Can car insurance cancel my insurance after a total loss?

hankkosovo

Thanks for all the replies, and just a quick update.

The letter stating the 14 days time frame arrived 6 days after it was dated, so I had 9 days to buy a new car. It is not in the policy at all, I have spoke to them over the phone and they too have told me it is not in the policy, but it is standard practice (whatever that means) so there is nothing they can do. They also will not extend the time frame.

Also I am unable to just apply the policy to a friends or relatives car as my insurance states I have to be the registered keeper.

I don't mind them cancelling it as long as I get a refund, and I don't mind not getting a refund as long as I still have my insurance, but what they are doing is unreasonable, and they are effectively stealing £500 from me.

I've spoke to the financial ombudsman and they have said the only thing they can do is file a complain.

Does anyone know how the insurance can legally do this?

lisyloo

Does anyone know how the insurance can legally do this?

The way the law works in the UK is that you have to prove them wrong.
You can do this for free (but slow) via their complaints procedure and the Ombudsman,
Or you can take legal action yourself - do you have any legal insurance for consumer disputes that might cover you? Perhaps on your household insurance?

I would be personally wondering why no-one has done this before, so I'd be researching for test cases before spending any money.

Out of interest what is stopping you going out to look for another car?
Or are you in process of doing that and not been successful?

I think in your shoes I'd be prioritising the search. I'm not saying you should be pressurised into buying the wrong thing, but I think I would have priortised it.

noh

Link to the FOS words on the subject
http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#17

hankkosovo

lisyloo wrote: »

The way the law works in the UK is that you have to prove them wrong.
You can do this for free (but slow) via their complaints procedure and the Ombudsman,
Or you can take legal action yourself - do you have any legal insurance for consumer disputes that might cover you? Perhaps on your household insurance?

I would be personally wondering why no-one has done this before, so I'd be researching for test cases before spending any money.

Out of interest what is stopping you going out to look for another car?
Or are you in process of doing that and not been successful?

I think in your shoes I'd be prioritising the search. I'm not saying you should be pressurised into buying the wrong thing, but I think I would have priortised it.

Thanks for your reply. No I don't have legal insurance or anything like that unfortunately.

I had a quick search before starting this thread but couldn't find any instances of it happening before, I'll need to search more tbh.

I have been looking for a new one, but it took me about a month to find my last one. Normally I would be prioritising the search, but a few days after the crash my dad got diagnosed with cancer, a few days after that I began having a lot of problems with our rental accommodation, and I'm in the process of buying a house so finding a car is the bottom of the list really. Also, at the end of day, I can only buy what is for sale and if what I want isn't for sale then theres not much I can do. I'm not going to be rushed in to buying anything, thats the opposite of money saving!

vaio

hankkosovo wrote: »

........The letter stating the 14 days time frame arrived 6 days after it was dated, so I had 9 days to buy a new car. It is not in the policy at all, I have spoke to them over the phone and they too have told me it is not in the policy, but it is standard practice (whatever that means) so there is nothing they can do. They also will not extend the time frame.......

Given that & the FOS view

....When an insurer declares a vehicle a write-off, we expect it to offer a consumer the option of bringing a replacement vehicle onto the insurance policy so that the remainder of the policy term can be used.......

I'd lodge a complaint that you are being treated unfairly and refer to the FOS if they don't play ball. I'd say a month is a reasonable amount of time to source a replacement car particularly if it's something a bit unusual.

I would get your finger out and start seriously looking though.

hankkosovo

vaio wrote: »

Given that & the FOS view

I'd lodge a complaint that you are being treated unfairly and refer to the FOS if they don't play ball. I'd say a month is a reasonable amount of time to source a replacement car particularly if it's something a bit unusual.

I would get your finger out and start seriously looking though.

Thanks, you've been really helpful

lisyloo

I'd lodge a formal complaint too.
It looks like you aren't entitled to a refund but you can put another car on, so the argument hinges around whether 14 days is reasonable.
For someone in full time employment I'd say not - and as you say a lot of other things can get in the way not to mention the actual buying process.

State politely but assertively what you think is unfair and what you want them to do about it.

However do be aware that it may be 8 weeks before you can go to the FOS and then it might be months before you even get a caseworker assigned at the FOS, so even if you win, you could be looking at a long timescale.

Although you're busy I'd try to get it done ASAP because the process won't start until they receive your letter. I'd email the letter.

flubberyzing

I crashed and wrote off my car on the 2nd November. It was my fault (I mis-understood who had right of way). I have now bought a new car - 18 days post accident and have put my new car onto my policy.


I was told that if I didn't wish to buy a new car right away, I could "put the policy on hold", which I was led to understand that you still have a policy, but it's not actually active. But as soon as I did buy a new car, the policy could be re-activated again.


When I did phone them up to put the new car onto my policy, it cost me £7 to cover the difference between the two cars (same type, just different age), and they've sent me a new insurance certificate with the new cars details on, and my usual expiry date.


Could putting your policy on hold be an option?

roonaldo

hankkosovo wrote: »

I don't mind them cancelling it as long as I get a refund, and I don't mind not getting a refund as long as I still have my insurance, but what they are doing is unreasonable, and they are effectively stealing £500 from me.

Actually no, its proven to be fit for purpose. You cannot take out a policy, claim total loss and then expect a refund.

dzug1

rs65 wrote: »

The word 'auto' suggests that is american.
.

Yes it is an American site - takes a bit of hunting around to confirm it positively, but it is.