THIS TRANSCRIPT IS ISSUED ON THE UNDERSTANDING THAT IT IS TAKEN FROM A LIVE PROGRAMME AS IT WAS BROADCAST. THE NATURE OF LIVE BROADCASTING MEANS THAT NEITHER THE BBC NOR THE PARTICIPANTS IN THE PROGRAMME CAN GUARANTEE THE ACCURACY OF THE INFORMATION PRINTED HERE.

Tape Transcript by JANE TEMPLE

MONEY BOX LIVE

Presenter: Paul Lewis

Guests: Angela Darling Terry Reed Malcolm Tarling

TRANSMISSION 29th OCT 2001 1500 - 1530 RADIO 4

ANNOUNCER : Now it's two minutes past three - time for MONEY BOX LIVE with Paul Lewis

LEWIS: Hello. Britain's insurance brokers warned last weekend that premiums could rise by up to 40% following what they called a woeful year for the insurance industry. But not everyone fears rising premiums- some of the investors with the insurance market Lloyds of London put out a newsletter which talked of the historic opportunity to make large profits as rates rose strongly after the terrorists attacks on America. Worldwide the cost of those attacks could rise to 50 billion pounds, and those costs will eventually filter through to our policies here. Back home the heavy rain and floods in the last week have just added to the problems. Personal injury claims are growing as the law makes it easier to sue, and public confidence was dented by the collapse this year of three insurance companies - the biggest Independent Insurance went bust in June leaving half a million people without cover on their homes and cars. More than 20,000 of them are still waiting for their claims to be dealt with. So what should we expect from insurance companies? How do they fix their premiums and how can we make sure they pay up when things go wrong? Whatever your question, you can call Money Box Live now on 08700 100 444 And with me today to answer your questions about insurance are Angela Darling from the General Insurance Standards Council which sets down the rules that anyone selling or providing insurance should follow, Terry Reed, an insurance broker, and an independent financial advisor, and Malcolm Tarling is from the insurance industry trade body - the Association of British Insurers. And the first question is from Marilyn in Bridgend. Marilyn, hello your question?

MARILYN: Oh hello yes - well about this independent one that collapsed - are there any steps that someone should take to ensure that you know your company doesn't - isn't one that collapse - and are there any organisations that the company should belong to and if there is, do they serve their members' interest or that of the public?

LEWIS: Well some very good questions there. I mean we have seen three insurance companies though go out of business this year Malcolm Tarling - that is unusual one has to say but what can you do to try and avoid it - avoid choosing a company that's going to happen to?

TARLING: Well you're absolutely right Paul - it is very unusual. Insurance companies are in the habit of going of business I have to say but that's obviously not much consolation to policy holders of the Independent. I think the important thing to remember is insurance companies in this country are regulated by the Financial Services Authority - the FSA as it's known set very tough, stringent solvency requirements - they're continuing looking at the solvency margins of insurers to make sure that at the end of the day they're going to have enough money to pay out claims that they are receiving. You talk about professional bodies, my own association - the Association of British Insurers has various codes of practice to ensure its members transact business diligently and fairly. In response to the question you raise Marilyn, we represent our members not members of the public, but there are other bodies around that represent the public.

LEWIS: So these companies that went out of business were your members- there's no guarantee that your members even are not going to go bust?

TARLING: There's absolutely no guarantee that ABI members are not going to be in that situation no, because we don't guarantee solvency, but there are very strict solvency requirements in the UK at the moment through the FSA.

LEWIS: And Angela Darling, the General Insurance Standards Council does set standards - can you do anything to satisfy people like Marilyn who want to know who the next one's going to be?

DARLING: Well I don't think we can answer about solvency, but certainly the majority of insurers within the United Kingdom now belong to the General Insurance Standards Council and they submit themselves to standards of service and conduct. Now one of the important things is that Independent for example were our members at the time that they went into liquidation, and we are still continuing to work with the liquidators who have agreed to ensure that they process claims and any outstanding policies according to our standards of practice. One of the things that we can't control unfortunately is the payments to customers, private customers in particular, and they are protected under the Policy Holders Protection Board, and I think that's the thing for consumers to remember that even in the event of these dreadful situations this year which are very unusual they will be paid for the majority of their claims.

LEWIS: Well for 90% but with considerable delays as we've seen in the case of Independent. Terry Reed as a broker, can you help people choose an insurance company that isn't going to fold?

REED: There's no guarantee of you know choosing a company that isn't going to fold but there are rating agencies for example - Standard and Poors will give different ratings to insurers and again whilst there's no guarantee will give a good pointer to the standing and security of that company that's held in the market.

LEWIS: I seem to recall Independent had a perfectly okay rating?

REED: They had a rating but the rating wasn't perhaps as high as triple A or double A which is set by Standard and Poors - you've also got Moodys as well but it is very difficult and it's a hard thing to follow, but as Angela's said the Policy Holders Protection Board does provide some protection but of course that's predominantly really for personal or compulsory insurances.

LEWIS: Indeed. And not generally for business - small businesses who I know have suffered terribly with the collapse of Independent. Well thanks for your call Marilyn and let's move on to Hesketh now in Weybridge who also has a question about Independent. Hesketh?

HESKETH: Yeah hi - I renewed a classic car policy - one of these limited mileage things, and it turned out to be with Independent. About a month or two after having paid the whole premium by credit card they went into liquidation, so I was no longer covered. I sought separate cover from another company which I've got, but I was wondering what to do? I've never actually got round to sorting out any kind of a refund and I was wondering whether since I paid by credit card whether there was some sort of protection there?

LEWIS: Well I think there might be, but there's also Malcolm Tarling, protection from the Policy Holders Protection Board for those premiums, for the unused portion isn't there?

TARLING: Well I'm afraid Paul it's not quite a s simple as that - in some circumstances

LEWIS: Why did I know you would say that?

TARLING: In some circumstances the Policy Holders Protection Board maybe able to make a refund on premiums - they're designed as Angela's mentioned to compensate people who've had claims outstanding when a company goes into liquidation. I think two points here - firstly check against the credit card company to see if there's any protection that they can provide and secondly, I think you may have to join the list of creditors to see if you can get any refund of premium back directly from the Independent, although there maybe the possibility that you'll be able to get some compensation from the Policy Holders Protection Board.

LEWIS: Terry Reed, is this not covered by the normal cover that people who buy with credit cards have against any problems?

REED: Well subject to whatever the minimum is - I believe you have to have minimum

LEWIS: It's �100 I think

REED: �100 - and in fact the classic car policy may have actually been lower than that - some of them are very competitive, but I certainly would suggest he puts in a claim against the credit card company on the basis that if you don't ask you don't get.

LEWIS: Yes, and also the Policy Holders Protection Board on a similar basis, but from what you're saying Malcolm perhaps without complete hope, and even if you do get it will only be 90% of the premiums. Thanks for your call Hesketh. Linda is now in Nottingham waiting to ask us her question Linda?

LINDA: Hello. I'm renting my house in Nottingham as I'm taking a job in another town and it's not practical to actually sell the house at the moment. I've got insurance for contents and building with my mortgage provider and obviously I won't mention who they are unless you ask me. The people who are renting the house are ex colleagues and so obviously I know who they are - what should I actually be asking or telling my current company?

LEWIS: Right well Terry Reed - insurance for contents - does it have to be different if you're renting the house out?

REED: Well there are two issues here on the fact that she said that they're insured with her building society of bank and one of the issues obviously is actually disclosing you're going to rent the house out even under the mortgage terms, but on the insurance side she does need to disclose to the insurers it is being rented out and the first port of call was to see what the existing insurers may restrict or put terms on because of having tenants in there such as they may shorten the type of cover, the width of cover available, but there are also specialist insurers who have "let property" insurance that have special extensions when you've got tenants.

LEWIS: But this could end up more expensive and indeed so could the mortgage because Linda does have to tell her lender?

REED: Some lenders - you may find the lenders may want to put up the interest rate by a small percentage, but there's a tremendous market out there of let properties, or let to buy and at the same time - buy to let or - well you actually let it to then buy another property, buy a second property on buy to let - depends which way around you're going.

LEWIS: Okay Linda well some useful advice - I think tell everybody including your lender and your insurer and just check that it does cover tenants in there but a couple of things for you to do I think there. Thanks for your call- John now in Retford is waiting to ask us his question - John?

JOHN: Ah yes good afternoon. My wife and I live in a small village in Nottinghamshire - about 35 miles from the centre of an earth tremor which measured 3.8 on a Richter scale and occurred yesterday afternoon. We felt the shock and severe vibration and the crockery rattled, my chair against the wall jolted. The local council are being helpful with advice and I have carried out extensive checks for cracks and movement on everywhere that's visible as they did advise. My question to you is shall I ask my insurance company to pay for an expert examination of all the parts that are not visible - such as the foundations and drains etc?

