Car insurance want back payment for points on licence

Mathsguy

Hi, can someone please help us understand where we stand with this. It seems the car insurance company are making totally unreasonable demands...

My girlfriend got a renewal quote for her car insurance last month and after phoning them to discuss, they asked about any points on her licence. She said she hadn't had any more than the ones she got a couple of years ago which she told them about at the last renewal. The advisor said that they had no record of these points on her file and that she would have to pay a back payment.

She said she definitely did tell them and said to check their phone records. Sure enough they did and they said that although she did tell them, and said it was for going through a red light, she didn't give the full details (the code you get e.g. TS10) and so it was not applied and they issued the insurance renewal without the ammendment.

They now want over £500 in back payment and we are livid because if they had applied the correction and given the quote we would ofcourse have gone elsewhere. I believe that because she told them, she fulfilled her obligation of letting them know of any change in circumstances and it was the fault of the advisor not to make any note whatsoever on her file, or call her back to get the code.

Can anyone help with some advice?

Many thanks.

R.

fivetide1978

I would fight them all the way. Actually, to be honest i would just take my business elsewhere. Assuming she hasn't claimed I can't see how they could make you pay for their mistake.

We had a similar argument with an insurer a while ago because the documents issued had the wrong registration on it (only one letter) and i managed to get stopped for a random check. They tried to claim i wasn't insured etc but went back to the phone records and found it was their mistake. One FSA threat later they backed down.

5t.

System

didnt she read her documents when they arrived ?the initial error could have been put right straight away.

dunstonh

if they had applied the correction and given the quote we would ofcourse have gone elsewhere.

Who would have also increased her premium because of that information.

I believe that because she told them, she fulfilled her obligation of letting them know of any change in circumstances and it was the fault of the advisor not to make any note whatsoever on her file

There is possibly some grounds there but it would depend on what she has told them. It is strange that they didnt ask for details when they found out there were points. It could be that they didnt interpret what was said to be a traffic conviction as she didnt give them the information to make that leap. Going through a red light could get you a warning and that wouldnt be an issue.

Technically, the insurer is correct in asking for back payments. They have provided insurance based on incorrect details. However, I would suggest you ask for a copy of the tape or a transacript to see if the fault on the points is with them or with your girlfriend. Knowing what was said will allow you to decide if you have grounds to get a reduction on that cost or not. If they refuse to supply the tape/transacript then you can put in a formal complaint.

However, that would only apply to the year she notified them. Why didnt she pick it up on her renewal notices? She has a requirement to check these are correct and inform them if they are not.

I would fight them all the way. Actually, to be honest i would just take my business elsewhere. Assuming she hasn't claimed I can't see how they could make you pay for their mistake.

They could pass the debt to a collections agency and wreck her credit record. They could void the policy or more likely cancel the cover refuse to confirm any no claims discount. This would have the double whammy of her having to declare that a policy was cancelled by the previous insurer due to non payment and of course without no claims discount, her premiums would go up.

Mathsguy

Sorry, perhaps I didn't make a couple of things clear... They did ask for the code on the phone but she did not have it to hand (surely they could have just looked it up?) They claim they called back 5 times but there was never any messages, they did not send anything in the post or email.

I understand that if you purposely do not tell the insurance company that you have points when asked then you should pay the back payments but she did tell them. I know other companies may have increased premiums too but most probably not by so much.

Why did they issue the insurance knowing that there was an outstanding problem they had not resolved?

She has never made a claim.

She decided to cancel the insurance and has gone elsewhere now, but they still tried to charge for this year despite telling them otherwise (another blunder on their part)

dunstonh

They did ask for the code on the phone but she did not have it to hand (surely they could have just looked it up?)

They dont know what she has been prosecuted/convicted of. There are mulitple codes depending on the severity. it sounds a bit 50/50 here on responsibility. She knew she had to contact them back but never did. They were waiting for her but never got it and never took any action beyond that.

Why did they issue the insurance knowing that there was an outstanding problem they had not resolved?

By the way you explain it, it was probably sitting in someone's in try waiting for the information to arrive to be processed. The renewal docs would have gone out not knowing there was a problem.

She decided to cancel the insurance and has gone elsewhere now, but they still tried to charge for this year despite telling them otherwise (another blunder on their part)

In which case, passing it to a debt collection agency is the most likely option if the dispute cannot be resolved. So, it is important to get a resolution. A formal complaint may be the best way to achieve that.

Mathsguy

Cheers dunstonh, you've been very helpful. I guess she is partially at fault, It just seems very unfair.

Perhaps we can negotiate with them for a 50:50 split or something...

Thanks everyone else too.

fivetide1978

dunstonh wrote: »

They could pass the debt to a collections agency and wreck her credit record. They could void the policy or more likely cancel the cover refuse to confirm any no claims discount. This would have the double whammy of her having to declare that a policy was cancelled by the previous insurer due to non payment and of course without no claims discount, her premiums would go up.

The way i was reading it (and it looks like that's what has been done anyway) this was at the renewal point.

To that end they won't be able to cancel the policy will they? it has run its course.

Also all you need for proof of no claims is the renewal letter which i presume she has confirming no claims...

They could pass the debt on i guess but at the same time would they not have to look to recover the debt through court? If that is the case and she did tell them about the poitns (i.e. no attempt at fraud) then i would have thought it would be very difficult for them to prove their case. As stated, if they were waiting on information, they should have issued a letter saying so not issued the policy documents.

I know i have had "we are still waiting for proof of no claims. Respond in two weeks or we will cancel the policy" letters so why didn't they do that?

5t.

raskazz

On the basis of what you've posted I don't think that the insurer can really backdate any premiums. When there was no response to their calls then they should have sent a cancellation letter; in letting the policy run they have really waived their right to backdate premiums. I would certainly put in a complaint if they still insist on charging.

Oscar_The_Grouch

I agree with raskazz. The Financial Ombudsman takes the view that if you provide material information (in this case the driving offence) and the insurer wants more detail, it is up to them to ask for it. If they do not pursue that information, the fault lies 100% with them.

I agree that your girlfriend could have done more, but what has to be taken into account is that the Insurance company is supposed to employ professional (or prudent) underwriters to assess each risk; if it was important to them, they should have pursued the matter.

Tell the insurance company where they can shove their additional premium and the FOS will support you.

JonBoy_SCFC

i agree with raskazz and oscar so we have a full house!:beer: