Car insurance policy accidentally cancelled by insurer. Where do I stand?

dsgalpin

Ok it's a long story, but I really need some advice here as to where I stand........
I've just turned 25 a couple of days ago (a big milestone in car insurance ages!) my policy renewal date is in June. I currently drive a new vauxhall insignia (a massive car for a 24 year old) needless to say by insurance has always been sky high due to my need for large cars. It's always been a price I've been willing to accept. However, upon turning 25 I thought id have a play about at getting new quotes to see if it would be cost effective for me to lose 6 months no claims and start a new policy as a 25 year old, therefore getting the benefits straight away and not having to wait until renewal.

My first step was to contact my current insurer. Tesco. To see where I stand with regards to cancellation fees and if I still owe them money etc (I pay for my insurance monthly) as this could mean it will be more cost effective for me to just see the year through.
At the time of my call, I was sat at a computer ready to click 'buy now' to a policy which despite losing the 6 months no claims I had built up since June, it was £1000 cheaper than my current policy.

To my surprise the advisor told me my account was in credit and after deducting the £30 cancellation fee, I was due a refund of £125!
Great I thought! This was followed by a general bit of chit chat. Me asking when/how this credit would be returned to me, as this was pretty much the exact amount needed to pay the deposit on my new policy. The advisor then said 'oops I've got my credits and debits mixed up. You owe us £125! I explained if that's the case. Done cancel it then as it would mean me spending £250 on insurance this month. Something I cannot afford so soon after christmas.

To my horror....... The advisors 'finger slipped' he cancelled my policy against my request. What started as a 5 minute enquiry led me to no insurance. He explained now he's done it it was irreversible. I also had to be at work within the hour and was now without car insurance. The only resolution he offered was that he could give me a new quote to start a new policy with them (not something I wished to do after this error, and the new price they had quoted me online was not very competitive) I was backed into a corner as I needed insurance.

I have since purchased another policy from another insurer. I am unable to complain to tesco directly. My 'complaint' was passed on from the advisor who cancelled my policy and I have no idea by what means. Someone will call me back in 8 weeks was his reply. To me this is far too long to wait.

I have tried asking them to speak directly to their underwriters and write me a 'unique' policy that pretty much picks up just where I left off, paying the same monthly fee and finishing and awarding me my 8 years no claims in June. This was not a possibility they were willing to discuss.

As far as I am concerned now, the policy was cancelled on the terms I would be getting a refund of £125. When I learnt this was not the case I instructed them not to. They acted against my wishes and now I am out of pocket after having to buy a new policy, in addition to losing 6 months of no claims, which will effect my renewal price for years to come. There is a recorded phone conversation of him informing me this!

Where do I now stand for getting this money back or what sort of reasonable resolution are tesco likely to offer me once their complaints team decide to get back to me (life would be so much easier if I was able to just contact them myself!)

Any advice would be greatly appreciated.

Thanks

Quentin

The 8 weeks they have quoted you for a reply is all in accordance with the rules.

Assuming you have made a formal complaint, (if you are not sure, make sure by sending them a formal complaint in line with their complaints procedure which will be set out in your policy docs), then if they don't reply within 8 weeks or you're unhappy with the reply you can then escalate to the FOS for their adjudication at no cost to you.

Ask them to reimburse all the extra cost their mistake has caused you (including not getting the years ncd you would have received had you held the policy for the full year).

rs65

Are you not still better off over the next 6/12 months? You were prepared to lose the 6 months NCD.

You have a short term problem of £125 so that sounds reasonable recompense for the inconvenience.

dsgalpin

Right now I'm worse off as I've had to pay £125 as a deposit for a new policy in addition to £125 I owe to tesco. (My monthly payments are normally £108) for the next 6 months I'm better off as my payments are now only £60 a month. However by June when I will technical have 8 years no claims I will be £x worse off as I now have to wait until December to renew, and this will be the case for years to come as it's effectively taken me 18 months to earn one year.

In addition to this I'm angry because they acted against my wishes, an irreversible act. Left me with no insurance on my vehicle at all. Surely they can't do this? I understand if I had somehow invalidated the policy. Which I had not. I really hope the guy who did this gets in serious trouble at work!

In addition to this, I'm angry because they seem to be doing everything they possibly can to prevent me from speaking to any member of the complaints team and they are taking it far too lightly for my liking!

System

dsgalpin wrote: »

In addition to this, I'm angry because they seem to be doing everything they possibly can to prevent me from speaking to any member of the complaints team and they are taking it far too lightly for my liking!

It sounds appalling action. Furthermore you now have on your record that you have had your insurance cancelled.

rs65

Send a written complaint. What does your policy say about making a complaint.

The difference in cost between 7/8/9 years NCD will be very little with most insurers.

Each future renewal will be closer to your birthday so the saving made turning 25 will benefit you at future birthdays also.

They didn't act against your wishes, they made a mistake.

nobbysn*ts

Clifford_Pope wrote: »

It sounds appalling action. Furthermore you now have on your record that you have had your insurance cancelled.

Ignore this. You rang them, to discuss cancellation, they acted on your request, up to the very end by pushing the button, (albeit accidently). It will be on the system as cancelled at your request and doesn't need to be declared. They should refund all your costs to reintsate your required insurance.

SammenForLivet2

I'm sorry to hear of the circumstances described.

However, in terms of taking too long to answer complaints, they do have 8 weeks, and although you want to speak to them, it may be best to make sure things are in writing.
Once the 8 weeks have surpassed, you will either be sent a letter saying you can go-to the ombudsman or a final response with the opportunity to go-to the ombudsman.

Filip

dsgalpin wrote: »

I really hope the guy who did this gets in serious trouble at work!

Yes, let's all hope he gets in serious trouble, loses his job, his home, his family, his life because he made a MISTAKE that cost someone £125!

dsgalpin

Spoken to tesco. They have agreed to write off the £125 I owe them. However as far as I'm concerned I am still at a loss as I have had to pay out more for the deposit on my new policy. Tesco will not refund this as previously agreed, nor will they do anything to rectify my loss of no claims. I have now escalated it to the omberdsman.

As for the guy responsible facing consequences. I do not mean dismissal. But some sort of formality to ensure he understands the effects of his actions and how this is absolutely not acceptable!

magpiecottage

I don't think the error by the individual is the core problem. We all make mistakes.

The problem is the idiot who put in a system that did not allow errors to be corrected.