LEWIS: Well an interesting question and yes indeed there was an earthquake 3.8 on the Richter scale as you say 5 miles north of Melton Mowbry - I must say it was new to me living down here a bit further south than that. Malcolm Tarling it's question that people in that area might be concerned about. They've got insurance against this presumably but should - how do they get their home checked for safety?

TARLING: Well the good news is that most buildings and contents policies will cover damage caused by earthquake. I think John if you ask your insurance company if they're going to pay for somebody to come and assess the damage I think they're unlikely to do that. They will probably expect you to actually pay for the cost of any damage to start with and

LEWIS: The cost of assessment?

TARLING: Assessment - I'm sorry, not the cost of damage - the cost of assessment and then actually let them know and if there does look like there's the possibility of damage then obviously they'll take it on board from there. I think the good news is of course that from what you say there doesn't appear to have been any damage but it might be sensible for you to contact your insurance company, put them on warning and then contact a local surveyor to get them to come around and see if there is any damage beneath the surface.

LEWIS: But if John books a surveyor and the surveyor comes around and has a good look and says no it's absolutely fine here's a bill for 200 quid - who's going to pay that?

TARLING: I'm afraid John will have to pay - I don't think his insurer's going to pay unless there is a valid claim.

LEWIS: But if there is damage then the 200 quid or whatever will be paid by the insurance company? - bit of a risk on John's part?

TARLING: Well - again not quite as simple as that - depends on the policy - some insurers may expect you to pay that cost.

LEWIS: Okay, Terry Reed, is this normal advice - is this right?

REED: I agree with most of that. The main area to remember is get the insurer's agreement before you spend money otherwise if you don't get agreement they won't necessarily agree to pay.

LEWIS: Unless of course you've got water pouring in through the roof when you have to do it and then

REED: But if there's no sign of damage you basically - you could be spending money unnecessarily.

LEWIS: Angela?

DARLING: I think most insurers will handle claims fairly and promptly and I think the most important thing for policy holders to do is to look at their claims instructions and make sure that they have just reported this incident so that obviously they're not going to have to spend money to actually check whether there is damage that's not physically obvious, but I think having done so that will protect them for the future.

LEWIS: Well useful advice there John - a few things for you to do and let's hope that your house has not been damaged by that earthquake. Let's talk to Hilary now in Norwich. Hilary, you have a question?

HILARY: Good afternoon. About 5 years ago my house suffered from a subsidence problem. My insurance company paid out �30,000 to put it all right. I now find that no other insurance company will even give me a quotation for the property - why is this? And it could be a problem if I want to sell the house and somebody wants to insure with a different company - you know as part of their mortgage.

LEWIS: May I ask you Hilary - your own company who paid up now won't insure you?

HILARY: Oh no they still will insure me but I can't get a quotation from any other company. I've just confirmed in case I wanted to sell the house and somebody else wanted to insure it you see with a different company, they wouldn't be able to insure it?

LEWIS: Right Angela Darling is this right?

DARLING: I'm not sure whether there's a specific difficulty here. What I was going to suggest is that Hilary should perhaps call around and make some more enquiries because I am sure that there are specialists in the market that would offer this sort of cover. One of the very things that are important to customers is that they can understand what sort of service somebody can give them in giving them advice and it's very important that if they contact for example one our members that they explain whether they're just operating for one company or perhaps are independent or specialist in certain areas. And I think that's the thing for her to do is to get in touch with a specialist.

LEWIS: And Terry Reed, is it difficult to get a house insured once it's had a subsidence claim against it?

REED: Any new insurer's always going to be concerned that there has already been one claim and there are two sort of specialist schemes in the market place that will give quotations and cover for subsidence, but invariably that cost is higher than the normal market. And if the existing insurers are still inviting renewal and at standard terms - as long as it's not too out of line with the market, then if she's been looked after well in the claim you know perhaps she shouldn't want to change.

LEWIS: And Malcolm Tarling, at least Hilary isn't in a position that the existing insurer won't cover her, though there has been some fear of that in the past hasn't there, that a claim's been made and then the next year the insurer's said tough?

TARLING: I think it's extremely unlikely that that will happen and there have been cases in the past as you pointed out - these were not about one case but maybe two or three subsequent claims during the duration of the policy - where it's been difficult to get renewal terms. But basically the golden rule should be if she suffered a subsidence claim your first port of call on renewal should always be your existing insurer - after all they know the circumstances, the damage.

