07 Oct, 2009

Car insurance in Spain – Linea Directa taking the piss?

Posted by: Justin Parks In: Business on the Web| Featured

Currently: Home » Business on the Web » Car insurance in Spain – Linea Directa taking the piss?

Car insurance Spain

I sometimes think I’m a bit to damn nice.

I have had my car insurance with Linea Directa, Direct Line Insurance in the UK, here in Spain now for 3 or 4 years and its time to renew the policy. Obviously times are tight so I wanted the best deal possible with no frills and additional expenses but covering the essentials for breakdown recovery and fire and theft and to make me legal to drive.

The best deal Linea Directa could give me was around 450 Euros and based on the ZERO claims I had made in the last year (and only if I paid that in one payment, not in a monthly payment schedule), but this quote only occurred after I asked about removing all the extra cover I previously had, even though I explained that I did not want any of this from the outset.

The guy from the call centre said he would call me back for my decision.

Getting another Car Insurance Quote

The thing is, something was bugging me, I just felt like I should not be paying this premium at my age (31 years) and in line with the car I drive, a 3 door Peugeot 206, 1.9 Diesel made in 2001.

I asked a friend what he was paying and he referred me to a local Spanish company called BMI, who sat me down, took my details and came straight back with a quote covering all the same features as Linea Directa for 260 Euros. (Please forgive me on the numbers here, they are as accurate as I can make them, I have nothing on paper and am running on memory).

I was a little annoyed upon hearing this, not with BMI, but with Linea Directa, who I had given my custom to for the last few years and who I suddenly felt had been ripping me off.

Not being one to jump the gun and I decided to wait for them to call me back. Sure enough the same guy (I will not mention his name, he’s just doing his job) called me back and asked if I wanted to extend my 450 Euros policy for the coming year. I proceeded to tell him that I had another quote for 260 Euros covering all the same features and asked if he could match that.

He told me he would have to defer to his supervisor.

Getting a new and revised quote

Sure enough, and surprisingly enough he called back not 5 minutes later. “Good News! I have spoke to my supervisor and we can match that quote because of your long term custom and zero claims in the last year Mr. Parks”.

Now correct me if I’m wrong but why the hell was I not offered this much more competitive quote from the outset?

I asked him to call me later so I could consider my decision.

I am really annoyed about this and feel a little like I have been taken for a ride. I’m not going to slate Linea Diretas service, there has been no problems, their staff have been excellent, polite and spoke in English (even though I would have been happy to deal in Spanish) but the drop in price was, in my eyes, extraordinary! Thats 450 euros to 250 euros in the space of 5 minutes.

Maybe Linea Directa do value my custom, but why then, do they make me jump though so many hoops to get the best deal. Why not be straight, never mind the fact I feel now like they have taken me for a sucker the last few years at the previous premium, though I realise this is just a feeling, and then I was under 30 and the conditions have changed,but none the less, it leaves a bad taste in my mouth.

Regardless, its a nice reminder to shop around whatever you do.

So do I now say “thanks but no thanks” to Linea Directa. If you had been open, honest and transparent with me from the outset and valued my custom, then this quote would have been offered immediately, or do I just accept this as “normal business” and if you don’t ask you don’t get kind of practice.

Or do I change my insurance company and give the custom to the local company who offered me the best deal from the start….

What would you do?

Tags: BMI Insurance, car insurance premium, car insurance Spain, Direct Line Insurance, Linea Directa

Dawn Baird

I'd go with BMI. Companies like this, insurance and other financial services providers have had it good for far too long. They simply will not contact you for anything at all, except if you miss a payment.

If you have a claim or an issue with the service you can forget it.

This year, I've waited an entire 11 months to have a household claim resolved, following a problem caused by the insurance company themselves.

And, I was without wheels a few years ago, when unfortunately one car died and another was hit within the space of a few days. We waited 6 months for an indemnity payment. I'd LOVE to see them waiting 6 months for any direct debit payment.

Seems they can break the contract all over the place, including FSA rules. But, we cannot have any leeway now that things are tough for us all.

Competition is what they need. Lying, thieving morons.

