Diamond to cancel insurance policy?

dacouch

SimonSays wrote: »

Unless one of the key points of the policy is that "Policy will be cancelled in the event of a total. If the Vehicle becomes a total loss and we indemnify you under this policy it shall cease to be operative"

The Ombudsman says the following.

"17. outstanding premium instalments or premium refunds

Most motor insurance policies are yearly contracts – so the full premium is payable even if the vehicle is written off during the year. If the consumer paid the yearly premium upfront, they will not receive any refund. Or if the consumer was paying the yearly premium by monthly instalments, they must still pay the outstanding instalments after the vehicle is written off.

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. Depending on the make and model of the replacement vehicle, an additional premium may be required by the insurer. This should be calculated on a pro rata basis for the remainder of the policy term."

Quentin

emskyxx wrote: »

This is where I think I'll possibly fall down.
The policy says:
dition 10.

10 Total loss of your car
If your car is a total loss, all cover including the driving of other cars extension, if applicable, is cancelled for you and any other drivers on the policy. Once we make a payment to you, your car will become our property. We will deduct any outstanding premium and charges owed from any claim settlement we make to you.

You seem to be either "missing" the point of the advice you have been given or are deliberately prolonging this for whatever reason.


Get on to diamond now regarding that clause pointing out the FOS item you quoted in your OP - if they say they intend to adhere to it then get a complaint in now.

emskyxx

Quentin wrote: »

You seem to be either "missing" the point of the advice you have been given or are deliberately prolonging this for whatever reason.


Get on to diamond now regarding that clause pointing out the FOS item you quoted in your OP - if they say they intend to adhere to it then get a complaint in now.

I'm not purposely prolonging this, I just wanted to be absolutely sure I know what to say because I don't want to put my foot in it.

I apologise if it's coming across like I'm being difficult I'm just very new to all this.

I will call customer services in the morning and ask them, if they say it'll be cancelled then I'll quote what the ombudsman says.

Again I apologise, I am very grateful for everybody who has offered me advice.

dacouch

emskyxx wrote: »

I'm not purposely prolonging this, I just wanted to be absolutely sure I know what to say because I don't want to put my foot in it.

I apologise if it's coming across like I'm being difficult I'm just very new to all this.

I will call customer services in the morning and ask them, if they say it'll be cancelled then I'll quote what the ombudsman says.

Again I apologise, I am very grateful for everybody who has offered me advice.

You don't need to put your foot in it.

All you need to do is politely ask them if they will cover your replacement car, if they say no refer them to the Ombudsman link and if still no speak to someone more senior.

If you don't get the answer you want, you can call again at a different time of the day and speak to someone else (The level of insurance knowledge for call centre staff is pretty hit and miss).

If you still don't get the answer you send an official complaint etc etc.

Try just ringing them and if they say no come back and post here asking for advice on what they say.

emskyxx

dacouch wrote: »

You don't need to put your foot in it.

All you need to do is politely ask them if they will cover your replacement car, if they say no refer them to the Ombudsman link and if still no speak to someone more senior.

If you don't get the answer you want, you can call again at a different time of the day and speak to someone else (The level of insurance knowledge for call centre staff is pretty hit and miss).

If you still don't get the answer you send an official complaint etc etc.

Try just ringing them and if they say no come back and post here asking for advice on what they say.

I will do first thing in the morning. Thank you.

emskyxx

Just a quick update.

My car is a write off. Apparently there was over £3000 worth of damage which I'm absolutely stunned about

Re the insurance, it would appear I've been worrying for nothing.
I was told I can transfer a replacement car onto the policy for the remainder of the term, just to call customer services before buying the car to check whether it could have an impact on my premium.

As gutted as I am about my car, I'm relieved that I am able to put a replacement car onto the policy.

The could probably do with rewording point 10 in their policy documents as it read to me that the policy is cancelled end of.

Thank you everybody for all of your advice x

dacouch

emskyxx wrote: »

Just a quick update.

My car is a write off. Apparently there was over £3000 worth of damage which I'm absolutely stunned about

Re the insurance, it would appear I've been worrying for nothing.
I was told I can transfer a replacement car onto the policy for the remainder of the term, just to call customer services before buying the car to check whether it could have an impact on my premium.

As gutted as I am about my car, I'm relieved that I am able to put a replacement car onto the policy.

The could probably do with rewording point 10 in their policy documents as it read to me that the policy is cancelled end of.

Thank you everybody for all of your advice x

Their intention would have been to cancel policies for written off cars which used to be fairly common with Insurers.

Admiral / Diamond are the Ryan Air of car insurance.

They will have changed their stance due to challenges by customers due to the relatively recent change in the guidance from the Ombudsman expecting Insurers to transfer the replacement car onto the policy

dacouch

Read the rest of the link I provided previously from the Ombudsman as it explains how the Insurer should handle writing off the car and valuing your car.

It could be very helpful to you if you read the link a few times so you understand it

emskyxx

dacouch wrote: »

Read the rest of the link I provided previously from the Ombudsman as it explains how the Insurer should handle writing off the car and valuing your car.

It could be very helpful to you if you read the link a few times so you understand it

I will do thank you.
Unfortunately I've got to wait until I receive my log book before they'll make an offer which could be another 3 weeks or so.

SimonSays

dacouch wrote: »

The Ombudsman says the following.

"17. outstanding premium instalments or premium refunds

Most motor insurance policies are yearly contracts – so the full premium is payable even if the vehicle is written off during the year. If the consumer paid the yearly premium upfront, they will not receive any refund. Or if the consumer was paying the yearly premium by monthly instalments, they must still pay the outstanding instalments after the vehicle is written off.

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. Depending on the make and model of the replacement vehicle, an additional premium may be required by the insurer. This should be calculated on a pro rata basis for the remainder of the policy term."

Someone better tell Highway/Liverpool Victoria, Markerstudy and Zenith.

Oh and Provident Insurance.

They seem to have that clause and enforce it!

ERS will allow a COV until renewal then refuse cover under that policy number.