Direct Line cancels insurance, in fear of a big debt arising

cocobrice

I appeal for help from anyone that know of a better way out of this would be appreciated.

It just seems unfair that a big insurance corporation like Direct Line can easily avoid responsibility, find a way out to avoid paying when one is need, but sells promises so easy and take the money on a regular basis for something that can evaporate.

Had an old Toyota Corolla M reg. that kept on running and serving the family for the past 8 years. Recently involved a 5 car concertina collision, that put the car beyond economical repair. Had a fully Comp insurance with Direct Line. And still held partially responsible for hitting the car at front first before being hit at back.

After engineer inspection discovered an undisclosed modification - strut brace (see: en.wikipedia.org/wiki/Strut_bar), that I've purchased and installed 6-7 years ago. At the time the insurer did not acknowledge the part as a modification.

Over the time I had completely forgotten about its existence and missed declaring it when I had a new insurance with Direct Line.

What I am really struggling with is the decision from Direct Line to cancel my insurance, not willing to show understanding to the fact that I had omitted by error rather than intentionally and completely forgotten of the existence of a part that was found on Halfords reduced items shelf for £10-15 so long ago and did not come with any warnings or any indication that may invalidate or affect my insurance premium and was not considered a modification earlier.

Since the time the part was, insurers have changed the rules and now saying that they would have not insured me in the first place had been aware of the existence of the part.

What was worse I was ran through a deceiving complaints procedures with Direct Line against stating my will to take legal advice and write back in order to defend. Never given a chance but just told that since I have expressed discontent over the phone that was taken as complaint the decision reviewed and pointed to Financial Ombudsman Service as next step.

But the worst is yet to come since they avoiding my calls or just promising to keep me upto date with the third party claims process but have not sent any information in relation to this despite my requests.

I was prompted that the insurer may be looking to transfer the costs of third parties on to me later once the case is concluded. This would have devastating effect on the family finances with 5 year old and 5 month old baby and wife in maternity.

The cancellation so far a big toll on its own already. I was denied insurance by 6-7 insurers before finding LV who insured me for around £1400 - nearly 3 times the premium I had previously with 8 years NCD and licence since 1993, no other convictions or points ever.

Quentin

Your poll won't help whatever its outcome. All you can do is escalate this to the fos as they have advised you. If your appeal gets rejected you can take this to court but it would mean costs, which you could only get back were you to win. Were you to lose in court you would also have to pay the defendant's expenses and allowable costs.

The fos is no cost to you whatever the decision.

If the decision is upheld you will be liable for any third party payments they have made on your behalf.

Better news is that you can still claim off the liable third party who rear ended you. You will need to do this direct to the third party or their insurers.

(Assuming your NCD was unprotected, you could still have 3 years to use if you can get proof off DL, but you do normally have to disclose a voided/cancelled policy to all insurers you approach for cover for evermore, meaning you will face higher premiums - LV look to be the exception over this!)

mattyprice4004

At the end of the day it was an undisclosed modification however you look at it - as it wasn't originally fitted to the car it would have been a good idea to mention it each year as you renewed so they had it on file.

TrickyWicky

cocobrice wrote: »

After engineer inspection discovered an undisclosed modification - strut brace (see: en.wikipedia.org/wiki/Strut_bar), that I've purchased and installed 6-7 years ago. At the time the insurer did not acknowledge the part as a modification.

Are you saying that you told them about it in the first place? If you did then you should take this all the way to the FSA. If you didn't, read on.

cocobrice wrote: »

Over the time I had completely forgotten about its existence and missed declaring it when I had a new insurance with Direct Line.

Now it sounds like you never told them at all.

cocobrice wrote: »

The cancellation so far a big toll on its own already. I was denied insurance by 6-7 insurers before finding LV who insured me for around £1400 - nearly 3 times the premium I had previously with 8 years NCD and licence since 1993, no other convictions or points ever.

What do you expect? As far as they're all concerned you're an insurance fraud risk. As far as DL are concerned, it isn't much of a troll really. In their eyes you didn't tell them about your boy racer modification and have probably been hammering around town risking their money.

Direct Line EXPLITICLY ask you at renewal time "Has there been any changes or modifications to the vehicle". You have clearly explicitly stated "No" in order to get your renewal each year.

Now the only thing here is whether or not you did originally declare this change. If you did, you could argue that each year you understood that they would continue to take this modification into account. It's very weak ground you're standing on with this though and if you've never rung in to question why they never acknowledged it then there will be no record of you pursuing this.

As for complaining, when you've got them over a barrel they're hard enough to get an answer out of. If you're in the wrong (as you are) then you're going to have a very tough battle ahead of you getting any form of reply.

The only thing you should be grateful for is that they cannot make 3rd party insurance conditional. That means when they cancelled your policy they can't avoid paying out on 3rd party damage so at least you can't get busted by the fuzz for it (though they may try so you'll have to be smart).

