Cornhill Online Ripoff/Swindle

Pretty_in_Pink_2

My boyfriend was insured with axa for the last 3yrs and at the end of the policy he sold the car that was insured. (Dec 2009) He made no claims in those 3 years and had proof of this in the form a renewal quote from axa.

Anyway to cut a long story short he had some money saved and was waiting for a rare high performance car to come up at the right price.

Anyway he managed to purchase the new car, which he attempted to insure via Cornhill on-line at the end of March 2010 after making the various comparisons etc. The online quote was 600 pounds roughly and the initial payments were paid. (Job done so you would think)

Everything went through fine until he sent through the proof of no claims discount according to Cornhill's instructions. Cornhill contacted him via telephone and said that because there was a gap of 90 days between coverage that the online quote was not valid and he had x3 choices.

1. He could continue the original "online" policy lose the NCD (yes lose all 3yrs) and pay 1400 pounds instead of 600 which was the original quote. Aparantly the brokers would not accpet my boyfriend was waiting for this rare car to appear and because there was a 90 day gap they could not offer this quote.

2. Take out a "new" policy via the phone immediately which would include the 3 yrs NCD and pay 1200 pounds over the year. (As it was a phone policy it would not be subject to the same online discount?!)

3. Cancel the policy completely.

What i can't understand is why Cornhill would honour the NCD over the telephone, but not online. Surely the risk is identical (well unless 800 pounds makes a difference, obviously it does.)

This is a shocking situation and a complete ripoff. I have a feeling this may not be the only insurer that behaves in this manner.

He had to additionally argue with Cornhill to get his over payment back from the original policy.

Any thoughts?

mattymoo

On the face of it it does not sound right. NCD is normally valid for 2 yrs after the old policy (from which it transfers) lapses.
I can only think that Cornhill think the NCD has been used on another policy 3 months ago and cannot be used again. That would be correct if their assumption is right.

Whatever happens, make sure he gets the original proof on NCD back from Cornhill as he will need it if he moves elsewhere.

Pretty_in_Pink_2

This is definately not the truth (he has insured no vehicle since December 2009), Cornhill could have checked this in the insurers database, additional proof could have been provided by my boyfriend, all sorts could have been done.

Looking at it from outside it seems they are swindling customers. More than likely as it's a high performance car and money can be made.

Yes fingers crossed it will be 4yrs NCD by february next year and he's already said he's off elsewhere.

TBH his faith is shot in insurers. If he cancels and goes elsewhere he expects the same or more problems so really he's stuck paying 800 pounds out more than the original online quote.:mad::mad:

Sorry I should say he went with option x2 after arguing with the international call centre for over a hour and a half

raskazz

The issue will be the gap in cover. The insurer will want to satisfy itself that the NCD proof received is from the last active policy. This is to prevent someone using NCD proof that is, say, 6 months old in order to gain NCD on a new policy, when there was a policy in the interim under which 3 claims were submitted which wiped out the NCD.

Just send a letter of complaint explaining that the previous policy was cancelled as the vehicle was sold and that the NCD has not been used on a policy in the interim. Enclose a copy of the proof of sale from the DVLA.

Pretty_in_Pink_2

Yes I will tell him to do that but I dont have much hope that the difference will be honored. Policy is set.

It is definately a swindle and 3yrs no claims should be just that. No time limits, expiration periods, no clauses. He's earned the NCD paid his premiums and been a careful driver.

If the DVLA letter is sent to Cornhill with a complaint it still requires an element of faith from the insurer, the only true way is to check their own databases for evidence of a claim. It does prove he sold the car, that's all it does.

He could also provide evidence of the new V5 and the purchase date. Again that does not prove there has not been a claim made.

Insurer's + police keep banging on about the insurance database, well I believe they use it when they want too. I.e. when it suits them. Otherwise they squirm out of giving a fair quote at the first opportunity.

