Car Insurance & Redundancy: Warning!

Hoxy_Hoggins

Hello all,

A post which may provide some warning to those in a similar situation to my own with regard to car insurance.

Having heard a recent radio item, I phoned my car insurer today to inform them that as I was recently made redundant, that they might want to take that into account on their records (and, indeed, to comply with their policy terms). Given that I now have a large reduction in commuting mileage, I thought that the changes would probably offset the other in terms of any costs.

I was surprised to find that the underwriter now classes me as "not insurable" on the "scheme" I am on and cancelled the policy immediately. With 4 months cover remaining, their cancellation policy and fees means I'll be refunded just £1.55! Given that it is THEY who are cancelling and not ME the loss of cover at an already tough time seems particularly unjust...

So I am now unexpectedly left needing to find a new insurer, the cost of cover at a time when it was not due and all because I was trying to be straight with them...

I was of course offered an alternative policy, which was more than I paid last year, despite declaring an estimated 20K miles less.

So, if faced with this situation, do you keep quiet and have a claim rejected if you have a bump or tell them and lose out as I have?

Either way: be wary!

Oh yes, who? Bradford and Bingley, through BISL in Peterborough.

oscarward

Hardly treating you fairly, was the scheme you were on a special one?

Hopefully you'll find something soon.

raskazz

If the product that you are currently on does not accept those not in employment then you cannot really argue with the cancellation.

However, in the circumstances one would expect a pro-rata cancellation rather than short-period rates. Submit a written complaint to the broker and copy in the insurer, requesting that they cancel pro-rata with no cancellation fee, as it is they who are enforcing the cancellation.

luci

You need to get this sorted with your current insurer, otherwise you will have to declare that you have had insurance cancelled on all future applications for any type of insurance.

mikey72

First, see if can can get a quote online as a new customer, with your new job.
Then check which underwriters they offer.

What did they class you as, as redundant isn't an occupation, retired, househusband, unemployed are.

Hoxy_Hoggins

oscarward wrote: »

Hardly treating you fairly, was the scheme you were on a special one?

Hopefully you'll find something soon.

Not that I'd been made aware of, no. Just a motor normal motor policy albeit one which when changed in this way becomes void.

Thanks for your wellwishes.

Hoxy_Hoggins

raskazz wrote: »

If the product that you are currently on does not accept those not in employment then you cannot really argue with the cancellation.

Agreed, though the policy becoming void in the event of unemployment was not something I had ever considered, and not something I'd been made aware of when taking the policy.

However, in the circumstances one would expect a pro-rata cancellation rather than short-period rates. Submit a written complaint to the broker and copy in the insurer, requesting that they cancel pro-rata with no cancellation fee, as it is they who are enforcing the cancellation.

A good idea - I will try this. Thanks.

Hoxy_Hoggins

luci wrote: »

You need to get this sorted with your current insurer, otherwise you will have to declare that you have had insurance cancelled on all future applications for any type of insurance.

This is a VERY valid point which I'll be checking on with them today. I don't want to be penalised forever because of this decision. Thanks for pointing this out.

Hoxy_Hoggins

mikey72 wrote: »

First, see if can can get a quote online as a new customer, with your new job.
Then check which underwriters they offer.

What did they class you as, as redundant isn't an occupation, retired, househusband, unemployed are.

No new job yet, hence my reporting a status change to them as Unemployed.

When I've got this sorted, I'll actually be able to spend some time looking for a job again!

Quentin

raskazz wrote: »

However, in the circumstances one would expect a pro-rata cancellation rather than short-period rates. Submit a written complaint to the broker and copy in the insurer, requesting that they cancel pro-rata with no cancellation fee, as it is they who are enforcing the cancellation.

It can't be an "expectation", just a "hope"!

It is the customer who has changed the goalposts in this instance, not the insurer.

When insurers cancel because they have decided to pull out (or whatever), then they do give full pro rata refunds, but these circs are different.

Instead of steaming in with a written complaint, it might be more productive for the op to appeal to a manager, explaining the circs and seeing if some goodwill can be gained (maybe in exchange for staying with them).

Though we are talking bisl here!

Hoxy_Hoggins

I didn't move the goalposts of my own choosing. I rang to comply with the conditions of the policy and inform of change. That I've lost 4 months / £100 of cover with no real refund is the issue. I don't drive any less well just because I'm not working at present.

My prime concern is that this may haunt me because insurers seem to need to know if you've ever "had a policy declined, CANCELLED, or special conditions imposed?" Any advice on this would be welcome as, despite requesting a callback at 5pm today from a manager at BISL to clarify this point, it has yet to happen... I don't want this hanging over me - what has happened here is bad enough without being penalised forevermore for something which is not my fault.

TIA.