forced cancellation of car insurance due to enemployment.

craftofboredom

Hello,

I just have a query in regards to my car insurance. I have been made redundant by the company that I was working for due to the business closing down. I informed Green Insurance about this and that is where my problem started.

Due to the fact that I was made unemployed, I was given 2 options:

1. Pay a cancellation fee of over £200. I can find another insurance company to insure my car with. I would have to also start another policy from scratch which means I need to pay for the deposit with the new insurance company I choose to go with.

2. Green Insurance were going to provide me another policy. I don't have to pay for the cancellation fee, but I would need to pay for the deposit of £170.

For someone who has just been made unemployed, isn't this a bit too harsh? It is discrimination of the unemployed I believe. I can understand if Green Insurance were to cancel the existing policy and offer to start another policy again, given that I wouldn't have to pay for the cancellation fee or the deposit.

I told the agent I was speaking to over the phone that I needed time to think about the situation, but the best that they can do is to give me 7 days to think about it. However, I would need to pay for BOTH the cancellation fee and the deposit. With that, I had to make a hasty decision which I thought was really bad considering it is quite a lot of things to consider and I didn't have any time to find an alternate solution for it!

I was just wondering if there is anything I can do about this? Being unemployed is already stressful enough as it is, and I had to deal with this problem and pay a further extra for the deposit (I chose the second option).

spiro

Did they say why you had to cancel your existing policy? Is it due to change of occupation?

Why, if they want you to cancel your existing policy would they offer you a new policy?

scheming_gypsy

Are you supposed to tell them? i just get my policy, pay monthly and that's it unless i change car or need to claim

craftofboredom

It was because I was made redundant and was unemployed. For some reason, the policy that I had with them was only available for employed people. Since I was made redundant and didn't have a job, they had to cancel that policy and offer me another policy where unemployed people were eligible.

I don't really understand it altogether myself, all I know is that it is two separate policies offered and discussed with Green Insurance over the phone. I don't know why they would offer me another policy if it wasn't related to them at least so it had to be their company's product.

Trebor16

Presumably this is your own personal policy you are talking about here?

If it is, you have been made redundant/lost your job and you have informed your insurance company of this. You mention a company called Green Insurance. Is this the company who issued the policy or are they a broker?

If Green are a broker have you considered contacting the actual insurers who cover your car direct?

Because of your change in employment status are they saying they no longer want to cover you on your existing policy and expect you to cancel your existing policy and pay a fee for the privilige?

Have they given you a full breakdown of the costs and how they arrived at the figures given to you?

Have you also looked around at other insurers for new quotes to see how they compare?

craftofboredom

I advised them of a change of circumstance because I along with being made redundant, I also moved houses. So I advised them with the change of address. At the end of the call, they asked me if there were any OTHER changes that I would like to inform them. Being unemployed is a huge change so I thought that I would tell them. That was it really.

Gordon_Hose

Never heard of an insurance policy only available to employed people.

craftofboredom

Trebor16 wrote: »

Presumably this is your own personal policy you are talking about here?

If it is, you have been made redundant/lost your job and you have informed your insurance company of this. You mention a company called Green Insurance. Is this the company who issued the policy or are they a broker?

If Green are a broker have you considered contacting the actual insurers who cover your car direct?

Because of your change in employment status are they saying they no longer want to cover you on your existing policy and expect you to cancel your existing policy and pay a fee for the privilige?

Have they given you a full breakdown of the costs and how they arrived at the figures given to you?

Have you also looked around at other insurers for new quotes to see how they compare?

Yes it is my own personal policy. Green Insurance is the company I have insured my car with. I came to them direct and discovered them in a comparison site. So I believe that I am dealing with the insurance company direct.

However, when I advised them of the change, they said that if I take the new policy that they offered, then I would not have to pay a cancellation fee.

I have just checked the letter that Green Insurance have sent me and this is as it says exactly...

"Following the recent change to your motor insurance, you now have a new policy with a different insurer and your new documents are enclosed."

On my Car statement of Insurance, it states:
"Markerstudy PC Green Private Car Statement of Insurance"
"Underwritten by: Markerstudy Ins Co Ltd and Co-Insurers"

So it may be possible that Green Insurance acted as a broker in this instance. Then again, the reason why I took this policy was because if I did, then I wouldn't have to pay for a cancellation fee.

Yes they have given me all the information about the insurance, I have them with me right now... I just don't understand this altogether completely.

craftofboredom

Gordon_Hose wrote: »

Never heard of an insurance policy only available to employed people.

Tell me about it. I wouldn'tbe having this problem if that isn't the case.

craftofboredom

Is there a number that I can call to confirm all this? I would like to know if what actually happened is legal and okay.

scheming_gypsy

what happens when you get another job? will they do the same again and want to cancel your insurance or sign you up to another policy?