LEWIS: Okay, well I hope that's helpful to you Hilary. Let's move on to London now where Robert has got a question for us - Robert?

ROBERT: Hello good afternoon. I had a crack appear in the garage floor and I phoned my insurers who are the Abbey National and they sent down a company called Robbins Response who act for them and the guy just looked - took a quick glance at it and said I'm sorry it's been caused by a tree root and your policy doesn't cover tree roots because you don't have accidental damage. I have one of their top policies which is unlimited cover it says on the policy. He said however if you can prove it's heaving or subsidence you are indeed covered. There's no tree in the direct vicinity of the building so I badgered Abbey National after about a year to send down an independent expert down - they came down, they drilled a hole and did soil tests etc and I've got about a 8/10 page report back and they said there's no signs of a tree root - when I chased the insurance company again cos they never returned my calls at any occasion, they said they wouldn't be paying out because it was caused by the - what do they call it now? - the fills underneath the foundations being washed away by the excessive amounts of rain and things that we've had in the past?

LEWIS: So badly built? Angela Darling this is our great fear about insurers isn't it that you pay the premiums and then you come to make a claim and they won't pay up and then they have another reason for not paying up - what can poor old Robert do?

DARLING: Well I think you're right - it's about avoiding nasty surprises and I think there are two issues here: firstly Robert doesn't seem to be entirely clear about what the policy may have covered in the first instance and I think it's very important that when a policy is sold that customers are aware of the important areas of cover and any unusual or significant exclusions.

LEWIS: But if you see if it doesn't cover tree root I wouldn't know that not having accidental damage meant it doesn't cover a tree root - I hardly see a tree root as accidental damage?

DARLING: No, no - you're right and it is difficult for people without specialist knowledge to understand what they can expect to have paid under a policy. I think in this case there clearly seems to be an issue about whether or not the claim is covered. I mean we can't qualify without having seen the wording, but what I would say is that clearly the Abbey National should have an independent or rather an internal complaints handling facility and that Robert should progress this matter through that facility.

LEWIS: And how does he do that?

DARLING: What he should do is write to the complaints department - this should be set out in the Abbey National's details somewhere - there should be an agreed procedure which they should already have sent Robert - if they haven't he should ask for that. If he progresses through this route and he is not satisfied then Abbey National as a member of the General Insurance Standards belong to our dispute resolution facility and complaint from Robert would then be investigated independently.

LEWIS: It all sounds a bit of a long process though Terry Reed and meanwhile poor old Robert's wall's got a crack in it?

REED: It is a problem when you get a dispute and as Angela says if you are going round in circles then the important thing is to take up that disputes procedure promptly, but you need to make certain it's gone to the chief executive before the it will go on to the GISC

LEWIS: Right and Malcolm Tarling - defend the insurance industry in 30 seconds?

TARLING: Only 30 seconds? I think the thing is that subsidence claims or claims that could be attributed to subsidence and quite clearly we don't know - can be notoriously difficult to prove. I mean insurers do pay out millions of pounds a year in subsidence so it's not as if they're adverse to paying out for these types of claims. But it does seem to me that the caller's done the hard part and got the independent research and advice, and now he needs to establish what caused the damage and is the cause covered by the policy? In theory it should be quite straightforward.

LEWIS: Okay well Robert lots of advice but I'm sorry to say quite a lot for you still to do before you get that problem sorted out with your insurer. Let's move on to Tunbridge Wells now where Dorothy has what I hate to say is probably a very similar question - Dorothy?

DOROTHY: Yes it is a similar question and I was interested in the lady two calls back - I missed part of the call but she was worried about being able to change her insurance company because she'd had a subsidence claim. But I would hope her insurance company would pass - if she were to sell the house - would carry on the insurance to a third party - that's question one. The other is how do you know that these people called loss adjusters are truly independent? You can't see their report, the way in which they are paid is not made known to you and a lot of people feel very very uneasy about these so called independent loss adjusters?

LEWIS: Indeed a lot of people do Dorothy - let me put that to Malcolm Tarling. You make a claim and then your lot send in the shock troops to disprove it - the loss adjusters?

TARLING: Well loss adjusters - let's just get rid of one myth for a start - loss adjusters are not paid depending on how much they knock the claim down by - they're paid on a set amount agreed with the insurance company.

LEWIS: But they work for the company?