BTW he sold the car to his brother for a pound for what it's worth. Who now has the vehicle insured under his own name/details

Quentin

mattymoo wrote: »

On the face of it it does not sound right. NCD is normally valid for 2 yrs after the old policy (from which it transfers) lapses.

There is no "rule" about how old NCD can be when transferring it between insurers.

Each insurer decides their own policy.

Cornhill only accept NCD dated within 30 days of the policy start date.

So no swindle or ripoff. A case of not reading the small print!

raskazz

Quentin wrote: »

There is no "rule" about how old NCD can be when transferring it between insurers.

Each insurer decides their own policy.

Cornhill only accept NCD dated within 30 days of the policy start date.

So no swindle or ripoff. A case of not reading the small print!

Sure, Cornhill can set their own acceptance criteria.

However, it is so far out of line with market practice that really they should make this requirement more prominent on their website during the quotation and acceptance process. The only way that they indicate this condition is by the little 'i' icon next to the No Claim Discount field. At the very least I would expect them to include it again in their 'Conditions of Quote' page immediately prior to payment, but they don't.

I'm sure the FSA would consider this a potential breach of TCF, especially if their MI showed that this particular point was a particular driver of customer complaints. Which I believe it will be.

Pretty_in_Pink_2

Quentin wrote: »

There is no "rule" about how old NCD can be when transferring it between insurers.

Each insurer decides their own policy.

Cornhill only accept NCD dated within 30 days of the policy start date.

So no swindle or ripoff. A case of not reading the small print!

Ahh then again is this clear on the website? Or during the process of completing the details online? Or within the policy document.

If not how would he know until the policy is issued or he is called?

It's called misleading. To offer an alternative on a technicality not clear/seen on the site at double the cost after taking money is a rip off/swindle. Why would Cornhill then offer to honour it at double the cost? It makes no sense!

Where is the small print? My bf has tipped this website upside down over the last few weeks and he did read the small print before arranging cover.

Feel free to help yourself the site only details what proof you should provide

**** It's also somewhat offensive to assume he did not read the small print. He's a stickler for detail. Possibly he missed something, but it's rare he does. ****

dacouch

If it was Cornhilldirect website it is in the FAQs

http://www.cornhilldirect.co.uk/carinsurance/carFAQs.html

"What documents do I submit as proof of my NCD?
This should be on your renewal schedule from your previous insurer, alternatively, your previous insurer can send you a proof of no claims letter, the documents must be up to date and must also be the original. If your no claims discount was earned whilst driving a company car please call us on 0800 32 888 3"

Quentin

Pretty_in_Pink wrote: »

Where is the small print? My bf has tipped this website upside down over the last few weeks and he did read the small print before arranging cover.

Feel free to help yourself the site only details what proof you should provide

**** It's also somewhat offensive to assume he did not read the small print. He's a stickler for detail. Possibly he missed something, but it's rare he does. ****

Don't shoot the messenger. You say he has turned the site upside down, yet ignored the small print when answering the quote questions!

When you complete the quote form, there are many questions that have small print - they have an "I" (information) button to click on. These include questions on the type of licence, claims, convictions, owner, annual mileage and NCD.

If you have already built up a no claims discount with another company this can be taken into account in your online quote and usually transferred to your Cornhill Direct policy. Unfortunately, we can’t carry over a no claims discount if you have had a break in car insurance for 30 days or more.....

Pretty_in_Pink_2

dacouch wrote: »

If it was Cornhilldirect website it is in the FAQs

"What documents do I submit as proof of my NCD?
This should be on your renewal schedule from your previous insurer, alternatively, your previous insurer can send you a proof of no claims letter, the documents must be up to date and must also be the original. If your no claims discount was earned whilst driving a company car please call us on 0800 32 888 3"

Yes they are up to date and current. My bf has had no other insurance, made no claims etc.

They were provided with the original , dated, renewal quote they asked for.

Where does it say it must be concurrent or... In the last 30 days?

It's open to abuse and pretty much what they deem to be "current"