New car nightmare - current insurer can't update cover but still being penalised?

khgibb

So I'm currently with M&S car insurance - a 5* defaqto rated policy. It runs out in October.

I bought a new car at the weekend and need to update my car insurance details. Apparently the underwriter for my policy won't cover the new car. I can only assume that it is because as it is less than a year old and therefore market value much higher, whereas my old car was 12 years old.

Therefore the only option I have is to pay £50 to cancel (not my choice) and go elsewhere or to take out a new 12 month policy with another of their underwriters for almost double the amount of the quotes I've had elsewhere.

Which basically adds £50 to the cost of any new policy I take out anywhere. Its not my fault they won't cover me for a like for like reasonable service and allow me to pay the extra for the remaining couple of months, so I don't see why I should be penalised. And I can't leave it running as I don't have the car anymore, plus I would lose 9 years no claims.

Are they able to do this? Surely if they can't offer me the option to continue with the same policy/same underwriter then I shouldn't be penalised for being forced to leave or pay twice the amount to stay with a different underwriter? Other insurance quotes have come back £200 less than their new underwriter policy.

:mad:

forgotmyname

Its your fault you changed car and chose one they wont cover. If you asked them for quotes BEFORE buying the car you would have known.

If its not your fault what changes have they made to your current policy that means you have to cancel it? Answer = NONE.

You changed the vehicle not them.

They have no issues with continuing your policy with the current car. Dont buy the new one and they will not cancel your cover or charge you.

khgibb

Ha, don't buy a new one? At 7 months pregnant I don't think staying with an old and increasingly unsafe car is really an option

No one else I know had had their current insurer refuse to update their policy in this way when they have changed cars. Just think it is daylight robbery given the new car is exactly the same make and model, just newer!

somethingcorporate

Wow, my wife must have missed the "must buy a new car" when she hit 7 months pregnant with our 12 year old car. Was that somewhere in the manual??

It's a shame but this isn't the fault of the insurance company.

ACG

Realistically the problems have only arisen because of changes you have made. The insurer is under no obligation to insure you going forward or if you want to make any changes (vehicle, home address, the fact you have kids can alter premiums etc).

As has been said, if you did not change car there would be no issue so its really down to you to suck it up and put it down to experience.

forgotmyname

Why is it increasingly unsafe? Is it a neglected rusty wreck?

You need to get to know more people, then you will know someone that had an insurer refuse to cover a different vehicle mid term.

I was in my early 20's when i bought a V8 Rover. My insurer that covered my classic mini decided that there was no way on earth they were going to cover me. I simply went elsewhere.

Daylight robbery, maybe we should talk about depreciation on your new purchase. I bet its lost more than £50 in value since you started this thread.

DCFC79

khgibb wrote: »

Ha, don't buy a new one? At 7 months pregnant I don't think staying with an old and increasingly unsafe car is really an option

No one else I know had had their current insurer refuse to update their policy in this way when they have changed cars. Just think it is daylight robbery given the new car is exactly the same make and model, just newer!

Well that's down to the insurers invalved, not all are the same. Just get a new policy.

Aretnap

Unfortunately when you took out the policy they agreed to insure Car A; they didn't agree to insure Car B; by asking them to insure car B instead you're the one making the change and you can't force them to agree to it.

The cancellation charge isn't there to punish you for cancelling - it's there to reflect the extra costs that early cancellations cause insurers. The alternative would be for the insurers to absorb those costs themselves by putting up prices for all customers - including those who don't cancel their policies. £50 is fairly reasonable by industry standards - the Ombudsman has ruled that higher amounts are fair.

In future the way round it is either (a) check with your insurer whether a new car will be acceptable to them before you commit to buying it, (b) time your change of car to coincide with your renewal date (not always practical I realise or (c) just accept the insurance thing as part of the expense, hassle and general pain in than backside that come with buying a new car (I drive a 15 year old car myself precisely because I want to avoid that hassle and expense as much as possible).

AylesburyDuck

Unfortunately OP i think you'll just have to take the 50 quid hit. Smarts i know but insurance companys have it sewn up every which way.
Congrats on the pregnancy and good luck for the future, why shouldnt you have a new car if you wish, i get the needing something reliable thing.

agrinnall

I would ask M&S to waive the cancellation fee given that they are declining to continue cover - they may be entitled to charge it but in the circumstances you may well persuade them to drop it.

lisyloo

Agree with the last poster, your best bet is to ask nicely.
My fil gave up driving at 84 and direct live waived the fee. That was his choice too.