Insurance company has cancelled my car insurance and is now demanding payment.

dcc251

I have a classic car which was insured through Lancaster Insurance brokers, with the policy directly coming from Chaucer. To cut a long and very boring story short, my car has been resprayed and renovated over the last 3 months (longer than was expected). When my insurance company found out that it was being resprayed they began 'hassling' me, sending me demands for an engineers report within a week and threatening to cancel my cover. This has continued over the last 2 months, almost every week, despite them being told by myself that the car has not been completed yet. Last week they cancelled the insurance due to the non-arrival of the 'engineers' report and sent me a bill for £107.77 for the 'costs'. As below. Do they have the right to do this? I had paid all of my monthly premiums on time and the car is still being worked on, so an engineers report cannot be done...

The agreed valuation was never taken out, nor was the car ever driven while on the policy. I also refused 'legal benefits' when offered them.

Time on risk premium to insurer £42.40
Policy Fee £15.00
Agreed Value £15.00
Legal Benefits £25.00
Breakdown cover £39.95
Cancellation administration fee £30.00

TOTAL Charge £167.35
Less paid £59.58

Balance due £107.77.

Any answers/ help would be greatly appreciated.

spacey2012

How did they "find out" it was been re-sprayed, crystal ball or big mouth ?

dcc251

They asked me for the mileage to update records at the beginning of the policy. I told them that I couldn't give it to them that day as the dashboard had been removed to be resprayed.

forgotmyname

Why an engineers report for a respray? Or have you changed/upgraded the mechanicals also?

What state is the car in? Is it a pile of bits or an actual working car?

dcc251

That was my point! I did have some welding done on the rear apron, swapped the doors for new ones and had new wings put on. As anyone knows though - a muppet could do that quite competently on a VW Beetle (remove bolts, change wing/ door, screw bolts back up). My annoyance is more that they refused to wait until the car was completed and cancelled the insurance.
I now, incurring extra cost, will always have to tick that box that says "Have you ever had car insurance cancelled or conditions put on."
Most of all however, I'm just REALLY annoyed at their demand for payment for services I have not used.
The car is in absolutely excellent condition mechanically and otherwise; NO rust, passed every MOT for 10 years with no advisories, ALL original parts etc etc. I just wanted little bits putting perfect while it was being resprayed.

Immers7

They are well in the rights to do what they are doing.

Why did you take out insurance on a vehicle which was off the road?

vaio

to protect against loss or damage?

NewFolder

Did you explain that the car was in the process of being rebuilt when they asked you for the engineers report? What exactly did they say when you told them?

dcc251

@Immers7

Why are they within their rights? Please explain this, as I cannot understand why having your car resprayed would annul the insurance.

dcc251

@Newfolder

It's not being rebuilt; it's just being resprayed.

vaio

complain with a view to getting it all undone and refer to the FOS if they don't play ball