Car insurance cancelled by insurer - advice please

skeggysteve

I took out car insurance with More Than last October, for myself, Wife and 19 year old Son as drivers.

I rang them today (putting a different number plate on the car) and they told me that they would be cancelling the policy in seven days as they don't insure 19 year olds on a group 14 car.

I asked why they had issued the policy in the first place and they said it was an error on their website, but I did it over the phone, doesn't matter we are cancelling it.

Why haven't you cancelled it before? Because you have not contacted us.

Can they do this?

Will it effect future insurance as they all ask if you've have had insurance refused or cancelled?

Thanks in advance,
Steve

PS. They did say they wouldn't charge me a cancellation fee!

olly300

According to More Than website they insure young drivers and their advertised policy doesn't specifically exclude any car groups.

So while they are entitled to put your premium up to £3000 or some ridiculous level to discourage you taking the policy out with them due to the "Unfair terms in consumer regulations" legislation they are are not allowed to cancel your policy for this reason or refuse you cover.

If the facts are as you clearly stated I suggest you write them a letter of complaint (Title "Formal complaint" ) pointing out to them:
1. The unfair terms in consumer regulations legislation meaning they can't just change a contract or cancel a contract when it suits them.
2. That you did not provide inaccurate or misleading information as you did the policy over the telephone not on the web as they stated in telephone call of xx date and xx time.
3. Due to their actions your quotes will be more expensive (print out more quotes and keep them)

Finally tell them you will take the matter further. If you get no joy after 2 months or they refuse to acknowledge your complaint, make a formal complaint to the financial ombudsmen.

DON'T complain over the phone as if you have to take it further than you have no evidence and you will not be able to take the matter to financial ombudsman if you haven't written a letter.

BTW I have been reading financial ombudsmen news this afternoon.

skeggysteve

Olly,
Many thanks for that.

I shall be complaining so you info is very useful especially the "Unfair terms in consumer regulations" .

Checking the paperwork I have from them it states, that I must read and check that the details are correct, which they are.
So didn't read it as well?

Just as an aside, does it matter if you entered into a contract (in this case car insurance) via a website? Wonder what the law is about that.

Steve

mattymoo

Quick question for you.
Is the new plate for the car a personalised plate and if so, is it related to your son in some way (perhaps a variant on his name)?
If so, you may have rang an alarm bell in their heads - your son is the main driver. Then it would relate to how you set the policy up. If the car is your sons but you insured in your name to get a lower premium, they will treat that as fraud (do a search for "fronting" on this forum) and cancel the policy.

If the above is not relevant then I do not really know what they are playing at but you do need to sort it because all future insurers will ask "have you ever had an insurance policy cancelled?" You will need to answer yes because the person asking will already know More Than cancelled - insurers share info like this via the CUE database. It is therefore vital you find out the true reason for cancellation.

skeggysteve

Mattymoo,

Nothing to do with the plate, car is mine and Son is at Uni. All info on policy and schedule is correct. But I appreciate your point!

I am very concerned about the cost implications of 'having insurance cancelled'.

Steve

dunstonh

and its usually "have you ever had insurance cancelled" so it will stay with you for life.