Non-Payment of Car Insurance

Angie_x

Hi all - I have been with my current insurance provider for a few years now and have had no problems with my multi-car policy which expires in January. I changed one of the cars earlier this month and called to amend the vehicle details only to be told that they had not requested any of the monthly premiums since April (when I also changed a car). This non-payment is through no fault of mine which they freely admit and I dont see why I should pay the missing installments as I don't even know that I have been covered during this time. I would be grateful for any advice as I don't know where I stand legally. :question:

Morph4610

Hi Angie, do you have an up to date insurance certificate showing this vehicle on cover? If you do you've definitely had the cover and should pay. If not make sure you are covered now by getting one. Then you can argue about what actually happened. I'm assuming that if you had an accident you would have expected them to pay out so the likelihood is you should pay

Angie_x

Thanks for responding Morph4610. I received a certificate in April for the car which was amended then but it was at that point they stopped requesting any monies. They have now issued me with a certificate for my second car and I have no problem with paying all monies from this date. If I had needed to claim between April and now I have no evidence that they would honour this no matter what they say in hindsight. I believe I could be paying for a cover which I have may not been receiving.

Quentin

They haven't operated the DD which is poor.

But no excuse for you to try and get out of paying what you owe them. (How did you "miss" these payments not leaving your account?)

Legally you owe them the money and must pay it. If you don't pay, then they will still pursue you for it (and cancel your cover, leaving you in the position of having to go to specialist and expensive insurers who will take on those who have cancelled policies on their record)

Warrick

The problem you'll have here is that they will be within their rights to cancel your cover if you don't pay, as you won't have paid the full premium for the cover you've had.

I understand your counter argument, but if it were me I'd pay the premiums to ensure my cover continues uninterrupted, and then launch a formal complaint. Realistically you could argue that they have left you unknowingly without cover, which is a breach of the industry guidelines. Take it to the ombudsman if you don't get anywhere with the company, but I don't think you can expect more than a 'token' gesture and full written apology.

SueMaggie

There haven't really been any identical cases publicised by the Financial Ombudsman Service but 31/1 on this page has some relevant aspects.

In cases where insurance premiums have not been collected, the Ombudsman tends to feel that the customer shares some of the responsibility for not noticing that the money has not been taken from his bank account.

So you could try to make a case that you shouldn't have to pay all of the missed premium, but I think you'll have to pay some.

Angie_x

I'm not trying to get out of paying them Quentin but would I be paying for something which I haven't had?.
I honestly don't think they would have accepted any claim during this time. Im sure if payment wasn't being received through my cancelling it and had an accident they would not accept that I pay any missing installments for them to pay out. If I had been stopped by police could I have been prosecuted for driving without insurance? Why should I be penalised through their incompetence?.

Thanks Warrick - That's certainly something to consider.

Quentin

Angie_x wrote: »

I'm not trying to get out of paying them Quentin but would I be paying for something which I haven't had?.
I honestly don't think they would have accepted any claim during this time.........

All irrelevant.

You did have cover, you had a certificate, the police didn't stop you, etc etc.

You asked where you stand legally on this.

Now you know, but want to argue the legality - up to you, but beware the consequences of not paying what you owe them, and them taking action against you, as well as cancelling your cover.

Angie_x

I also have a certificate for the car which I changed - does that mean I still have cover for that? How do I know the policy didn't stop - I never had to claim. If I hadn't changed my car and renewed with a different company in January would you then say I had to pay them until that point?

Quentin

You started your thread to ask:

I would be grateful for any advice as I don't know where I stand legally

Having been given the answer, (which you don't like), your other option is to see if they will accomodate you by taking the money you owe on some instalment plan, pointing out to them their poor admin.

(Though it's noted you haven't said how come you never missed them not taking the payments!)

dunstonh

This non-payment is through no fault of mine which they freely admit and I dont see why I should pay the missing installments as I don't even know that I have been covered during this time. I would be grateful for any advice as I don't know where I stand legally.

Failure of the direct debit does not remove your liability for the money owed.

I'm not trying to get out of paying them Quentin but would I be paying for something which I haven't had?.

You have been provided insurance. You have a certificate of insurance and you would have been paid out had there been a claim.

I honestly don't think they would have accepted any claim during this time.

Yes they would have done. Your opinion is wrong in this respect.

If I had been stopped by police could I have been prosecuted for driving without insurance? Why should I be penalised through their incompetence?.

You seem to think you were not insured. However, you were. It was a payment failure. Not a policy failure.