Insurance problem - please help!

EmmieG

Hi - I really hope one of you savvy people can offer some advice please? :-)

My son received his motor insurance renewal so when he telephoned to renew he told them that he would be moving house in the next month or so (to look after me following a couple of heart attacks), but they said they couldn't give him a quote on the new address until he was actually living there), so he paid the annual premium in full from the address where he was still living.

On Friday he telephoned his insurance again to give them the details of the new address so it could be updated on the policy (having now moved in) and was told they could not get a re-quote up on the system. They said it was probably because the insurance didn't cover the new area so they would find out and call him back today, but that if this was the case the policy would be cancelled and he would have to just go online and get a quote from a company that covered the new area but that his premiums would be refunded in full minus any claims made (there are none).

No call today, but he received an email this afternoon to say that Southern Rock were exercising their right to cancel the insurance cover so there would be no cover on the bike after 7 days from the date of the letter and to get quotes from other insurers.

My question is this - if I am reading the letter correctly, it seems to suggest that they are cancelling because my son is in breach somehow (wording below) but the cancellation is being made just because he has moved house and they do not cover the area he has moved to (ironically the bike at my address is under cover, in a locked, security gated car park, out of sight of anyone but residents and needs fob/coded access to get in to the area where it is parked!) lol

He has replied to the email straight away to ask them to confirm that the only reason the policy is being cancelled is because he has moved to an area that they do not cover, as he does not want a cancellation of his insurance to affect any future insurance?

If he nows goes online to get insurance quotes and they ask if he has ever had insurance cancelled what does he do? It isn't being cancelled for any bad reason, it is just being cancelled because he has moved house NOT because he has defaulted or lied or cheated or done anything wrong at all (all he has done is move home to look after me) :-(

I would really appreciate any help or advice please?

I have added the wording they have sent in their email below. I also have the wording of the Policy terms but cannot seem to attach a photograph, but I can send the screenshot of the page via email / message if it will help for anyone?

Thank you so much for any help or advice anyone can offer please xx


We are writing in connection with the above mentioned Motorbike Insurance Policy.

Our underwriters, Southern Rock Ins Co Ltd, have chosen to exercise their right to cancel your insurance. Having reviewed the policy they are no longer happy to quote for this particular risk.

Please may I draw your attention to “General Conditions applying to the whole policy” of your policy wordings which for the basis o the contract Southern Rock Ins Co Ltd have with you. Under Section 1. “Cancellation” point “g” states:

Where we believe that continuing to provide cover following a known breach of any policy term, condition or endorsement presents an unacceptable risk to us”.

This has left them with no alternative but to invoke their right to cancel in accordance with the above mentioned Policy Section and therefore we are hereby giving you notice that your policy will be cancelled as from 7 days after the date of this letter.

There will be no insurance conver in force after 16/10/2017 at 23.59 hours.

You are advised to obtain cover elsewhere as it is an offence under Part VI of the Road Traffic Acts 1988 to drive, or otherwise use your vehicle on the public highway without insurance cover being in force. Who your policy is cancelled we will calculate any refund of premium due. This is then subject to a £35.00 fee if your policy cancels within 14 days of your policy inception date or £75.00 if your policy cancels after the 14 days period. Please note that should there be any shortfall in the monies paid on the policy you will be contacted for payment.

Blibble

It sounds like the underwriter is not happy to cover the new address as it's a high risk area or similar - this sounds like an underwriting choice, rather than anything your son has done wrong.

The email does seem quite alarmist, but I'm sure the cancellation reason is more innocuous if everything is as described.

I'd call the insurer tomorrow, get them to clarify the cancellation reason in writing further, and proceed to look for new quotes as advised.

EmmieG

Thank you so much for the reassurance Blibble! Yes everything is exactly as described :-)

According to the internet research his previous address (Aberdeen) is indeed considered a very low risk area but the new address (Greater Manchester) is considered higher risk.

We have written to the insurers asking them to confirm that the only reason for the cancellation was that Southern Rock didn't cover the new address area and nothing more but we will certainly follow the email up with a phone call if we do not receive a reply tomorrow.

When doing comparison quotes online, do we answer yes if they ask if he has ever had insurance cancelled? (it doesn't seem right to say yes when it is just as a result of not covering the new postcode area?)

Should we still expect to have to pay the cancellation charge of £75 when they are the ones who are cancelling and not us?

Thank you so much for your help everyone :-) xx

Update - we just received an email back - short and sweet and to the point but very welcome! (copied below - spelling mistakes are theirs not mine lol) :-)

Dear Mr.........
Thank you for the email.
I can confirm the reason your policy was cancelled cause of you moving houses, as the underwriter does not cover the area you moved to.
Kind regards,