Fronting - played by the book & got $hafted!

realaledrinker

My 17 year old son bought his first car in April & stumped up £2,500 insurance from his savings after we insisted that it was insured in his own name & with him as main driver - done by the book. Me & the missus got put on as additional drivers.

He passed his test today so his mum phoned M&S to inform them of his change in circumstances - done by the book.

M&S then kindly informed us that they no longer wished to insure him & cancelled the insurance - apparently they require two years driving experience post qualification before they will quote for a newly qualified driver.

Now I accept that M&S are at liberty to increase the premium, as he is now a bigger risk in their eyes, but it seems unbelievable that they would accept a premium from a learner in full knowledge that they would not insure him once he passed his test.

The best quote we can find now is £3500 from Endsleigh.

All this leaves a very bitter taste in the mouth & a young lad who went from euphoric to deeply distressed in a matter of a couple of hours. Where is the incentive to be open & transparent with the insurers if they treat young drivers in this manner. All his mates at school who have gotten a car in the last few months seem to be fronted & he can't understand why we can't do the same.

dunstonh

All his mates at school who have gotten a car in the last few months seem to be fronted & he can't understand why we can't do the same.

When one of his mates kills someone or has a major claim, your son will see why its worth being honest.

vaio

That's terrible, having a cancelled policy on your record is bad news, did they make this policy clear when you took the insurance out?

Just had a look at the online T&C and can't see anything that requires you to notify them of a change in licence status mid term and to me it’s axiomatic that any learner is hoping to progress to qualified status and therefore any insurer taking on learners should either make it very clear that you are going to get your policy cancelled when you pass your test or continue to provide cover at least until renewal.

The fact that neither of these seems to apply I’d consider to be either mis-selling of an unsuitable product and/or a failure to treat policy holders fairly and reasonably as required by the FOS.

Think I’d be tempted to fire off an official complaint

bouncydog1

Whilst it is not unusual for some insurers to increase premiums once somebody passes their test this is the first time I have heard of an insurer refusing to insure.

I have had a look at the M & S website and cannot see anything on there and if as you say everything was disclosed to them when your son took the policy out, there is something amiss.

I think that you need to contact them again urgently and ask to speak to the team manager and explain the circumstances - keep things polite and factual as it is possible that in the period since your son took out his policy their underwriting criteria has changed for new business and the telephone person your wife spoke to did not have a full understanding of process. If this is the case I would have thought that they should continue his cover up until renewal.

The circumstances in your son's case are slightly unusual because everything was done in his name to start with. Other cases raised on here are usually when the child was added to the parent's policy as a learner (lower risk because accompanied) and insurers refuse to add them to the policy to drive once they have passed their test. Often this would be because of the vehicle type e.g. learner on a 2ltr car accompanied, definately not the same risk as a newly qualified 17 year old out on the town in same car with mates in the back egging him on!!

If M & S won't budge then you need to ask for a pro-rata refund and also follow their complaints procedures.

By the way, when you were getting all of the quotes for your son, was the M & S one loads cheaper than any others? If so, didn't you wonder why?

On the fronting issue questions from your son stand firm and get him to have a look at some serious third party incidents e.g. the landrover derailing the train and explain to him the consequences of the insurers pursuing you as the fronter for their outlay!

PNPSUKNET

try going through adrian flux , but I would go through m&s complaints. whos the actual insurer?

King_Nothing

vaio wrote: »

Just had a look at the online T&C and can't see anything that requires you to notify them of a change in licence status mid term

It's pretty common sense though. I wouldn't like to see the outcome if you don't tell them, and he has an accident.

C_Mababejive

Thats why its a mugs game to play the system. Whether its fronting,saving till your an old dear and then having the state rob your bank account,being loyal to a bank or institution etc..the only thing that is important in the UK is selfishness and self interest. Dont let anyone fool you otherwise.

nearlyrich

Try Tesco and Endsleigh for a quote, who is the actual insurer? M & S are usually quite expensive for yung drivers inmy experience. I can see why they have the attitude they want more experienced drivers but they souldn't take te money from a learner if they are not going to keep them once they pass. Hope he gets sorted, it is hard and expensive to get insured legally but I think you are right to insist he does it properly.

vaio

King_Nothing wrote: »

It's pretty common sense though. I wouldn't like to see the outcome if you don't tell them, and he has an accident.

Yep, but insurnce doesn't run on common sense, it runs on what is written down in the policy (as long as it passes the FOS "fair & reasonable" test)

missi1

Hi, give the Insurance Factory a try

dunstonh

What is the make and model of the car? It may be that it is outside their accepted risk levels.

Whilst the parents were the primary drivers, it may have been acceptable. When they cease to be the primary drivers, it isnt.

Many companies will return the outstanding premium without charge applied when it is they that cannot offer cover.