Help! Car Insurance inquiry (Non disclosure)

Quentin

As has already been advised, even if you cancel they will still want paying the corrected premium up to the date of cancellation. Before deciding what to do, ask them how much it will cost you to cancel.

And as has already been advised, there are no repercussions in the future if you cancel a policy.

vaio

JimmyPegg wrote: »

.....It seems at this point I can either pay or cancel. I'm out of playing cards now. I have seen a few responses saying it won't effect if I cancel but don't some insurance companies specifically ask if you have cancelled policies in the past?

The questions are almost invariably "have you ever had a policy cancelled by an insurer?" hence the (good) advice above not to allow this situation to get to the point where the insurer cancels the policy.

You cancelling will be fine but still won't remove the need to pay the outstanding premium.

The charge they are asking for is the extra for the whole year but paid over two months, if you cancel you'll still have to pay for the 10 months cover you have already had and it could well be that the cancellation fee plus loss of a years NCB will be more than you save by cancelling

JimmyPegg

vaio wrote: »

The questions are almost invariably "have you ever had a policy cancelled by an insurer?" hence the (good) advice above not to allow this situation to get to the point where the insurer cancels the policy.

You cancelling will be fine but still won't remove the need to pay the outstanding premium.

The charge they are asking for is the extra for the whole year but paid over two months, if you cancel you'll still have to pay for the 10 months cover you have already had and it could well be that the cancellation fee plus loss of a years NCB will be more than you save by cancelling

I still can't believe they are allowed to do this and I have no route to be able to fight it. They are asking for money that simply isn't there in such a short space of time. I am not concerned about the no claims I would have earned in the year because originally the named driver was going to take out a new policy with the insurer after building 1 years but after this stunt - I may just have let the 1 year no claim go. I already have 10 years+ no claims but my brother doesn't currently have any.

Thanks for taking the time to respond again guys - very prompt.:beer:

vaio

Basically, they are saying that the extra premium you should have paid is about £50 a month, if you cancel you'll save two months so £100 but you will still owe £500 for the previous 10 months when you underpaid. Cancellation fee is likely to be at least £50 plus no NCB for this current year and they are unlikely to give you proof of NCB to take to another insurer until you have cleared the debt to them.

Assuming the extra is fair (as above do some dummy quotes to check) then you need to pay it. You could try and negotiate an extended period to pay.

Running_On_Empty

JimmyPegg wrote: »

I recently took out a policy in March 2012 with Co operative insurance. I have a named driver on the policy who is related to me(He is my brother). Anyway, I rang my insurance to inquire about when the named driver would get a no claims bonus as I was nearing the end of the policy and wanted to know when it would come through. I asked and the Lady then informed me that the named driver was named as Spouse and not as a Brother. She said as a result of this my last 2 monthly payments would be £450 as opposed to 160 which is what I would normally pay. They say I owe them money as the premium would have been more and they have calculated the amount I have been underpaying. Thats basically a thousand pound in 2 months!

Are they allowed to do this? Do I have any grounds to stand on? It was a genuine mistake as I took the policy out online. It was obviously a mistake as I even put down on the insurance that we live in different houses which kind of lends credence to the fact it was a genuine typo and not intentional deceit. It was a genuine mistake, I fail to see how such a miniscule detail such as spouse and relative has such a great bearing on the premium price?


Advice would appreciated. thx

You're getting steamed up about a mistake you made that if you had given them the correct info in the first place, you'd have been paying the correct amount.
Best you can do now is ask them nicely if you can spread the arrears you owe over next 4 months payments.

JimmyPegg

Running_On_Empty wrote: »

You're getting steamed up about a mistake you made that if you had given them the correct info in the first place, you'd have been paying the correct amount.
Best you can do now is ask them nicely if you can spread the arrears you owe over next 4 months payments.

I understand although I can't say I can see the logic in spouse & insurer being cheaper as opposed to insurer & whoever else. If I had known the price difference I most probably wouldn't have taken out that policy in all honesty. I will give them a call tomorrow and try to strike a deal with them but insurance companies are such unreasonable people at times.

keith1950

I may just have let the 1 year no claim go. I already have 10 years+ no claims but my brother doesn't currently have any

If you cancel you probably won't get any proof of your current 10 years NCB and would have to rely on renewal paperwork from previous years to prove it.

Quentin

keith1950 wrote: »

If you cancel you probably won't get any proof of your current 10 years NCB and would have to rely on renewal paperwork from previous years to prove it.

Ignore this.

When you cancel a policy this results in no ncd being awarded for the part year, but any you had that remains intact from the start will be confirmed by the insurer.

notanewuser

JimmyPegg wrote: »

I understand although I can't say I can see the logic in spouse & insurer being cheaper as opposed to insurer & whoever else. If I had known the price difference I most probably wouldn't have taken out that policy in all honesty. I will give them a call tomorrow and try to strike a deal with them but insurance companies are such unreasonable people at times.

There is a difference. There is a legal entity between spouses that does not exist between other relationships - what's mine is my husband's and visa versa. So in the event of a claim, it makes no difference who the payment is paid to.

I'm assuming its not your car that your brother is insured on, so you've effectively been fronting (illegal) anyway. So, if its actually his car, but you've insured it, the insurers would have to pay you in the event of a claim, but you're under no legal obligation to pass the money on. It leaves the insurer in a tricky position. They don't like it so they price accordingly.

JimmyPegg

notanewuser wrote: »

There is a difference. There is a legal entity between spouses that does not exist between other relationships - what's mine is my husband's and visa versa. So in the event of a claim, it makes no difference who the payment is paid to.

I'm assuming its not your car that your brother is insured on, so you've effectively been fronting (illegal) anyway. So, if its actually his car, but you've insured it, the insurers would have to pay you in the event of a claim, but you're under no legal obligation to pass the money on. It leaves the insurer in a tricky position. They don't like it so they price accordingly.

I understand but I even put down different addresses. My spouse in a different address? Must be one rocky marriage no? lol. Like I said it was a genuine typo. If I had known the premium would have differed so much I would not have taken out that policy. They basically expect me to pay double the policy price in two months. It is my vehicle that he is insured on and I am the main driver. I only own 1 vehicle so it is most certainly, not fronting.