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WARNING** Quinn Insurance goes into administration

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WARNING** Quinn Insurance goes into administration

Post  Atthelimit on Thu Apr 01, 2010 1:57 pm

Hi all, its the insurance man here.

Warning! Quinn Insurance UK goes into administration.

The FSA regulator has placed Quinn insurance into prelimanary administration as it has a UK trading position which falls below the UK regulators financial sovency margin.

This means that Quinn Insurance cannot accept any new business as of the 31st March 2010.

Existing policy holders are protected by the FSA regulator and policies will continue in force until their renewal date when cover will have to be arranged with new insurers. The position regarding mid term changes to policies is cloudy at the moment and it is most changes will be accomodated although in the case of extreme changes of car, say a Fiesta to a Ferrari these might not be accepted. But Mondeo to Passat and so on should be. On commercial insurance policies, liability, commercial combined, PI etc normal changes should not be a problem.

Most Important, claims will be paid and honoured in the normal way under all contracts.

It is quite some time since an insurer went bust and in fact the regulator has stepped in early here to " protect Quinns from excesive losses" on its UK account. They are an Irish company and the Irish regulator has allowed them to continue its operations over there. Quinns specialised in young driver insurance and commercial vehicles and so it is probably unlikely that too many Lotus drivers are effected by this, however it is possible that if you have sons or daughters they could be as they were very prominent on the Compare the Confused Mearkat.com sites.

To Sum Up
Don't panic, you need do nothing now. Quinn should write to you at renewal but keep and eye on your renewal date just in case you don't get a letter. Any claims you make will be paid in full. Quinns were cheap, too cheap hence their problem now, be prepared to budget for increased insurance costs this coming renewal.

Kim
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Re: WARNING** Quinn Insurance goes into administration

Post  Shuffty on Thu Apr 01, 2010 9:14 pm

My son's car is insured with them and I have an unpaid claim with them (my Son's fault and I paid for the repair upfront) do you think they will still pay out?
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Re: WARNING** Quinn Insurance goes into administration

Post  Atthelimit on Fri Apr 02, 2010 12:06 pm

Hi Shufty,

The word is that all claims will be paid, can't quite understand why you paid claim up front?
The whole thing about insurance these days is that customers are protected against something like this so you won't have a problem.

But if you do need any help you can send me a pm or ring me at work.

0116 2333559
Abbot Insurance Brokers.
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Re: WARNING** Quinn Insurance goes into administration

Post  Shuffty on Sat Apr 03, 2010 4:40 am

Thanks. The reason I paid up front is I did not want to claim off the insurance and did initially agree with the woman who's fence my son damaged that we would pay to have it repaired and had a builder go round the next day but when we came to a date for the builder to repair she told us that she had gone through her home insurance (because all along she wanted the whole fence replaced not just the damage) and of course they claimed of Quinn (3 months later). The moral of the story is don't let your son drive it's far to expensive.
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Re: WARNING** Quinn Insurance goes into administration

Post  A7ESK on Sat Apr 03, 2010 9:51 am

Hi all with that in mind which is the best insurance company for a L plate driver to go with as my nephew is finding it very differ-cult in finding one.

Eddie
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Re: WARNING** Quinn Insurance goes into administration

Post  Ian on Sat Apr 03, 2010 12:54 pm

We had this situation when Matthew was learning! It's true that insurance for young males is a rip-off compared to females. I have to say that the best quote then was from Quinn Direct, the other advantage of them at that time was that he could be covered as a named driver and they didn't need to know who was the main driver (with all the press talk about 'fronting'- we asked!). However he's now with Admiral (same as CJ I believe?) who gave the best price insured in his own name, not as a 'named driver, so accruing NCD. Try them.
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Re: WARNING** Quinn Insurance goes into administration

Post  TimS on Tue Apr 06, 2010 1:19 pm

I'm sure Kim will post a good reply when he see's this, although I believe Aviva are supposed to be OK with young drivers.

Tim.
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Re: WARNING** Quinn Insurance goes into administration

Post  Atthelimit on Tue Apr 06, 2010 4:17 pm

Young driver/L plate insurance.

This is a difficult question to answer, because there is no easy answer.

Young drivers have more accidents than mature and experienced drivers, girls have less than boys. The accidents that boys have generally cost more because they are often at higher speeds. That is the reason I suspect one person wrote “boys get ripped off”.

I don’t agree because the fact is the young males cost insurance companies a lot more than young girls. I know we are generalising here and there are some safe young drivers who don’t have accidents. However, insurance companies don’t have a crystal ball to be able to see who the good and bad ones are, if they did the good ones would get cheap policies and the bad ones would not get insurance at any price! But just to prove a point in fatal accidents involving young drivers (under 25s) at fault it is I am afraid to say 9 out of 10 times young males at the wheel.

Insurance is a collective piggy bank, we all pay in and the ones who claim get paid out of that central piggy bank. We all subsidise those that claim.

So back to the answer.

If you are female then I can suggest you try Diamond, they seem particularly keen at the moment.

