[Not a Diesel!!!]

All,

Coming upto 4 years with my BMW. First year was approved used warranty which I then extended on continuous monthly basis to stop increases.

My Warranty booklet issued at the time said that payments would remain the same as long as I paid it. Newer T&C booklet gives them ability to change.

So it has stayed pretty much the same barring a slight increase with the Insurance premium tax.

Then this year I get the letter:

"As a vehicle increases in age, of course the likelihood of facing unexpected repair costs also increase. I mist therefore draw your attention to the following important notice. "

So with a sharp intake of breath I read the new price..... up by £1.30 ( 3.5%) a month.

Clearly the amount is irrelevant but it does make me question if my payments are fixed or if they are variable based on increasing mileage/age.

[Thermobaric]

Yeah. I got one too. I was a bit puzzled as it wasn't to do with the insurance tax and my mileage hasn't crossed a significant threshold to warrant an increase.

So it's pretty much because they feel like it. I wonder if you question it, they will waive it.

It happens with quite a lot of stuff. Companies figure most people will just accept it as it's such a minor increase. It all adds up though with thousands of customers. I found it pretty cheeky really.

[Dann]

Over the last year I've had three of those letters.
First couple were the tax ones and then an overall price increase.
Tbh I don't pay attention any more. The money just goes from my account like my phone bill

[Kerr]

I wonder if it's raising the prices in-line with inflation?

Even if you sign a 24 month mobile phone contract they are allowed to up your monthly bill in-line to the RPI.

[Thermobaric]

If that is the case, they should state that. Otherwise it is plain misleading.

30 day rolling mobile contract for me. No inflation price increases.

[Ao1]

Interesting. I thought monthly payments locked the price whilst you continued to pay monthly. Now I'm a bit torn. My ACU runs out in January. Comprehensive with £250 excess and emergency = £825.76 per year or £84.38 a month. (M3, 13 plate 21K).

£83.38 x 12 = £1,000.56 so a 19% increase over an annual renewal of £825. The only long term benefit in paying the additional 19% would be if the price was locked permanently and the annual renewal went up each year.

I've heard they are getting a lot more strict on what they pay out for as well. Decisions, decisions.

[Dann]

I'm hoping on getting my water pump and turbos done next year.
Following that I'll be cancelling mine as then my car will have had all the major issues sorted

[RajB]

It used to be that the monthly payments were fixed and it was a way of ensuring the lower price remained for the period of warranty cover. They have changed the system completely so now increase the price accordingly. However they don't seem to do the major increases you see with the yearly warranty payment so at the present time it seems ok with just minor £1 ish increases.

If it goes up majorly then I'd bin it and just do repairs myself or use a decent independent. The problem I tend to suffer is that if it breaks I tend to wish to upgrade it rather than replace like for like.

[Not a Diesel!!!]

Just checked wording online.

Page 23 section 10.

We reserve the right to vary your
monthly premium at any time by
providing you 30 days notice in writing
to the last address you provided us
with.

https://www.allianz-assistance.co.uk...nty%200616.pdf

I also looked at my hard copy issued when I tool out monthly payment in Jan 2014. It said the same with print date for booklet 11/13.

So looks like its not been fixed for a while yet increases are minor once you are in the scheme.

[Not a Diesel!!!]

Originally Posted by Ao1

Interesting. I thought monthly payments locked the price whilst you continued to pay monthly. Now I'm a bit torn. My ACU runs out in January. Comprehensive with £250 excess and emergency = £825.76 per year or £84.38 a month. (M3, 13 plate 21K).

£83.38 x 12 = £1,000.56 so a 19% increase over an annual renewal of £825. The only long term benefit in paying the additional 19% would be if the price was locked permanently and the annual renewal went up each year.

I've heard they are getting a lot more strict on what they pay out for as well. Decisions, decisions.

One thing is for sure if you fall out of it & go back its much more. Been looking at M3's similar age & mileage & typing details in to the Quote screen and getting £140. Sop seems much cheaper to extend AUC warranty.

[Mani59]

I think I mentioned on a topic earlier this year (or may be last year) that the monthly payments will no longer be fixed / locked.