Car Insurance Cancelled - How to escape?

7FootFish

Long story short; a couple of years ago I got some points on my license. My insurance with Elephant (who I'd been with for 10 years plus. No problems. Always the cheapest) was set to automatically renew. Since I hadn't communicated with them I forgot to tell them about the points. When I did speak to them about a claim a few years later I freely volunteered the information that I'd been given points. A few days later I was told via phone call that my insurance was cancelled because I'd lied to them (not strictly speaking true in my opinion). I was told repeatedly that I MUST tell future insurers that I've had policy candled. Fair enough I thought and we parted company.

What I didn't realise until later was how much of a financial penalty having a policy cancelled would be. The majority of insurers simply will not do business with me. Those that will give me a quote either charge a huge premium or are, bluntly, con artists. Unlike driving bans/convictions there is no "in the last five years" clause. This is for life.

I'm now in the situation where I'm a middle age man with a (now) clean drivers licence, 5+ years no claims, doing low mileage in a 1ltr car that I keep in a garage (in other words I should be a car insurance company's golden boy) and I'm paying nearly four times what I would be paying if I didn't admit to the cancellation. Also, because of the cancellation I can not be insured for my elderly parents car or hire a car.

Does anyone have any advice or experience on getting out of this? I'm trying to get something in writing from Elephant that I can take to the Insurance ombudsman but they only seem to want to converse over the phone.

FutureGirl

The issue is that each year you're sent a renewal pack and it clearly states if anything has changed you need to tell them - and you haven't.

When did they cancel the policy? Did you complain at the time?

Aretnap

7FootFish wrote: »

Unlike driving bans/convictions there is no "in the last five years" clause. This is for life.

There are a few insurers who only ask if you've had a cancellation in the last 5 years - the ones I remember are Direct Line, and their associated brands (Churchill, Privilege etc). So worth trying them - if not now then in a couple of years time.

Quentin

if you send in a formal written complaint then you will get a written reply. Read up in the policy docs on their complaints procedure and follow it.


Once they reply (or they ignore you for 8 weeks) you have 6 months to escalate to the FOS.


Don't hold your breath over getting a good result from this route though!

paddyandstumpy

It may be too late now, but would Elephant have insured you had you told them?

It sounds (from your OP) that the cancellation was for non disclosure, not because the risk isn't acceptable.

If they would have insured you (albeit at a different rate or with different terms) you may be able to try and argue the nondisclosure was innocent, and you would have paid the higher rate/accept the other terms had you been given the opportunity.

Insurers have to be very careful when cancelling a risk, there are (should be) a lot of hoops Underwriting need to jump through as set out by Compliance.

If they didn't follow correct procedure you may have an angle.

7FootFish

Aretnap wrote: »

There are a few insurers who only ask if you've had a cancellation in the last 5 years - the ones I remember are Direct Line, and their associated brands (Churchill, Privilege etc). So worth trying them - if not now then in a couple of years time.

Thanks for this I'll give them a check next time it's up for renewal. I don't know if I tried Direct Line's own website. The main comparison sites seem to just have a yes/no tick box.

7FootFish

paddyandstumpy wrote: »

It may be too late now, but would Elephant have insured you had you told them?

It sounds (from your OP) that the cancellation was for non disclosure, not because the risk isn't acceptable.

To clarify; they would not have renewed the insurance had they known about the points. Sorry if the OP was misleading.

worried_jim

Your insurance may be cheaper if you DONT keep your car in the garage and park on the road where it can be seen, try some dummy quotes to see if it lowers the price. Also all teenagers drive 1L cars so as a consequence they all get wrapped around bus stops killing people, however, large V6 volvos don't so may be cheaper ( and nicer to drive) to insure. Think outside the box.

Hero2000

I'm panicking because I'm in a similar situation. I used direct line because of the has your insurance been cancelled in last five years. Answer no. Correct, but on insurance motor proposal confirmation it reads you or any named drivers have NEVER had any insurance cancelled! Therefore I filled in correctly, but document clearly contradicts on-line form! Mine was cancelled over five years. Now worried if I call them they cancel my insurance. I need car everyday for work so can't risk losing insurance.

Hero2000

Aretnap wrote: »

There are a few insurers who only ask if you've had a cancellation in the last 5 years - the ones I remember are Direct Line, and their associated brands (Churchill, Privilege etc). So worth trying them - if not now then in a couple of years time.

I went with direct line for this very reason. Mine was cancelled over five years ago, but I noticed on motor proposal confirmation i received through post it refers to the named drivers have NEVER had insurance cancelled. I'm now worried if I call them they'll cancel insurance.

mutley74

I hit a bollard in a supermarket (damage to a rear door and sill) was easier to claim though insurance than fix private. With 12 yrs NCD and no other claims, my insurance has rocketed, and some insurers wont cover me as soon as I mention "fault claim". Personally NCD is a scam, as premiums just keep going on up, no consideration of good driving history.