Car insurance declined - help please

Purse87

Hi everyone

I just renewed my insurance online and then 3 days later got a letter through to say it was declined and I am not insured. The letter said it was due to failing a credit check, but I had paid in full so I rung them up to query this. Apparently it is not a credit check financially I have failed, but that I am considered to be more at risk of claiming.

I have 3 years NCB, and have never claimed in my 7 years of driving (first 4 years I was a named driver) I have not withheld any info, I had my bumper and spoiler stolen once off of my ST but I paid to repair that myself and not claim through the insurance, so I don't put this down as it didn't cost the insurers anything and I didn't tell them it happened.

What I want to no is 1, how can they say I'm more likely to claim if I never have claimed and have 3 years NCB, and also do I now need to declare this when I get another quote that I have been declined? Or can I go back to my previous insurer and just say I changed my mind?

Thank you

Quentin

Write a formal complaint to them asking why you have had the policy declined, and escalate if you aren't happy with the answer.

As it stands, the question normally asked is along the lines "have you ever had insurance declined, cancelled or voided?", and you would need to answer "yes".

(You say you have "not witheld any info" yet had a loss but never disclosed this when buying insurance, meaning you have lied on all your applications - this is enough of a breach for an insurer to decide they don't want you if they consider you cannot be trusted to tell them the truth!)

Purse87

But the loss was mine, I took the cost not the insurance company so surely I'm even better to insure cos I won't bother goin through the insurance?! It cost me £2k to repair now I wish I just went through the insurance seeing as my renewal is now going to be double with the declined insurance part!!

And how they would have found out about it anyway I don't know?
I have just wrote to them, I did ring but they weren't very helpful and couldn't tell me why, hopefully I get a response! Thank you!

forgotmyname

It was an incident that classes you as a higher risk.

Declare all accidents/incidents even where no claim has been made.

spacey2012

I would serve them a deadlock notice and given the seriousness of the situation ask the FSA to investigate to mitigate losses.
They are liable for any losses they generate due to non performance of the contract and they can only withdraw the contract if you have broken one of the clauses.

ppc1

It might be something to do with claims underwriting exchange. It is possble that the local authority/police shared this data if you reported the theft? They have found out somehow. It might be worth finding out what information CUE hold on you and who provided the information.

http://www.insurancedatabases.co.uk/default.aspx

On most insurances they do ask the question whether you have had any claims irrespective of if any loss was incurred to the insurer. You will have to decare this decliniture forever. unfortunately expect more expensive insurance premiums going forward. Many companies will no longer insure you.

I hope you get it sorted.

Quentin

Purse87 wrote: »

But the loss was mine, I took the cost not the insurance company so surely I'm even better to insure cos I won't bother goin through the insurance?! It cost me £2k to repair now I wish I just went through the insurance seeing as my renewal is now going to be double with the declined insurance part!!

And how they would have found out about it anyway I don't know? .......

The problem is that they don't ask who paid for the loss - they ask if you had any! (ie losses, not just "claims")

By saying "none", when in fact you had a £2k loss you made a false declaration.

rs65

spacey2012 wrote: »

I would serve them a deadlock notice and given the seriousness of the situation ask the FSA to investigate to mitigate losses.
They are liable for any losses they generate due to non performance of the contract and they can only withdraw the contract if you have broken one of the clauses.

What exactly is a deadlock notice?

dacouch

spacey2012 wrote: »

I would serve them a deadlock notice and given the seriousness of the situation ask the FSA to investigate to mitigate losses.
They are liable for any losses they generate due to non performance of the contract and they can only withdraw the contract if you have broken one of the clauses.

I think you mean the FOS.

Car Insurance is an annual contract hence the offer of a renewal for another year with no obligation on either side to renew the contract. How do you propose they sue for non performance of contract?

vaio

The OP says they had agreed the renewal and paid in full so the contract would appear to be in place

Quentin

spacey2012 wrote: »

I would serve them a deadlock notice and given the seriousness of the situation ask the FSA to investigate to mitigate losses......

This isn't the way to go about a complaint.

(And the fsa won't help anyway!)

To involve the FOS, you need to follow the insurers complaints procedure and if you are unhappy with their response to then escalate to the FOS. Their complaints procedure will be set out in the policy docs.

Bear in mind that if you go down the FOS route it will take months to get the final answer.