Advice on car insurance, please.

JA5502

Three months ago, I initiated a car insurance policy, gave all my bank details and sent the requested documents.
I was emailed to say a deposit had been taken, and that no further documents were needed.

Last week, I checked with my bank to ask on what date my DD was being paid, and was informed that no payments had been collected from my account, not even the deposit.

I emailed the company three times before I got a response.
Somebody from the financial department called me yesterday and informed me that for some reason there had been an error on their part.
She then, basically, told me that I would have to pay the deposit and make up the shortfall with increased monthly payments.

When I complained that for the last three months I had been without insurance, she informed me that they would have paid out on any claims.
I find this very unlikely, given what I have read about insurance companies using any excuse not to pay. I can't imagine they wouldn't have used the fact that no money had been taken to squash any claim.

What are my options?
Am I beholden to this company?
Can I tell them I won't be paying for insurance I don't believe they would have honoured, and that I will start a new policy from this date, or take my business elsewhere, due to their incompetence.

Please, could anyone advise, thank you.

dacouch

The Insurers would have been legally obliged to pay any claims.

You have a Certificate of Insurance which is a legal document confirming the Insurers will honour any third party claims which they're legally obliged to do until you or they cancel the cover or the policy runs out.

expatreturning

dacouch wrote: »

The Insurers would have been legally obliged to pay any claims.

You have a Certificate of Insurance which is a legal document confirming the Insurers will honour any third party claims which they're legally obliged to do until you or they cancel the cover or the policy runs out.

"until they cancel the cover".

if not a single payment was ever received, as the OP says, then surely the insurer is likely to have cancelled the cover? otherwise cynical chavs would arrange insurance, and then cancel the Direct Debit and still remain insured.

also, I don't think the OP mentioned receiving a Certificate of Insurance; often they will only send a cover note. when I have paid by DD instalments in the past, they have refused to provide the Certificate until payment in full had been received. I even had one company who refused to issue a cover note until full payment! (although they agreed to do so when I complained)

rs65

expatreturning wrote: »

then surely the insurer is likely to have cancelled the cover?

Thats irrelevant. they didn't cancel cover so they would have honoured claims.

JA5502

Ok, thank you.

Yes, I did receive a certificate so I understand that legally they can claim to have been providing cover, what may have happened in the event of a claim is irrelevant.

So, am I to take it that I am legally tied in to make up the shortfall?

The fact is that their negligence will put me in financial difficulties as I cannot budget for increased payments.

rs65

Yes you are obliged to pay but may get a few quid off as a gesture.

Smithers37

JA5502 wrote: »

So, am I to take it that I am legally tied in to make up the shortfall?

What would make you think that you wouldn't have to pay for what you've been provided with?

expatreturning

Smithers37 wrote: »

What would make you think that you wouldn't have to pay for what you've been provided with?

I thought he made that clear in the original post: the fact that if he had claimed during that period, his concern that the insurance company would have used "non-payment" as an excuse to invalidate his insurance.

Have to say that I agree with him, having seen insurance companies refuse to payout on the basis of a single missed direct debit - let alone not having received a single penny from a customer.

JA5502

Thanks again.

Smithers37, did expatreturning clear that up for you?

Or were you hoping to begin a thread on Moral Relativism?

bouncydog1

JA5502 wrote: »

The fact is that their negligence will put me in financial difficulties as I cannot budget for increased payments.

But they didn't take the first few payments so what has happened to the money? Assuming you have spent it, that's hardly the insurer's fult.

JA5502

bouncydog1 wrote: »

But they didn't take the first few payments so what has happened to the money? Assuming you have spent it, that's hardly the insurer's fult.

I think this reasoning is a fallacy of relevance, but I thank you for contributing.