Retrospective payment for car insurance

Scmickles

My car insurance has recently expired; I have just changed provider because my old insurer's renewal quote was too high. I have therefore requested my no claims certificate from them to give to my new insurer.

When finalising the admin on my policy, my old insurer has discovered that I've not actually paid last year's policy. This is their fault: there was an administrative error at their end setting up the payment plan. I hadn't noticed that there weren't any payments going out during the year, assuming they were going on my credit card (the detail of which I don't keep track of too closely).

The insurer now wants me to pay for the policy retrospectively (although I should add that they are happy for me to pay in instalments). However, given that it was their mistake am I obliged to do so? Or could I legally refuse to pay? It seems somewhat perverse to pay for insurance retrospectively, when no claim has been made.

Has anyone had a similar experience? Any advice welcome.

huckster

As you know, Car Insurance is a legal requirement which you relied on them providing. You would have expected to pay the premium for the year. Your financial situation would have benefitted by them not collecting the premium.

Suggest that you negotiate a discount to reflect their mistake and arrange to pay over an agreed period. They could if they wanted to, take you to court and force you to pay. Failure to pay now, would be a breach of contract on your part.

dunstonh

However, given that it was their mistake am I obliged to do so?

Yes. You had the service provision supplied and you havent paid for that. As it currently stands, if you refuse, they can record it as a default on your credit file and do you far more damage.

It seems somewhat perverse to pay for insurance retrospectively, when no claim has been made.

No more perverse than you thinking you should not pay for a service provided.

I would go with huckster on this and agree a payment plan with a reduction for the inconvenience.

27col

There may have been no claim made. But, nevertheless, insurance cover was provided. So you are liable to pay the premium.

Smithers37

Scmickles wrote: »

It seems somewhat perverse to pay for insurance retrospectively, when no claim has been made.

No doubt you would have taken issue if your insurer had said the same thing if the shoe was on the other foot.

It seems somewhat perverse to pay out for a claim, when no premium has been paid

The fact is, you were insured and it's only fair that you should pay for it.

chanz4

they could also void it, causing you high insurance costs

Quentin

chanz4 wrote: »

they could also void it, causing you high insurance costs

Why would they "void" an expired policy?


This is just scaremongering.


They may well pursue the debt though, with all the possible consequences on credit records etc, and they may play hardball over issuing a proof of NCD.

magpiecottage

Smithers37 wrote: »

The fact is, you were insured and it's only fair that you should pay for it.

The fact is the OP is still insured. If they are identified as having been responsible for harm to somebody else during the period of insurance they have up to three years from the incident to make a claim.

If they negligently damaged somebody else's property they have up to six years from the date of the negligent act or, if longer, three years from when they ought reasonably to have become aware of the loss, to make a claim against the OP.

thenudeone

You entered into a legally binding a contract to buy an agreed service for an agreed price.
The agreed service was provided - the insurance company issued a certificate and took the agreed liability.
You haven't yet paid for it.

What grounds do you think exist which might enable you to win a legal case, if the insurance company decide lodge a county court claim against you for the premium?