For males it is more difficult especially as Quinns have gone, it is too early to say who if any insurer is going to step into their shoes. But worth a try are (in no particular order) Aviva, Direct Line, Endsleigh (student specialists) and Admiral. NFU might be good if you already have some business with them and also the CO-OP.

Fronting”
As someone mentioned there has been a lot in the press about fronting, this is the practice of insuring the car declaring that the parent will be the main user of the car rather than the young driver. The reason people do this is to get lower premiums but please don’t if you get found out insurers will deny a claim leaving you to foot the bill. It’s a false economy.

There are however other ways to get lower premiums, pass plus is worth doing, restricted mileage, low group car all help but its still going to be a lot of money. Don’t do any modifications. Aftermarket alloy wheels, lowering kits, big banging stereo and speakers, tinted windows, nothing. They won’t make it go any faster but to an insurance company they scream “boy racer” avoid or charge loads more.

There is one other solution that is messy but effective and legal.

Assuming that mum or dad have a car, a “normal car” that has maximum bonus on it, it is insured in Mr Smiths name. They pay say around £230 per year.

Young Master Smith saves up all his money and buys a Nova/Fiesta/Punto 1.2, has just passed his test and gets quotes for £1700 or more. A possible solution is this is………...

The Vauxhall Corsa log book has to go into Mr Smith seniors name and he becomes the owner and keeper of the Corsa, putting son already in bad mood deep into depression. Mr Smith contacts normal car insurance company and explains he wants to use that bonus elsewhere, gets a quote of an additional premium on his normal car until the renewal of the policy or shops around for best price policy for mature driver insuring a “second “ car just for him and his wife to drive. Assuming Mr and Mrs Smith have no accidents then they should get a “maximum introductory bonus” this will mean that they should end up paying a similar price to what they have now but the bonus will not be protected, I would think the premium might increase to £280/300.

Mr Smith Senior now gets a quote to insure the Corsa in his name but with the young driver declared as the MAIN USER which is true. The benefit is that this quote is obtained using the maximum bonus from the previous policy, effectively insuring the 17/18 yr old with maximum bonus. Make sure this bonus is protected. The result should be that the Corsa quote is around half what it was. So you add this to the additional premium for the “normal car” and you have the sum that the bank of mum and dad have to pay or son if you are lucky.

This is legal because the young driver is declared as the main user, as long as you answer all the questions correctly such as will he go to work in it, mileage, occupation etc you are fine. The policy is rated on all the correct details but with the maximum bonus discount taken off. Simples!

What are the draw backs?
1) It’s messy and 1st time around quite a protracted arrangement.

2) Son now has your no claims bonus at his mercy, but if you are convinced that your son is that elusive angel who won’t do anything daft then you won’t have anything to worry about. But should the worst happen as long as you protected the bonus the premiums should not shoot up at next renewal and you will still have the maximum bonus intact. (You normally get two lives before bonus gets stepped back)

3) Sons car now in your name meaning that at some point when you change the car back into his name (if you do) it will have another owner on the log book, but on a positive note when your son comes to sell it he can say “the car used to be my dads” and for me buying a car that might actually be attractive.

4) Son is not earning bonus in own name.

5) You end up with two policies due at the same time.

6) Your “normal” car insurance is slightly more expensive and bonus is not protected as perhaps it once was. At your renewal remember to get a quote with max genuine bonus and the max intro bonus to see what the difference is just in case son is paying the difference.

7) At some point things will have to change. There are various milestones in insurance and at some point your son/daughter will need to stand on their own two feet and at some point this will be the best thing for them to do and so gain their own no claims bonus. The tipping point is when the cost becomes acceptable. There are various milestones in insurance that effect the premiums for young drivers. A Full licence for 12 months, age bands, these go 17, 18-21, 21-24, 25 and over. I would say that from experience 2/3 years on this basis is about the right time to swap over, when a young driver has held a full licence for 2 years without accident a lot of insurers will give an introductory discount of some kind and their age loading will be less. But try at each renewal until you think the time is right.



Told you it was messy!
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Re: WARNING** Quinn Insurance goes into administration

Post  TimS on Wed Apr 07, 2010 12:12 pm

Good reply LDC Insurance GURU !
I knew you would sort it, worth all our members Mum's & Dad's printing this off for dinner time discussion with young Zak or Chantel when they get to 17.

Cheers, Tim.
(17 a long time ago - I was then driving a purple Imp with huge rally fog lamps...I thought it was cool!)
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Re: WARNING** Quinn Insurance goes into administration

Post  A7ESK on Wed Apr 07, 2010 8:58 pm

TimS wrote:Good reply LDC Insurance GURU !
I knew you would sort it, worth all our members Mum's & Dad's printing this off for dinner time discussion with young Zak or Chantel when they get to 17.

Cheers, Tim.
(17 a long time ago - I was then driving a purple Imp with huge rally fog lamps...I thought it was cool!)

Thanks Kim i have passed the info on .
Cheers Eddie. Sad
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