Justin Parks

Never a truer word Dawn. The whole thing drives me round the bend when it comes to insurance policies (mobile phone contracts are not far behind them). Like banks, the whole system seems to be weighed heavily towards the institution rather than the client and they take advantage of this with incredible efficiency without realising the effect it has on everyone.

oh for a perfect world.

johnmckenzie

Here's a thought Justin. If they are prepared to screw a loyal long term client on renewal what will they do if you ever claim? Does this sound like a company built on good service ethics? I doubt it!

Justin Parks

My thoughts exactly John.

After reading the other replies and comments here the bad far outways the good and the whole thing smacks of "sell them quick, sell high, sell hard" with little or no thought for the loyal client or the long term view.

Hence the reason I decided to go with BMI offer and was happy to do so.

nicchick

Hi Justin,

Sorry I havent replied sooner. Busy at the Mother, Baby and Toddler show in Estepona which I am sure, as a father to be, you will be popping into tomorrow ;)

Look at it this way. If your insurance company, with whom you have a longstanding relationship is prepared to match an other offer, in order to keep your good custom, then you should take it.

As for being marked down as a "cheapo quote" and therefore worried that you wont get as good as service. I sincerely doubt that. I cant imagine them telling the tow trunk "oh dont rush for that one, he's a cheapo, 59 mins will be fine". Its not going to happen!

Also bear in mind, and perhaps I am wrong in this but BMI is an insurance BROKER and although they are there to find you the best deal around, they are not responsible for the actual policy. With Linea Directa, your relationship is directly with the insurance company.

Anyway, I am sure you have made your decision by now.

Hope to see you tomorrow. Come say hello. Stand 69 next to Kidz Kingdom play area.

Graham Hunt

I think that as Nic said it is normal business practice unfortunately normal business practice in Spain (Ducks to avoid fallout) seems to be rip the consumer off as much as possible for as long as possible.
I agree with you though Justin if they are going to offer it as soon as you prove the offer from the other company they should give you their best price (Or equal the other one if they could do it better)

On the general point of insurance in Spain i feel a blog post coming on with recent experience from some of my clients an that is bitter bitter experience with many companies

Justin Parks

The process of claiming and the service they offer is a good point, and not one I want to experience really! But is it really worth an extra 300 euros or more?

The problem is that they agreed to drop the price though and not so much the service that comes with it though it does now raise the question, will their service be as good on this new price or will they look at it and say "oh that's a cheap one, don't panic there we will sort it when we can". Difficult to say of course but after reading these other comments and of course asking Im still not to content with the whole situation.

I know there will be negative comments about every company, especially in the insurance business, as people can exaggerate things or not have grasped the reasons for delayed payments if they don't understand their cover and policies completely and depending on the other parties involved but it hasn't all been smooth sailing and wont be with any insurance company though I appreciate the positivity in your comment nicchick.

I am surprised though that you don't find this practice even a little of putting. Sure I appreciate every company has to make money and the aim of course is profit but doesn't this seem just a little bit underhand to you? Can you confidently put your trust in them now to deal with you fairly? I'm struggling with this issue more than any other or are they just wanting to get you in and paid then forget about you.

nicchick

Firstly I have to ask, have you ever made a claim with Linea Directa? If so, then you will know that they are absolutely fabulous at dealing with the claim and there are no delaying tactics from them whatsoever in getting it all processed and approved.

Touching on your last post of when something is free, is it really free. Is a good deal really a good deal? If you KNOW that Linea Directa have given you good SERVICE even though the deal was given on a "dont ask dont get" basis, then that is surely one of the most important criteria when choosing a car insurance, along with price - you decide what is most important to you.

If they have offered you the same deal I say stick with what you know.

And also, while I have my moment on the soap box, just to say that I dont think it is particularly bad of Linea Directa to not offer you this from the outset. I think that is pretty much normal business practice.

Dawn Baird

Under FSA Rules (I used to teach 'em) financial insurance companies are obliged to send you a quote, asking only if you'd like them to shop around for you.
If, as they hope, you can't be bothered, they will simply renew your premium with the original insurer/company.
You have to bludgeon them with sarcasm and quote the rules, to get them to understand what their obligations to you are (printed in point size invisible on the back of their unintelligible letters) and that your wish to save money on extortionate premiums is as a great as theirs when it comes to their own policies.

Craig Edmonds

LOL.

Justy, here is an idea......If your insurance has not yet lapsed with linea directa, go and smack the dirty turtle into a lampost and see how Linea Directa handle things.

