Car insurance cancelled by insurer

markmcalear

I recently bought the missus a car and insured it (her) through Sheilas Wheels. She last drove in 2008 and was issued a letter by RAC which was proof of 5 years NCD.

We declared 5 years NCD to Sheilas Wheels, however after purchasing their policy it became clear that they would only accept a NCD if it was less than 2 years old. We have contacted them about this and they have said they are cancelling the policy and deducting £26 as a cancellation fee from the deposit paid.

Surely this cant be right???? I wasnt made aware of this 2 year rule before I bought their policy. The customer advisor I spoke to said that I should have known but how am I supposed to know if Im not an insurance expert??

They say they dont insure anyone without an NCD yet at no point in obtaining a quote did they ask the simple question "when was your NCD issued?"

To say Im not impressed would be an understatement.

Do all insurers use this 2 year rule?

lisyloo

Do all insurers use this 2 year rule?

Most, there are a few that go to 3 years e.g. Aviva?
However you might be past the 3 year point.

If you have a car it may have been better to have alternated the policy holder on your car to keep both NCDs "alive".

Quentin

lisyloo wrote: »

Most, there are a few that go to 3 years e.g. Aviva?.....

Aviva no longer.

vax2002

They are really starting to take the proverbial these insurance companies arnt they.
If you are a European insurance company reading this, the market is yours to take, get over here

raskazz

markmcalear wrote: »

I recently bought the missus a car and insured it (her) through Sheilas Wheels. She last drove in 2008 and was issued a letter by RAC which was proof of 5 years NCD.

We declared 5 years NCD to Sheilas Wheels, however after purchasing their policy it became clear that they would only accept a NCD if it was less than 2 years old. We have contacted them about this and they have said they are cancelling the policy and deducting £26 as a cancellation fee from the deposit paid.

Surely this cant be right???? I wasnt made aware of this 2 year rule before I bought their policy. The customer advisor I spoke to said that I should have known but how am I supposed to know if Im not an insurance expert??

They say they dont insure anyone without an NCD yet at no point in obtaining a quote did they ask the simple question "when was your NCD issued?"

To say Im not impressed would be an understatement.

Do all insurers use this 2 year rule?

How was the policy purchased - over the telephone or online?

raskazz

vax2002 wrote: »

They are really starting to take the proverbial these insurance companies arnt they.

What, by requiring that a proposer's NCD be not over 2 years old? We don't know enough about how the policy was purchased to check whether this was drawn to the proposer's attention.

vax2002 wrote: »

If you are a European insurance company reading this, the market is yours to take, get over here

What, like Axa, Groupama, Ageas, Allianz etc? Clearly the market is "theirs to take" despite none of them reporting a sub-100% motor COR in 2010.

You need to stop posting unhelpful rants.

dunstonh

Surely this cant be right?

If they say they only accept NCD up to two years ago and hers is over 2 years ago then by default it has to be right as 5 years is longer than 2 years.

I wasnt made aware of this 2 year rule before I bought their policy.

They dont have to make you aware of everything. That would make it impossible to use the phone to set it up. They are required to disclose key risks and facts only on the phone. The internet gives you more detail, should you choose to read it and not buy blind. If you DIY then it is your job to know what you are doing. They fact you didnt know is not their fault.

The customer advisor I spoke to said that I should have known but how am I supposed to know if Im not an insurance expert??

You chose to DIY rather than use an insurance expert. If you are going to cut out the broker then you really need to know what you are doing. Its like any area of DIY. If you know what you are doing you can save money. If you dont and you make a mistake then it is your own fault.

I'm sorry but this one appears to be down to personal responsibility and a lack of understanding. I have assumed you used the phone given the wording you used in your post. However, if you bought online then they do make this clear on the website (i coloured the key bit in red):
http://www.sheilaswheels.com/faqs/swm_faqs/car_insurance_faqs.html#faq_3

Do I need to provide evidence of my no claim discount?

If you decide to take out a policy with us, you'll need to provide evidence of your no claim discount, which must have been earned on a private car insurance policy. Please send us proof of your no claim discount within 10 days in the pre-paid envelope we will provide. Failure to do so within 24 days will result in your policy being cancelled. This is the original of your most recent insurance document from a UK insurer that shows the number of years' no claim discount you've earned, the expiry date of your last insurance policy and any claims you've made. Usually this is one of the documents in your renewal invitation from your last insurer.

Please note that we ONLY accept original documents from UK insurers relating to a no claim discount which has been earned on a private car insurance policy. We don't accept photocopies or documents from brokers or intermediaries. The expiry date of your last insurance must be no more than 2 years ago.

Please note that you can't use the same no claim discount on more than one policy at the same time.

Unfortunately, we can't return your evidence of no claim discount once it has been used for your policy.

If you have any difficulty in obtaining this proof, please call us on 0800 085 6910.

garth549

Yet again appalling treatment by an insurance company. Not saying they should accept the NCD in full, but they should at least try to work out some kind of compromise. It's disgraceful to just cancel the policy. Hopefully people will start to steer clear of the companies mentioned in these kind of threads.

dunstonh

Yet again appalling treatment by an insurance company.

Please explain how?

Not saying they should accept the NCD in full, but they should at least try to work out some kind of compromise.

Like what? How much would it cost for an actuary to work out a compromise figure and would you, if you were in the OPs shoes, be willing to pay for that specific cost for a unique policy? (ignoring the fact the underwriter or re-assurers may be imposing the terms and not the distributor)

It's disgraceful to just cancel the policy.

they offer their terms on a criteria. The criteria was not met and therefore cancellation is their only choice if they are not willing to accept the risk that they offer their prices on.

lisyloo

Hopefully people will start to steer clear of the companies mentioned in these kind of threads.

I don't think so.
I'm with this company, but fortunately I can read, so I think I'll be ok.
I did check my NCD was valid before going with them.
Disgraceful behaviour is not reading letters, policies, contracts and then expecting someone else to foot the bill for your total lack of personal responsibility.