RAC Insurance refusing to pay

Jcarra

So, i hope ive posted this in the right place.

7 months ago i bought a new car, and rang my insurance to change the details. This went through without a hitch (insurance doubled monthly but that was expected).

Fast forward to the start of this month and i receive a letter from the DVLA informing me my car is not insured.

So i call RAC who inform me they have no indication that i ever changed my insurance, and i was infact, still insured on my old car. So i kicked up a fuss, and they told me they would listen back in to my call from 7 months ago to see who was at fault.

2 days later they called and admitted they was at fault, however all they have offered me is to 'waive the cancellation fee'!

I have payed 300 to them monthly so far for a car i no longer have and have been driving round with no insurance for 7 months due to their mistakes. I have requested my full £300 back, however y have said they do not have to pay because

'they would have covered me if i would have had an accident anyway'

Which for one, i find very hard to believe, and for two, they obviously would say that now considering there hasnt been any claims.

I have been incredibly lucky avoiding getting pulled by the police in this time, as regardless of my excuse, they still would have impounded my car, all down to RAC's incompetance.

They have said they have passed my complaint onto the 'customer relations' team, who dont have a contact number and havent given me a timescale of reply.

Where do i stand?

Quentin

They would have covered you in the event of a claim (or police intervention). So you would have got the benefit of cover had you needed to claim.


But pursue your complaint regarding their poor admin and if unhappy with their reply escalate to the FOS for their adjudication at no cost to you.


(They aren't really the RAC, its another trading name of BISL who come out badly (usually the bottom) when Which? publish their lists of the best and worst insurers.)

rs65

Jcarra wrote: »

I have requested my full £300 back, however y have said they do not have to pay because

'they would have covered me if i would have had an accident anyway'

Which for one, i find very hard to believe, and for two, they obviously would say that now considering there hasnt been any claims.

What they have said is true.

If they have no record of the change, how did they justify the premium increase?

Browntoa

It was a mistake , it happens, you didn't actually suffer a loss from what I see

Aretnap

Mistakes happen from time to time, and when an insurer discovers that they've made an admin error like this they could either

(A) treat the customer as insured, which means paying for any claims which have cropped up in the meantime but keeping the premium; or

(B) treat the customer as uninsured, refund the premium and repudiate all claims.

I'm glad they do (A). Would you really prefer it if they did (B) instead?

If you escalate your complaint you will probably get some compensation for the time and stress this error has caused you, but it won't be a huge amount because you haven't really suffered any serous losses. If something serious had happened - for example if your car had been seized by the police - then you'd be entitled to have had your costs reimbursed and probably a larger amount for stress and inconvenience. But you can't claim compensation for something that might have happened but didn't.

Added - useful link on compensation for upset and inconvenience - http://www.financial-ombudsman.org.uk/publications/technical_notes/distress-and-inconvenience.htm

swingaloo

Wouldnt they have sent you new documentation when you changed cars? Ive just changed mine and have had a complete new certificate of insurance etc with the new car details on.

gemnomnom

When they say they made a mistake, is it a possibility that they changed the car over but typed in the wrong registration? Hence the change in premium, but also the letter from the DVLA stating no insurance. If this is the case, then it's correct to say they would have covered you, and you have been paying for the time on cover, so a backdated full refund would be unreasonable IMO. Just check though they weren't insuring a Range Rover if you told them it was a Punto, in such case you should ask for backdated difference in premium!