Car insurance quote 'Have you ever been declined' etc....

foggytown

Selden wrote: »

Quite.

Insurers are taking law intended to apply to commercial marine risks underwritten individually by expert underwriters, and applying it to Ms Average's motor policy purchased through a call centre operative who is following a script.

No-one should be surprised that this can produce unfair results.

Even worse, nobody is trying too hard to stop them.

dunstonh

foggytown wrote: »

Even worse, nobody is trying too hard to stop them.

consumers get the service/product they are willing to pay for.

If you look at the best insurers, they will never appear as the lowest price.

I think the cost cutting that has gone on, driven by consumer demand for lower prices, has gone a bit too far. The UK is now amongst the worst Western economies for profitability for insurers. Its no wonder so many have closed their doors and are now in run down or have sold off parts of the company to venture capital investors only intent on running down the company. You even have the Pru thinking about leaving the UK now.

There needs to be a balance between cost and quality. We dont have that right now in the mainstream. You can do it but not if you look at price comparison sites that sort by lowest price first.

DKenni

Just thought I'd give you all an update of how I got on.

I went through a quote with Morethan and told them about the non disclosure. Initially the Private end (who I was put through to by mistake) point blank refused to take me on.

However when I went to get the car insured to allow me to travel to and from job sites and gave them the same information, they couldn't have been more helpful. They asked for details of the non disclosure and when I informed them, they were more than happy to take me on without loading the policy. I'm still not entirely sure how they arrived at the decision but they were happy that the policy was voided due to the fact that the insurer at the time wouldn't have covered me had the modifications been disclosed. I can only assume it. Regardless, I went through it all given every detail possible and they still gave me a great quote.

Unfortunately due to other issues I was unable to get a final policy with them (6 motnhs later would've been fine) but when the next renewal is up, Morethan will be my first port of call.

When Morethan were unable to finalise my quote, they transferred me to another company, who then transferred me to another company that take your details and supply you with a list of insurers who will take you on.

Finally, I got insured with Open + Direct. Luckily the non disclosure doesn't apply with them (although they were informed about it) as the question of 'have you ever been declined' etc is qualified with 'in the last 5 years'.

It's more expensive than what Morethan would've been but at least I now have at least 2 insurers who are helpful, reasonable and willing to actually talk to you rather than dismiss you on the basis of a ticked box:T

Jackapoo

Selden wrote: »

Quite.

Insurers are taking law intended to apply to commercial marine risks underwritten individually by expert underwriters, and applying it to Ms Average's motor policy purchased through a call centre operative who is following a script.

No-one should be surprised that this can produce unfair results.

Please can you be more specific as to which part would no longer be relevant to non disclosure issues with personal lines insurance now.

The commercial marine risk you refer to has changed more in the last 30 years than personal lines insurance. I believe that the rules are going to change soon for all insurance.

foggytown

Selden wrote: »

I am not denying that there may also be a good case for reforming aspects of commercial marine insurance law.

The point I was attempting to make is that the injustice is particularly stark in consumer insurance. We are taking law developed 250 years ago or more to govern face-to-face transactions between merchants with similar knowledge and bargaining power and applying it in 2010 to Mr Clueless and his online application for household insurance with Megacorp Insurance Co.

In an era when the very concept of "utmost good faith" is incomprehensible

CAUSATIVE

Please help

My wife's car insurance has been cancelled. The insurance company did not even want to specify what the reason was. After our persistence they only said that my wife did not give correct information, therefore the policy has been cancelled. Now my wife is trying to get another car insurance from other insurance companies but no success as on the question 'have you ever been declined' she has to now answer yes. So insurance companies refuse to insure her car although my wife did not falsify information in her policy. The thing is that my wife's car insurance has been done over the internet by someone else who said would fill in the application online correctly but did not do so. This service was advertised in a local newspaper for people who have no time to search for car insurance themselves. For a small fee this agent would do all the work for you. I feel we were victimized and I am not sure if there is anything we can do. Anyone has any idea what we can do?

Thank You

dunstonh

The thing is that my wife's car insurance has been done over the internet by someone else who said would fill in the application online correctly but did not do so.

Doesnt absolve your wife from a) being there to check and b) checking the documents issued in the post as she is requested in the letter.

This service was advertised in a local newspaper for people who have no time to search for car insurance themselves.

Is the person that provided this "service" regulated by the FSA? If so, then use the FSA regulated complaints process as a company providing this service takes on the liability for getting it right and correcting errors. If they are not FSA regulated then they are quite possibly acting illegally by undertaking actions which require an FSA permission.

I feel we were victimized and I am not sure if there is anything we can do.

You are not being victimised. You are suffering the fate that falls to people that supply incorrect information. You may be a victim of a dodgy local individual or you may be victim to an error from an FSA regulated company that is much easier to get resolved (which is the whole point of FSA regulation).

CAUSATIVE

Dear dunstonh

First of all thank you, for the quick response. The person who provided the so called "service" told to my wife that after receiving the insurance documents there would be no need to do anything. My wife did not expect that the service provider would give wrong information to the insurance company to get a low price for car insurance.
Another problem is that looks like the "service" provider has changed her contact details as we have not tried to get in touch with her for nearly a year and now we are unable to contact her at all. I do not really know what to do. Any idea?

dunstonh

CAUSATIVE wrote: »

Dear dunstonh

First of all thank you, for the quick response. The person who provided the so called "service" told to my wife that after receiving the insurance documents there would be no need to do anything. My wife did not expect that the service provider would give wrong information to the insurance company to get a low price for car insurance.
Another problem is that looks like the "service" provider has changed her contact details as we have not tried to get in touch with her for nearly a year and now we are unable to contact her at all. I do not really know what to do. Any idea?

I fear you have been scammed by a local con merchant.

You best bet is to go back to the insurance company and tell them what happened. You may need to get past the initial telephone line call/call centre individual who has no discretion to do anything. It may be better to go through to the complaints department. Whilst the insurer hasnt done anything wrong, you could argue that they are not treating you fairly as you have been victim of scam. The person there may feel sorry for you and agree to offer cover at a revised price based on real terms and therefore not class it as a cancelled/voided policy.

For future reference, any dealing in UK financial services requires FSA regulation. There is an FSA register that lists all companies that are regulated which you can view on the web. The simplest rule of thumb is that if a company is not FSA registered then do not use them. Adverts from regulated financial services companies require compliance warnings at the bottom. If there is no compliance message then assume the worst.

CAUSATIVE

Dear dunstonh

Thank you for the advice much appreciated.