Car insurance woes

fishtaxi

(apologies, this is a bit long winded....)

I paid for 12 months car insurance in June. At the same time, I bought an additional 12 month breakdown cover policy through the broker's own breakdown service.
A few weeks ago I changed my car, so I phoned up the broker to get it changed over. I was told a new policy had to be taken out, as the current insurer would not insure my new motor. So a hefty admin fee later I was insured once again.
On purchase I enquired as to how my breakdown cover would be affected, and was told that as I had paid for a years cover, it would simply transfer to my new vehicle.

Shortly after buying the car I had a breakdown, 200 miles from home. I phoned my breakdown service, and they sent someone out who towed by home.
Three weeks later, I was sent a letter by the broker to say they had cancelled my breakdown cover when changed vehicle, and so I had to pay them £450!!!!!

My argument is I was told the breakdown cover would be transferred.
I was also not told of any cancellation at any time, by the broker or when I phoned up the breakdown service (who had me registered as a member on their system).
Obviously, I would not have phoned up to request assistance had I been told I had no breakdown cover, and presumably they would not have sent someone out.

So, my question is- can my insurance company/broker cancel my breakdown cover without even telling me?
By not being made aware of a cancellation I was led to believe my breakdown cover was valid.

It seems this is a deliberate attempt to avoid paying the breakdown costs when I had already paid for cover.
So far I have reported this to the financial ombudsman, sent numerous emails to the broker and received numerous patronising replies. I don't seem to be getting anywhere.

So from here, what's next?
Trading standards, consumer direct, solicitor???

dunstonh

So, my question is- can my insurance company/broker cancel my breakdown cover without even telling me?

Yes. However, it is usually done with an audit trail to show that you know.

So far I have reported this to the financial ombudsman, sent numerous emails to the broker and received numerous patronising replies. I don't seem to be getting anywhere.

So from here, what's next?
Trading standards, consumer direct, solicitor???

First thing is to calm down. There is a structured complaints process to follow. If you try an circumvent the process it will get you nowhere (or will slow things down). If you bring in other parties, you could incur their costs and the broker wont have to pay them. The costs could exceed the amount you are asking for back.

First you complain to the broker making sure they know its a formal complaint (in case they think you are just venting). They will acknowledge the complaint in writing and inform you of the complaints process and about the FOS. Once they have looked at your complaint and given you the response, you are free to refer the case to the FOS if you dont like the outcome or you can accept their response.

You cannot go to the FOS without going through the complaints process first (if you do, the FOS just forward your complaint to the firm but will offer no opinion or comment on it - the FOS telephone line tend to be very agreeable with everything you say as default. The most common response being "oh yes, that is something we would like to look at")

The FOS rule on a similar basis to a court of law but with a slight consumer bias that includes fairness (and a few other things that a court would consider which could favour a firm but the FOS will not).

mikey72

fishtaxi wrote: »

So, my question is- can my insurance company/broker cancel my breakdown cover without even telling me?

dunstonh wrote: »

Yes. However, it is usually done with an audit trail to show that you know.

So what you mean is no then, they can't cancel without making sure they tell you.

vaio

fishtaxi wrote: »

.....So, my question is- can my insurance company/broker cancel my breakdown cover without even telling me?.....

dunstonh wrote: »

Yes. However, it is usually done with an audit trail to show that you know......

mikey72 wrote: »

So what you mean is no then, they can't cancel without making sure they tell you.

or is it yes and they normally tell you (but don't have to)?

Don't you just love the insurance industry

dunstonh

So what you mean is no then, they can't cancel without making sure they tell you.

What I mean is that they may well have an audit trail but the letter wasnt read, wasnt received or wasnt sent.

mikey72

dunstonh wrote: »

What I mean is that they may well have an audit trail but the letter wasnt read, wasnt received or wasnt sent.

I don't think that would count, it's in there along with wasn't printed, or wasn't written, to be honest.

dunstonh

mikey72 wrote: »

I don't think that would count, it's in there along with wasn't printed, or wasn't written, to be honest.

Problem is that if they have a copy of it on file then the assumption is that it was sent.

mikey72

I think that would be a poor assumption as it appears they forget to send it to the breakdown company as well in this case.

"I was also not told of any cancellation at any time, by the broker or when I phoned up the breakdown service (who had me registered as a member on their system)."

Although "it must be lost in the post" does appear to be a common excuse with insurers now
.
Maybe it's tme to make them start sending everything signed for, to stop them abusing the system.

System

The broker informed the customer that the breakdown cover was a seperate policy that would be transfered to the new vehicle, that verbal message was as good as a contract in my opinion.

Reasonable T&Cs for breakdown policies will allow the cover to be transfered to a new vehicle, I would be interested to know which breakdown company the cover was with and what the T&Cs say about change of vehicle. I cannot see any reason why an independant policy for breakdown cover would need to be cancelled in this case.

OP - write a letter of complaint to the broker who either misinformed you that the cover would transfer to the new vehicle or who failed to record the new vehicle details on the breakdown policy or to get them to correct their error with the breakdown company, you should have breakdown cover on the new vehicle at no additional cost (except maybe a small admin charge for change of vehicle if in the T&Cs)

dunstonh

Just for clarification, the OP has a good complaint here and should make it.

Maybe it's tme to make them start sending everything signed for, to stop them abusing the system.

Stick another 15% on current premiums then.

Although "it must be lost in the post" does appear to be a common excuse with insurers now

I get about 2 misposts delivered to me a week. Sometimes I get the whole post of a neighbour. Not everyone forwards the mail on.

lisyloo

I think that would be a poor assumption

Unfortunately this is the law (and for reference I don't like it).
If the police send you a notice of intended prosecution and you don't receive it then you can be prosecuted.
I believe this has been tested in law.
The assumption is always that if it has been sent then it has been received (unless of course you had some evidence it wasn't actually sent).

Maybe it's tme to make them start sending everything signed for, to stop them abusing the system.

I would like to see this for some things (cancellations/prosecutions) and I wouldn't have any objection to a couple of quid on the premium.
15% sounds a lot even if a staff member has to physically go to a post office.