Cheers guys, it doesn't look good but with the premium they've offered she hasn't really a lot of choice; its either investigate or not drive. If it was me I'd run but I'm in a better situation as I can get insurance easier. We're going to call this morning, well hopefully she will I've almost lost my voice :)

If its too good to be true it probably is!

Posted 27 Feb 2013, 08:28 #5 

Following a further reading of the OP, the 'hurry up' tactic of having to complete within three days stinks. Brokers receive a commission for new or renewal business and that commission is consolidated upon receipt of a deposit and all docs. If the policy is subsequently cancelled by the proposer then a charge for time on risk and admin is chargeable, as is any change to policy details. Also if an introductory NCD applies it is considered an inducement to buy and as such must be explicit and separate in product literature.

Posted 27 Feb 2013, 13:51 #6 

Well had a chat to the insurance company today who don't normally speak to the public but when I put forward my concerns they were happy to assist. My girlfriend IS covered, they have a policy running for her at present. Some of the details need updating as we have provided further details to the broker and the insurance chap advised me to give it a few days for the information to trickle though and get updated to the system (fair enough).

With regards to the NCD it created a bit of a stir and the chap had to go and speak to the underwriters. The broker had advised them she had 2 years which was false. We explained that this was an introductory offer according to the broker and he explained he couldn't advise on their offers, but we were in our right to write to the broker and advise them the NCD should be "0". So when I asked what would happen if she made a claim and she was asked to provide evidence of these two years NC recorded what would happen? He asked if I wanted him to contact the broker and get the broker to contact me to explain why there was 2 years, to which I replied there would be no point the broker has advised it is an introductory rate, but I'd be happy for him to ask the broker then for him to explain to me. Apparently that wasn't possible as he isn't allowed to make calls out to anyone but brokers. Then it clicked and he went to check with the underwriter at which on coming back he declared he would ring me back with details in a few moments when he has spoken to the broker. I agreed.

The broker then rings to speak to my girlfriend (not that impressed by the tone of his voice) who then asks if he would speak to me, which he does. I ask him to explain the NCD, and he explains the introductory offer. I pose the scenario of a claim as I did to the insurance company, and at that point he changes his story and states, "you need to adjust the two years to zero!". Premium is fixed so no change to amount quoted. Soooo my girlfriend edits the details and signs as told to do so. The broker re-iterates several times at various points that we are never to ring the insurance company as they don't deal with the public, we always need to ring them, and should of used the number of the letter they sent (from the dissolved company "Armitage Insurance Services LTD" (never asked him to explain that as he didn't seem to friendly at this point). I agreed (pleaded daft) and said I would. Call over.

BUT then...

The insurance chap rings me back as he promised (woop) and asks if the broker has made contact and I said yes and explained that we were to make the changes. He said that was good and to come back to them if there was any issues (broker said the company wouldn't speak to us) but he would be keeping an eye on the policy, but the current policy was current, running, and valid...


I can't help but feel a scam was very much attempted or still being attempted as the insurance company is keeping watch. They're also aware of the dissolved company status as I gave them the info, but under the FSA the LTD bit is missing implying its a sole trader rather than LTD. It could very well be a typo and its 100% legit but just cobbled together rather amateurishly. The LTD company was dissolved according to Companies House back in 2010 so someone else must of done a check? Well you'd hope! No one has mentioned the company that I can find on the net. I can find the directors names, I check their facebooks etc... privacy? What privacy...

It's not very reassuring knowing the insurance company is having to keep check on the policy. Not that I mind on that as I want my girlfriend to be covered! Hardly plain sailing though!

However she has valid (affordable) insurance so we're happy at the moment.

Posted 27 Feb 2013, 15:51 #7 

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What an interesting but worrying story. Makes you wonder who you can trust nowadays.
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Posted 27 Feb 2013, 16:26 #8 

No one it seems :(

We are just waiting for the proper Certificate of Insurance and Schedule, and get it confirmed before we relax. Hopefully she'll have a years NC this time next year, a years experience and can be considered by other insurers. I thought it was expensive when I started but its crippling now! No wonder so many don't bother with insurance!

Posted 27 Feb 2013, 16:40 #9 

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Well it sounds like there's valid insurance in place which is good.

The thing I'd heard of is called Ghost Broking, as described here: ... kers-nov11

There is a contact at the bottom of the page if you want to let them know, just in case. I'm surprised the insurer were so poor with the issue, as it's become a problem for them.

Posted 27 Feb 2013, 19:52 #10