Car insurance and being forced to cancel policy

scottien

Hi guys,

some info before: My car has been written off due to an accident last month. The fault of the claim has not been resolved yet as it is not a simple claim, I have 4 witnesses on my side so it should go in my favour.

I'm aware that in my t&cs if I cancel a policy whilst a claim is ongoing then I have to pay all of the remaining costs on the policy. However, nowhere in my policy documents does it advise me that there is a maximum vehicle cost that they will insure.

I have bought a new car £32k which they are telling me that they will not insure using the same underwriter as it is worth too much money, they're telling me therefore that I need to cancel my insurance policy at a cost of £325.60 to take out a new policy with someone that will cover that car.


To be clear it's the car not me that they wont cover. Is it legal for them to force me to pay for usual cancellation costs when I don't actually want to cancel the policy I just want to change my vehicle?

Retrogamer

When you took out the policy the agreement would have involved the car you were insuring, the amount being paid and other T&C's

As you are now wanting to change the vehicle, you are changing the initial agreement.

It's not ideal what they're doing, but i don't think you have any rights in regards to it.

scottien

Retrogamer wrote: »

When you took out the policy the agreement would have involved the car you were insuring, the amount being paid and other T&C's

As you are now wanting to change the vehicle, you are changing the initial agreement.

It's not ideal what they're doing, but i don't think you have any rights in regards to it.

Thanks for your answer that's what I expected I think. If I was to tell them that the car was £30k when I bought it for £32k, would that cause me any issues in the long run?

It's not an agreed value policy and in theory they should pay out based on market value. The vehicle has a lot of extras on it which have bumped it over 30k. I also have gap insurance so I guess it doesn't really matter?

forgotmyname

Depends what their system comes up with as the true value.

If it says over £30k then they wont cover it if you tell them 50p.

I dont think the GAP will cover the shortfall if you under declare the value to your insurer also.

Do they ask about all those extra's? One insurer asked me if my car had any factory fitted options, OK on a new car that i had ordered but on a 5 years old 2nd hand car? How many people will know that?

rs65

scottien wrote: »

nowhere in my policy documents does it advise me that there is a maximum vehicle cost that they will insure.

The policy won't list any acceptance criteria. The only way to establish this is to ask for a quote before you order the car

scottien wrote: »

I have bought a new car £32k which they are telling me that they will not insure using the same underwriter as it is worth too much money

If £30k is their limit, don't lie to them. You would be obtaining cover from them by lying when they wouldn't provide cover had they known. Not the position you want to be in, in the event of a claim.

scottien wrote: »

If I was to tell them that the car was £30k when I bought it for £32k, would that cause me any issues in the long run?

Yes, as above in the event of a claim. Plus, you have already approached them so you could end up with a cancelled policy on your record.

scottien wrote: »

It's not an agreed value policy and in theory they should pay out based on market value. The vehicle has a lot of extras on it which have bumped it over 30k.

I assume this is a new car. If you have replacement vehicle benefit, would you be happy with a lower spec'd car. If there is finance involved would they be happy.

scottien wrote: »

I also have gap insurance so I guess it doesn't really matter?

You can't just choose what to accept from your insurer and expect gap insurance to fund the difference.