Tesco wants 1400 for changing Spouse -> Son details.

I guess it epends who's fault it was that he was identified as spouse in the firstplace. If you think it was tesco's fault maybe they still have the tapes of the conversation when the policy was set up.

The next question will be, who is the main driver of the vehicle.

Online applications are your responsibility to get right.

Tesco are correct in what they are asking. As it stands now, you either pay or they start the process of getting the money from you. You could try and plead hardship but that may not work.

If you refuse to pay, Tesco may cancel the insurance and then that becomes a possible issue for you in future insurance applications as you will have to declare that the insurer cancelled the insurance due to non-disclosure of a material fact. That could have a significant impact on your future premiums for life as that question is usually asked "have you ever had insurance refused, terminated etc etc"

I’ve tried to argue over the phone that if accident would happen than Tesco would simply cancel the policy any way

Not necessarily. It would depend on whether it was classed as inadvertent non-disclosure or intentional. Problem for you here is that whilst it is clearly incorrect and could be inadvertent, it could also have been done intentionally to reduce the premium. Its very much a judgement call.

kanaps wrote: »

Hello everybody!

I had insurance with Tesco for 6 month and I’ve paid 700 for myself and my Son but recently I found out that he’s stated in insurance as my Spouse. After amending the details Tesco want me to charge 1400 for changing and when I’ve decided to take him off the insurance Tesco still want 700 for 6 month which he’s been insured for. I’ve tried to argue over the phone that if accident would happen than Tesco would simply cancel the policy any way and I do not want to pay for something they would cancel but it didn’t work as they insisted that they would just charge same premium at the time of accident and changing the details.

Any suggestions on what should I do?

Firstly you have learned a lesson in that you should always check your insurance documents when you receive them. A previous insurer made a mistake because its number plate database was wrong and my premium was too low. I noticed this on receipt of the policy and got a full refund and insured my vehicle elsewhere.

I'm not sure what you are saying about it being an online application, you are saying you had to call and may have had to give the details again, in which case it could have been their fault.

I think they are talking nonsense in any case, because if you made a claim for £20k of damage they would simply look at the driver and tell you you were not insured - don't believe it that they would let you get away with just paying the extra premium: if that were possible there would no reason for anyone to properly declare their insurance details.

The fact is, you have had six months of insurance that would not have covered your son in the event of an accident. There is no way they can sue you for the extra premium, simply because they have not suffered any loss - in fact they have gained the extra £50 you paid, which would not have been valid in the event of an accident.

Anyway, best to avoid this entirely, just call them up and say you want to cancel the insurance, no need to give a reason.

http://www.tescofinance.com/personal/finance/insurance/carins/standard/breakdown-policy-doc.html

This policy may be cancelled:

• By you at any time by providing 7 days' notice in writing and surrendering the certificate. In such event, provided no claims have been made during the Policy year, we will issue a refund which will be calculated on a pro-rata basis, less a cancellation charge of 25%. This is not applicable to cover under Section E.

Then seek out insurance elsewhere.

dunstonh wrote: »

Yes they can because they have provided a service for that period. Whether you claim or not has nothing to do with it.

They haven't provided a service in a sense, because there is no valid insurance for the second driver.

That is often the best way but it may be too late now as they are aware of it.

In my experience these companies have so many call centre drones and such poor CRM software that you can just ring back without issue, and they are very unlikely to notice.

meester wrote: »

They haven't provided a service in a sense, because there is no valid insurance for the second driver.

Yes they have. It may not have been "'valid" but if any claims had been made by third parties it is almost certain that the insurer would have had to act as "Article 75" insurer, so from their perspective they have actually been exposed to almost exactly the same risk whether the policy is subsequently found to be void or not.

meester wrote: »

I think they are talking nonsense in any case, because if you made a claim for £20k of damage they would simply look at the driver and tell you you were not insured - don't believe it that they would let you get away with just paying the extra premium: if that were possible there would no reason for anyone to properly declare their insurance details.

As dunstonh pointed out, it actually depends on the nature of the non-disclosure. And actually, if the non-disclosure was inadvertent then if the insurer would still have accepted the risk had the correct details been disclosed, then the insurer must deal with a claim although they can charge backdated premiums by 'rewriting' the policy.

meester wrote: »

The fact is, you have had six months of insurance that would not have covered your son in the event of an accident. There is no way they can sue you for the extra premium, simply because they have not suffered any loss - in fact they have gained the extra £50 you paid, which would not have been valid in the event of an accident.

Again, the predominant risk in this case is that of injury to third parties, which the insurer could not have escaped liability for, so repudiation of claims for damage to the OP's car is possible but of marginal benefit to the insurer.

meester wrote: »

Anyway, best to avoid this entirely, just call them up and say you want to cancel the insurance, no need to give a reason.

http://www.tescofinance.com/personal/finance/insurance/carins/standard/breakdown-policy-doc.html

This policy may be cancelled:

• By you at any time by providing 7 days' notice in writing and surrendering the certificate. In such event, provided no claims have been made during the Policy year, we will issue a refund which will be calculated on a pro-rata basis, less a cancellation charge of 25%. This is not applicable to cover under Section E.

Then seek out insurance elsewhere.

The outstanding premiums will still be chased as part of the pro-rata cancellation and NCD proof will be withheld until it is paid, so this is probably not an option.

Personally I would write to the insurer accepting that you have to bear some responsibility for the non-disclosure but offering, say, 50% of the outstanding amount, given that no claims have been incurred (I assume!). Depending on you and your son's ages you could perhaps also mention that it should have been obvious that you were not husband and wife, although this is probably a weak argument.