TARLING: They work for the company but they're there to act as the eyes and ears of the insurance company. If the company doesn't send down a loss adjuster it'll send down a claims inspector - the advantage of using loss adjusters is that very often they're local firms, they know the particular area, they know the particular circumstances of the claim and despite what some people may think loss adjusters can actually work the other way and advise you to claim for things that you weren't aware you could claim for.

LEWIS: But normally that's done by the other side - by loss assessors isn't it - hired by the claimant. Terry Reed do you advise your clients to have a loss assessor when they want to make a claim?

REED: Well actually loss adjusters will also work for the claimant these days as well as loss assessors�

LEWIS: They work for anyone who pays them I'm sure

REED: Well before you did have this problem, but as long as you're willing to pay the fee for the work they do whether it's a loss adjuster or a loss assessor they will both work independently for you and you will have those costs to pay. If it is a large claim particularly on our commercial clients we are tending to recommend appointment of independent assessors or loss adjusters to work for them to negotiate that.

LEWIS: It's just having a professional on your side isn't it that can argue against the loss adjuster or the claims manager from the insurance company?

REED: But I do agree with Malcolm that if a loss adjuster is appointed by an insurer they do act independently - they do pride themselves on being able to give an independent report but in fact a fair number of insurers are using their own in house claims assessors - investigators these days, so you won't always know initially until the person turns up.

LEWIS: Angela Darling what does your standards council say about these people?

DARLING: Well our members must be able to follow minimum claims standards which really talk about handling claims fairly and promptly and keeping customers advised of the progress and I think the important thing here is that when a loss adjuster is instructed that the insurer actually clearly tells the customer what they are doing, what to expect, and what they're there for, and then obviously the customer is aware of what will be the outcome of the loss adjuster's involvement, and at the end of the day they need to know what they can do if they remain unhappy or the claim hasn't progressed either promptly or to their satisfaction. And it's all back again to advising the customer of the progress, the process and what to do if there is a problem.

LEWIS: And nowadays with your council there should at least be standard procedures that everyone has to follow. Terry Reed briefly?

REED: I just want to come back to Margaret's first point about carrying on insurance with a new purchaser of the home. There is a problem because the new purchaser of the home may not be acceptable to the existing insurer such as occupational claims or convictions in there, so there's no guarantee that the existing insurers will take on board the new policy holder.

LEWIS: So that - that could be a problem. Dorothy thanks for your call - let's move on to Margaret now who's in Thrapstone in Northamptonshire. Margaret, your question?

MARGARET: Hello, my question relates to travel insurance and covers two aspects - the first is why is it if you wish to make a claim for one item when you're on holiday you have to list everything in your suitcase with a valuation plus receipts if possible when you're only claiming for one item?

LEWIS: Well indeed. I must say this has happened in my family that people have had to produce receipts for things they bought some time ago. Malcolm Tarling, why are you so difficult about travel insurance?

TARLING: Well some insurers may ask you to produce receipts if you bought an item recently or if it's of a large value. I find it unusual for every insurance company I'm certainly not aware of it - to expect you to list the items of everything in a suitcase backed up by receipts, cos in reality most people don't keep receipts forever.

MARGARET: Well I was only claiming for one lost item too?

TARLING: But I mean one of the problems with travel insurance is that it's very susceptible to fraud and I'm not in anyway suggesting that that's the case here, but I was only reading a case recently where somebody made a claim for a pair of shoes that alleged to been stolen that cost �250 - and a little bit of enquiry actually deciphered those shoes were worth more like about �30 so it does happen.

LEWIS: But Malcolm, you're always trotting out stories like this, but honest people like Margaret want to make a simple claim for something she's lost - she's got her insurance - why should she have to list every single item in her suitcase?

TARLING: Because insurers will want to check on the value of the items - the value of the items she's claiming for - if she provides them with as much information as she possibly can and I think it's probably is not going to be practical for her to produce receipts in every single case - and I don't think many insurers would expect that. There should be no problem in dealing with the claim - if she is unhappy then obviously there are complaints procedures.

MARGARET: Oh yes I went through those. I mean the second aspect of this is that because this happened when I was on the Cook Islands - there's only a part time police force and I didn't realise my jacket was missing till 8 o'clock at night when I went to pack and I was leaving at 6 o'clock the next morning. The police station was only open from 9 until 5, therefore I couldn't report it to the police - therefore I didn't have the relevant bit of paper.

