Car insurance to be cancelled for too many fault claims

AccidentProneMoneySaver

Today I learned that car insurance companies can cancel your insurance if you have too many claims.

Nearly two years ago I was hit by a bus. I was stationary at the time and there was a witness who said so, so an accident management company took me on.

Now the witness is nowhere to be found, the bus driver says otherwise, and the accident management company have decided to settle out of court 50:50.

When I told my insurance broker this, they said that this would add a fault claim to my record which would put me over a limit of 3 fault claims in three years (two other silly incidents it is not worth getting into here). I am still insured for now, but when the settlement goes through the underwriter may cancel my insurance.

I'm worried about how I am going to get insurance after that. I'm also worried about being asked questions like "have you ever had insurance cancelled?" for the rest of my life.

One idea I had was to just pre-emptively cancel my insurance myself and switch to another deal (maybe with one of those "high risk" specialists). That way I would at least be able to answer no to that question. But I suspect there is something wrong with that trick.

Any thoughts?

forgotmyname

Cancel it now and you still get to pay the full premium.

AccidentProneMoneySaver

Good point, forgotmyname. Then again I suspect I might pay the full premium if the insurance company cancels, too. Or it might be worth it to avoid getting a cancellation on my record, assuming such a thing is avoidable like that, which I find hard to believe. I would ask the broker but I'm not sure I could get anyone on the phone who would understand the question.

Norman_Castle

AccidentProneMoneySaver wrote: »

I am still insured for now, but when the settlement goes through the underwriter may cancel my insurance.

Did they say they would cancel your insurance or decline to offer insurance on renewal?

AccidentProneMoneySaver

Norman_Castle wrote: »

Did they say they would cancel your insurance or decline to offer insurance on renewal?

The broker used the word "cancel". There was talk of them possibly cancelling one policy then offering me another. But in a separate conversation with someone else I was told that "none of our underwriters will take on someone with three claims in three years". So I don't know how likely that is.

rs65

AccidentProneMoneySaver wrote: »

But in a separate conversation with someone else I was told that "none of our underwriters will take on someone with three claims in three years". So I don't know how likely that is.

Try an anonymous quote and you'll find out.

dacouch

Are you dealing with a proper local broker or a national broker you found through a comparison site?

If the former, then they work for you (Not the Insurer), ask them for advice on the matter, what they think will happen and any solutions they have.

If the latter then the above still applies although you may need to speak to someone senior to find someone with experience of the matter.

Worst case cancelling your policy would work, although I don't think they will cancel your policy mid term, they're more likely to not offer renewal.

If you want to avoid them declining renewal, they normally start working on them about 9 weeks before the renewal so cancel just before then.

Your broker should be able to have a word with them and let them know you will seek alternative cover from renewal and could the Insurer just lapse the policy and not decline renewal

CoastHopper

If you have kept the claims to your self ie non disclosed you will need to answer yes to that question

Jamiesmum

Who are you insured with?

What were the other 2 fault accidents, both 100% you are at fault?

I had one accident when I hit a parked car, my first ever claim last year (thinking now could have settled outside of insurers but I genuinely didn't know that at the time, both cars were technically fine) then a few months later someone totalled my parked car and ripped the engine out of it. Karma.
Then in January this year I lost control on a bend on black ice, I claimed for this + went down as Storm damage but, my fault.
Then September this year someone hit me up the rear.

So 4 accidents, 2 fault 2 non fault. Still got insurance cheaper than my last renewal. It IS high though. I pay £183 a month.

csgohan4

Jamiesmum wrote: »

Who are you insured with?

What were the other 2 fault accidents, both 100% you are at fault?

I had one accident when I hit a parked car, my first ever claim last year (thinking now could have settled outside of insurers but I genuinely didn't know that at the time, both cars were technically fine) then a few months later someone totalled my parked car and ripped the engine out of it. Karma.
Then in January this year I lost control on a bend on black ice, I claimed for this + went down as Storm damage but, my fault.
Then September this year someone hit me up the rear.

So 4 accidents, 2 fault 2 non fault. Still got insurance cheaper than my last renewal. It IS high though. I pay £183 a month.

183 a month is really expensive

AccidentProneMoneySaver

Thanks for the replies so far. The broker is the AA. The other claims were both 100% my fault (though both minor incidents). I've had probably 15 years claim free before that -- it's like buses.

I've been using the same broker since before any of the claims and just let it auto-renew. So everyone knows about all the claims. Maybe they won't actually cancel the policy and are just warning me that it's a possibility.

dacouch wrote: »

they work for you (Not the Insurer), ask them for advice on the matter, what they think will happen and any solutions they have.

The notion that the broker works for me is a good one to be reminded of. When I can face it I'll have another chat with them.