I have a neighbour like you, he's modded his car to the T. Super brakes, performance air filter, lowered suspension etc.. he'll be fine until the day he makes a claim and then his insurance will sky rocket through the roof :rotfl:

Quentin

TrickyWicky wrote: »

....The only thing you should be grateful for is that they cannot make 3rd party insurance conditional. That means when they cancelled your policy they can't avoid paying out on 3rd party damage ........

This is little consolation.

Assuming the voided policy decision is upheld, then although the third party claim will be dealt with, the insurer will then come after the OP to reimburse them.

Stooby2

You have to be extremely careful with insurers if you have a modified vehicle. Did they send you a new proposal form each year on renewal, or just continue the old insurance? If they did send a new form and it stated "No modifications" you're pretty much screwed as you should check that form carefully before renewing. It's no use saying "I was too busy" or "I didn't realise" etc.

You will have to go to the Ombudsman, you don't have a lot of choice now.

Lum

How the hell do you forget about a strut brace? Do you literally never open the bonnet of your car?



Unfortunately you probably won't be getting out of this one. Insurers will do anything to get out of paying and what we have here is a very obvious undisclosed mod plus you drove into the back of a car.

You might be able to argue that this particular mod had no effect on whether or not you crashed into the car, and so get them to pay out for the repairs (I wouldn't put money on it though) but they're well within their rights to cancel your policy for the undisclosed mod.


Sorry, I'm not usually this harsh, but you're pretty much screwed here.

Crabman

Doesn't seem like the recently introduced insurance reforms will help here as they don't seem to be retrospective (someone correct me if I'm wrong).

Insurers are no longer able to reject complaints because of a fact that is irrelevant to a claim:

http://www.moneysavingexpert.com/news/insurance/2013/04/consumers-protected-as-insurance-law-reform-begins

jobdone1

Lets say a 10% increase in premium for the mod on your car to your insurance is little fry especially now you are in the class of insurance declined and refused. It beggars belief when people mod cars and some how forgets to remembers this on disclosure at time of renewal. I think you are out on a lim on this one i'm affraid.

cocobrice

Thank you for the quick response everyone.

@TrickyWicky and @Stooby2 on your question I was not a Direct Line customer all that time and I do not recall the exact insurer I was with that the time they accepted it.

Could be the acceptance at the time simply had me loosing focus on that with the time. I had really forgotten about it. The car has also been regularly serviced and MOT-ed etc. and no one in fact had hinted me the slightest that could have such impact. I would have happily removed, had I realised what it can result in. It also was something that was bought in the shop, had no warnings, no disclaimer, no any sign in advice it may affect insurance. I still have the instructions.

The other point I came across, there is no real technical backing that this alone has any significant effect, some state its just a placebo effect (Googling it). I told it was more of a cosmetic kind of thing on a basic 1.3l engine with no other modifications. Besides the car for the past 5 years has been mainly used by my wife for school runs and me on weekly shopping and the odd family trip to friends and family. But not in any way "...been hammering around town risking their money."

The other point made in the above comments is that it did not impair me from driving, I did not made it more dangerous for me or others on the road. It does not affect braking, speed etc. It did not contribute to the accident in any way.

In a way, it could be considered to contribute to safety... May manufacturers seem to be implementing it in a slightly different form nowadays. Connecting the two top suspension points with the engine fire plate, if you look at any recent model car...

Any way, every one has a valid point here. I just feel that it is not a fair and it is a very harsh punishment in my view for what it is. It scars you for life and will have huge impact for the family in near future simply because Insurers can easily avoid paying and will do anything to do so. I wish I could serve some sentence on my own but don't see this possible.

This is why I posted here to try and get public opinion and I am happy to have people engaged in discussion so far.

Regards,

cocobrice

Stooby2 wrote: »

You have to be extremely careful with insurers if you have a modified vehicle. Did they send you a new proposal form each year on renewal, or just continue the old insurance? If they did send a new form and it stated "No modifications" you're pretty much screwed as you should check that form carefully before renewing. It's no use saying "I was too busy" or "I didn't realise" etc.

You will have to go to the Ombudsman, you don't have a lot of choice now.

TrickyWicky wrote: »

Are you saying that you told them about it in the first place? If you did then you should take this all the way to the FSA. If you didn't, read on.

Now it sounds like you never told them at all.

What do you expect? As far as they're all concerned you're an insurance fraud risk. As far as DL are concerned, it isn't much of a troll really. In their eyes you didn't tell them about your boy racer modification and have probably been hammering around town risking their money.

Direct Line EXPLITICLY ask you at renewal time "Has there been any changes or modifications to the vehicle". You have clearly explicitly stated "No" in order to get your renewal each year.

...

The only thing you should be grateful for is that they cannot make 3rd party insurance conditional. That means when they cancelled your policy they can't avoid paying out on 3rd party damage so at least you can't get busted by the fuzz for it (though they may try so you'll have to be smart).

...

Quotes were referenced in my early reply.