Car Insurance provider stopping cover

lovejoyviii

can someone advise me just had a letter from the car insurance broker who arranged policy on a car i bought 2 months ago. the letter stated that the policy would have to be stopped next week.they said that the no claims discount we claimed we had was being used on the other car we have.so if we wanted to continue we had to pay another 50% which i said no to, as we were at the top of our budget when we agreed to the original policy and it was going to cost more than i paid for the car. so i asked to cancel and they want 50 quid from me to do so. i must admit i thought no claims proof was a letter from your insurers that you hadn't made a claim not a something that was only assigned to 1 cars policy. can they enforce the 50 quid or as they effectively varied the t & C's can they get lost.I don't wanna pay as the 2 month advance i paid at the start is up next week anyway but don't want adverse on my file if i stop the dd.

Quentin

You were mistaken about what no claims discount is.

THey are entitled to you either paying the correct premium for the year or enforcing their cancellation charges if you decide to cancel.

If you stop your DD, then they will still pursue you for the money you owe them, and this could escalate into the black marking you fear! (Or worse should they cancel your cover due to your misrepresentation and default).

So do get this sorted before it does escalate.

vax2002

Good advice above, as well expect the other company to cancel the other policy due to doing the same thing to them.

forgotmyname

As soon as you miss a payment it may show on your credit file, Refusing to pay will just get a black mark every missed payment.

You need to sort it out properly if you dont want a bad credit history.

Dont forget when you renew the policy you are keeping you will need to notify them you have had a policy cancelled which may increase
your next premium. Fail to declare that and you maybe left uninsured.

Also the car your cancelling the insurance on will need to be taken off the road and declared SORN unless you want a big fine and risk it
being towed and crushed.

Its a NO WIN/ NO WIN situation.



"Things can only get better" goes the song, Obviously this doesnt apply to car insurance.


.

thenudeone

lovejoyviii wrote: »

they said that the no claims discount we claimed we had was being used on the other car we have

You can only use NCD one one car at a time, although some insurers will sometimes match NCD onto a second policy for a different car.

So unfortunately they are right. You should do everything possible to come to an amicable agreement with the insurer (either pay the extra or cancel it and pay the cancellation fees). Otherwise they will cancel the policy and you will have to declare that fact every time you apply for insurance, which will make getting insurance very difficult in future. Most insurers simply won't touch people with a cancelled policy mark.