If they handle it well then stay with them because well, you will be paying what you would be paying BMI anyway.

The other option is to join BMI and wrap the dirty turtle round a lampost and see how they handle it. If BMI handle it badly, move back to Linea Directa.

Anita1234

Nice shopping around! I would say stay with them, but know that next year you can ask for another reduction. This is just normal practice - if you don't ask in life you don't get - so always make a point to ask.

Makes me a little peeved though, because the best they could do for me this year was €440 but with €300 excess - I stayed with my company.

BTW, it may be worth phoning a 3rd company and asking for that price but fully comp.

I'm with Abbeygate - and very happy...

Justin Parks

Thats a fact Anita. If you dont ask you dont get, but though I agree that this is required and even accepted as normal practice I still dont see why it should be, especially now as the impression I am left with is not positive.

Had the difference in prices been much less I guess I would not really have worried but a 50% drop in the price and then to have them match it in less than 5 minutes didn't actually make me smile it annoyed me because I couldn't understand why I had to go to this extent to get the best price.

Graham Hunt

Linea Directa in Spain is not the same as Direct Line. I tell you this from bitter experience not from hearsay.
This year on the renewal on my wife's car, a 7 seater Mercedes Vito they wanted to up the price from 845 to 1050 Euros. No crashes previous year either. I phoned to enquire and the usual crap. I deal with them in Spanish too and often swear at them in Spanish of course.
They justified it by saying a Vito is a van for commercial purposes. Two things wrong there. 1) It is not, 2) It is not. And just to emphasise, if it is a van now it was a van last year too, even though it isn't.
Anyway next day i am in Bancaja talking over restructuring my overdraft ie getting one (Ho Ho Ho) and I mention this to them. They work with three insurance companies and they got quotes for me immediately. The best was 425. Now that is a slight difference.
So anyway to cut a rather long story short I phoned up Direct Line and told them asking them to quote again and they came back to me with 870. I asked if they had heard me on my quote from the other company and they said of course but they offer a better service! (Go figure)

As for not being the same company here is my theory. People in the Uk know Linea Directa is the cheapest. Linea Directa know this so when a Brit phones up in Spain (Or an English name is on the database) they are put through to the English speaking dept. This dept has very different prices to the Spanish part of Linea Directa because they know Brits who do not speak Spanish will not shop around.

The non conspiracy theory states that BMI will go out of business because they cannot afford to operate at those costs. There are roughly three to four times as many crashes in Spain than in the Uk so obviously prices are more expensive.

Justin Parks

The question of service is always an issue, especially when it comes to cars, accidents and all the fallout from it but after reading these comments I'm more and more convinced that they are seriously over charging for their services, no matter how good they say they are.

Mike CJ

EXACTLY the same happened to me last year with my renewal, and as a result Linea Directa lost policies for three cars and a motorbike.

They really need to switch on to offering decent pricing all the time if they don't want their customer base to gradually erode.

Justin Parks

I have this horrible impression from them at the moment that they put more value in gaining new clients (especially with the attractive incentives they are offering for new business at the moment) and not any real value on their current clients...really is leaving a bad impression.

techandlife

A great example of why it's important to shop around. I'd go for BMI. Linea Direct need to be more competitive from the word go not just when you ask them to match a quote. And when the time comes next year, shop around again and if someone can beat BMI on the same terms, go for them.

Angie Haggstrom

While I'd expect there to be some differences in the price, that is a massive, massive jump. What is so special about Linea Directa that would warrant such a high cost? Sorry, but unless it's something serious, I have and maintain an anti-screw-me-over policy. I don't do it to my clients because I have this thing called morals, values, and respect for my fellow man. Business is business, after all ;)

Justin Parks

They do offer a good service, but only if its needed and of course I really don't want their service as this will mean I have had an accident! I have no problems with the company as such its the means by which this whole episode has panned out and how they have treated me.

It simply stinks of something a little underhand when they can go from such a high premium to over 50% less in the space of 5 minutes that leaves a bad taste in my mouth, especially after being a client for so long.

Craig Edmonds

vote with your feet!

switch to BMI but read the small print first of course.

Justin Parks

Reading small print now. :P

Car insurance in Spain – Linea Directa taking the piss?

Getting another Car Insurance Quote

Getting a new and revised quote

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