cancelled car insurance policy

lisac999

Hi, really need some advice please - I'll try and cut a fairly long story short.....

I was made redundant at the end of August and, as I had been at the company for 20 years, they offered to buy me a car as a kind of leaving present. The suggestion was also made that they would help me out with the insurance. As I had an old primera costing me £90 per month, this was very welcome! So once I'd left, I cancelled all direct debits etc that I considered un-necessary as I knew that at the end of September I wouldn't have a salary. This (ok - stupidly) included my car insurance as I assumed that by the end of September I'd have a new car and wouldn't be making any insurance payments. So... At the end of September, the insurance company tried to take their dd and obviously couldn't, then wrote to me giving me a deadline to pay, which (again, stupidly) I didn't. At this point I still didn't have the new car so I called them and tried to explain the circumstances, but they said that they had now cancelled the policy and would not re-insure me on a pay monthly basis. In addition i had to pay the remainder of the premium, even though this did not actually make me insured!! I then had to find another company that would insure me, which, as I now had to answer yes to the "have you ever had a policy cancelled" question, classed me as high risk. So for a group 8 car, I'm now paying £125 per month, and I'm not working! This is the new car by the way, which I now have. I've got quotes for other cars, less valuable/higher insurance group and they are all coming out about the same, so its definitely because of the cancelled policy. How long do I have to answer "yes" for? What would happen if I didn't say "yes"? Would I get found out? Any advice appreciated, I can't believe I'm stuck with this forever because of one missed payment. By the way, I'm 42, 4 years ncd, and now a carer for my autistic son. Thanks!!

forgotmyname

You need to declare it for as long as they ask, presently that seems to be forever.

Have you ever had a policy cancelled or special terms imposed**

If you say no then you risk the new insurer cancelling your policy and then it maybe impossible to get insurance if they put it down to fraud.

lisac999

Ok thanks, kind of what I thought but was hoping there might have been a way round it. It seems to be a common question, particularly on the comparison websites. Its a very expensive lesson for missing one payment.

Retrogamer

It sounds more a case of refusing to make any further payments, than simply missing one.

lisac999

Not at all! I didn't refuse, I missed one payment and the policy was then cancelled by the insurer, even when I paid the remainder of the premium in full!

cajef

Unfortunately cancelling the direct debits does not cancel the contract, you should always contact the companies to cancel before doing the DD's.

lisac999

Yes I realise that now ☹ looks like I'm stuck with saying yes for another 5 years then ☹

takman

lisac999 wrote: »

Not at all! I didn't refuse, I missed one payment and the policy was then cancelled by the insurer, even when I paid the remainder of the premium in full!

You did refuse to pay because you said when they couldn't take the direct debit they gave you a deadline to pay which you ignored!.

rs65

lisac999 wrote: »

Any advice appreciated, I can't believe I'm stuck with this forever because of one missed payment.

It may just be that online options won't be available to you. Find a quote you like and phone them. Some won't be bothered about cancellation and others will (remember, paying premium is a fairly fundamental obligation).


If you find one, try and get it in writing that they accept your cancellation.

Quentin

lisac999 wrote: »

Yes I realise that now ☹ looks like I'm stuck with saying yes for another 5 years then ☹

This stays on your record for ever (not just 5 years), and most insurers ask if you or anyone to be covered has ever had an insurance policy cancelled.

lisac999

Well without splitting hairs, ignoring the deadline is not the same as refusing to pay in my opinion. Neither does paying the remainder of the premium without coverage constitute a refusal to pay.