LEWIS: Well that seems a difficult problem

MARGARET: And the insurance company refused to pay out. I never got a pay out.

LEWIS: Margaret - Margaret I'm going to get a quick word from Angela Darling - I'm sure she's going to say much what she said before, but this does sound a case and I mean from what Margaret says she's been through complaints and it hasn't worked?

DARLING: Well I think insurers must deal with complainants fairly and squarely and clearly a complaint can be progressed either through ourselves or the insurance ombudsman. I think the important thing is that clear instructions are given to policy holders about how to make a claim so that before they even travel if they are subject to certain requirements such as reporting to the police then they can be aware of that, and if there are any unusual obligations then really again their attention should be drawn to that.

LEWIS: It doesn't help if you're in a place where there isn't a police force on duty?

DARLING: No and I think in that instance if she couldn't report it then the insurer should understand that - and not unfairly impose a condition.

LEWIS: You mentioned the ombudsman and I think I should just say that apart from the General Insurance Standards Council which is an industry body there is now the Financial Ombudsman Service that you can complain to independently and get redress if you think that the other procedures haven't worked. Let's move on now to Ken who's ringing from Blackburn with a rather different question - Ken?

KEN: Hello. My problem is that I' m now 70 and foolishly some years ago I took out life membership of the British Cycling Federation which guaranteed me all of the benefits due to all of their members and now I find that they've decided to cut off the personal accident insurance at 70. Well I'm still hale and hearty and quite capable of beating many young riders - and I find that I feel that's a poor do - it's an agist situation and I know a lot of elderly members are very annoyed about it. We've paid our money and a gold life membership card which entitles us full benefits to the British Cycling Federation and now they've decided that we don't qualify for personal accident insurance.

LEWIS: Ken I'm going to put this straight to Terry Reed - it certainly sounds like discrimination to me - Terry?

REED: Ken, as an ex-cyclist both road racing and time trialist I understand your problem. It's not really sort of discriminating against you - with a personal accident policy most of them do have a cut off period of aged 70 and you've done well to survive obviously without having claims and you ride your bike well. There maybe the odd insurer that will give you personal accident cover up to perhaps aged 75 - you're actually saying insurance racing - are you still racing?

KEN: Yes, mostly for coaching purposes with young riders.

REED: Okay

LEWIS: But- but briefly Terry, is there somewhere, I mean not just Ken but anyone aged 70 or more can go for this insurance? - and if not why not and will it be covered by the European directive on age discrimination which is coming in in a few years time?

REED: Well I can't see it being age discrimination on the fact that personal - as you get older the chances of personal accident, even just crossing the road will be more likely

LEWIS: Is there a specialist insurer he might go to?

REED: Not really - other than going up to aged 75 with some of the insurers or going for life cover - that can run for life.

LEWIS: Terry Reed thanks. It looks as we may have to have a court case about this in future years. Anyway thank you for your call Ken. Your is the last we have time for. My thanks to Terry Reed from the insurance broker, Angela Darling from the General Insurance Standards Council, and Malcolm Tarling from the ABI. There are more details of anything raised in the programme - you can ring the action line number on 0800 044 044 Calls are free on that number and I've just been told we have got time in fact to take one more call quickly - so Edward is going to give us a quick question from Upminster:

EDWARD: Hello. I've got a car insurance that's up for renewal in the next 10 days and the company I'm currently with are offering me a 12 month policy, but unfortunately I've got get to get rid of the vehicle in 2 months time and I wondered should I go with them and claim a refund after the 2 months which is what they want me to do, or hunt around for a different company?

LEWIS: Malcolm?

TARLING: The answer is yes you can - you can go with this particular company. The only thing I would say is that if you look for a refund in a couple of months time you may not get a pro rata refund. There are specialist companies out there that can provide motor insurance on a month by month basis but they maybe somewhat expensive as well.

LEWIS: Terry briefly?

REED: If the current insurers will take monthly installments, pay monthly installments. If you pay yearly and then have a claim you may find you won't get the full refund.

LEWIS: Thanks very much. I've already thanked my guests so I'll just remind you of that number - the action line number: 0800 044 044 Calls are free - 0800 044 044 You can of course visit our website: www.bbc.co.uk/moneybox. Our e-mail address: [email protected]. I'm back on Saturday with MONEY BOX And Vincent Duggleby's here next Monday at three o'clock.

BACK ANNO: That was Paul Lewis and the producer was Penny Haslam.