Insurance policy voided. How do I get insurance afterwards?

ChumpusRex

I recently had a car insurance policy cancelled by the insurer. The circumstances are very simple:
1. I had given the insurer a continuous charge authority at the time of taking the policy.
2. I asked the insurer to renew the policy after 1 year.
3. They did so, sent the new certificate, and a letter thanking me for paying.
4. The payment never went through. ( I later checked with the bank, they confirmed that the card details were correct and the card was valid, and that there was adequate funds. They also confirmed in writing that no transactions had been requested or declined on the renewal date. They also confirmed that the insurer had taken payment on the card for 'breakdown' insurance, but had not charged the card for the motor insurance policy)
5. The insurer sends a single letter by first class post (which I never received - presumably lost in the post, as I lived in one of a number of large new-build apartment blocks, where post regularly got mis-delivered) telling me my policy was being cancelled in 7 days, after the card payment had been declined.
6. About 1 month later I get 2 letters, purporting to be from solicitors, threatening to sue for return 'of their client's property', vis a vis the insurance certificate.
7. The details in the above story have been filled in with the result of a complaint against the insurer - but they essentially fobbed me off, saying that they acted within the law, and gave me appropriate notice of termination of the policy, and that it was my fault for refusing to pay my debts (their words) and failing to address my arrears (also their words).
7a. As part of the complaint, I asked why the insurer did not use recorded delivery, or follow-up the letter with a phone call. They told me that they can't afford to use recorded delivery to chase up every late payer (their words), and that they don't do business by telephone (funny, that's how I bought the policy in the first place).

The problem is that I now have serious difficulty getting insurance.

I have to go via a broker for my car insurance - where I pay literally 3x the price, that I get quoted on online price comparison sites (£1300 TPFT on an old Hyundai - clean licence, professional, 5000 miles, commuting use only, 10 years no claims).

It's also basically impossible to get home contents insurance, etc.

Is there anything I can do? As soon as I tell insurers that I had a policy terminated, they don't want to know me. They're not interested in the circumstances.

Is there any way to get this policy cancellation off my record? I don't believe that this was my fault, yet the insurer have basically, told me that I was negligent in not paying the bill (despite the bank telling me, in writing, that a request for payment was never presented)

huckster

The policy was not voided or terminated. It stopped because there was a c*ock up with the payments.

Voidance or cancellations that need to be disclosed are where deliberate non disclosure, fraud have occured or too many claims have been made, where Insurers refuse to continue cover.

I am sure that if you just phone Insurers or a broker, explain that the last policy was stopped due a payments mess up, they will be ok and should be abe to arrange cover at normal terms based on the details of risk. If you have not got the no claims proof, that will the only problem.

I think you need to make a complaint by writing to the managing director or CEO of the Insurers concerned. If you can get a letter from your bank, confirming that the Insurers did not attempt to collect payment, that would help. Then if the Insurers see from their records that you asked to continue and they had the necessary payment authority, they must see this as their mistake. They should then deal with the complaint and compensate you as necessary, with you going to the FOS if you cannot resolve.

ChumpusRex

Thanks for the reassurance. I guess the thing to do is just get them to issue a letter stating that the insurance policy was stopped because of a payment problem.

The final letter I received from them said "Your policy was voided on xx/xx/xx." Hence, I had interpreted this as meaning that the policy was 'voided'.

I had already been through the compaints process. They said:
1. that the payment had been declined, several times as they presented the payment repeatedly.
2. They contacted me urgently, warning me of the failed payment, but that I failed to respond to this urgent communication (after a lot of questioning, I eventually found out that this 'urgent communciation' was a single first-class letter sent by normal post).
3. As I was informed of the failed payment, and failed to make appropriate payment given ample opportunity, it was me that was negligent.

huckster

Bet they had the card number or vaid from dates wrong.

They should not use the word void, unless it is warranted.

Sounds like a cr*p company.

Do say who they are to warn others.

magpiecottage

huckster wrote: »

I think you need to make a complaint

Very much so!

by writing to the managing director or CEO of the Insurers concerned.

Not necessary to go that high - get the details of the insurer here. Once you find your one look for a fax number either under "basic details" or "contact" (contact is better as it is the address for complaints but either will do).

Then fax the complaint. They will have to start dealing with it immediately.

If you can get a letter from your bank, confirming that the Insurers did not attempt to collect payment, that would help.

It would - but crack on with getting the complaint moving.

Then if the Insurers see from their records that you asked to continue and they had the necessary payment authority, they must see this as their mistake.

I fear you credit the insurer with more competence than it deserves!