Insurance Voided

DinoCat

Hi
Yesterday I received a phone call and then email from my new car insurer because I had not declared an insurance claim for my named driver from Nov 2015.

When I completed my details for car insurance on the price comparison sites I was using the details from the last car insurance that I had taken out in October 2015. When I completed the information on the websites I believed all the information to be true, to the best of my knowledge. When I received all my documentation from the AA I checked the policy and further believed it to be true to the best of my knowledge.

I had no memory of the named driver having an accident in Nov 2015. They have considered this oversight as a “careless misrepresentation” but “careless” would suggest that I just forgot or I didn’t care if the information I provided was true or false. This is not true - this was a completely innocent omission - I didn’t just forget or didn’t care I really had no memory of this accident. So I hadn't checked the details with the named driver because I believed nothing had changed since October 2015 ( haven't had a car since so there was no more recent information for me to copy). If I thought there was undisclosed information I would have cancelled the Policy when I got a request to validate our details and not have to have the forever stigma of a voided insurance claim. It seems incredibly harsh that through complying with every step of your investigation process I have ended up in a situation where I’m being punished for an honest and innocent omission - If I had been aware of the accident and was acting to save money I could have cancelled the policy with no further consequence as would have been my rights within the 14 day period.

Since I received the phone call this morning I have spoken to the named driver and at first he couldn’t remember himself having an accident in 2015 but then after a lot of thought he did remember he had gone in to the back of a car at a roundabout (very gentle collision where he admitted full responsibility). He couldn’t remember when this was or what happened about the claim. At this point I can honestly say that even with him mentioning the accident I really cannot remember any details about it. I willing to accept that I was stupid in not checking about the named driver's claim but somehow' the crime doesn't fit the punishment'.

AA suggested I go through an insurance broker for my car insurance as they could explain to their insurers my ‘careless misrepresentation’ but the cheapest quote to insure my car from them was over £700 (as opposed to £250). I feel like I have committed a crime that is not only going affect my car insurance for the rest of my life, but my husband’s car insurance and my son’s car insurance as I am the named driver on their policies. It’s also going to affect every insurance I ever take out, forever. At least with a criminal record you get to get it written off after a certain amount of time – with this its for life. I feel this is even more upsetting because I only added the named driver to the policy because I always have -he has his own vehicle and the main purpose of the policy was for my personal and business use.

I have put in an appeal but suspect it may be turned down.

The contact from the AA came on Day 15 of my policy - is it worth asking when they knew the information was incorrect? If they knew on or before the 14th day of my claim would I have grounds to cancel my application?

I acknowledge that I innocently and inadvertently left a claim off the named drivers details and I should have checked. The AA say they can't reissue the insurance with the new details because they would not insure me with the named drivers having a claim and a speeding conviction. Therefore it has to be a voided insurance claim.

I am devastated. We lead busy and stressful lives and things do slip our minds on a regular basis but it seems so unfair that I will have to declare this voided policy forever on all insurances I have or take out. It seems so unfair that someone with multiple convictions can have these written off whereas an innocent oversight comes with a lifetime's sentence. I also cannot understand why, when you are asked the questions on insurance forms, there's just one blanket statement to tick. Surely a drop down box asking why your insurance was voided would be fairer and surely there should be a time limit on the how long you have to declare these?
Any advice would be most welcome.
Thank you/

paddyandstumpy

There is no point pursuing the 15 day line of enquiry, it won't get you anywhere. Some insurers only used to do these validation checks at point of claim, consider yourself 'lucky' this didn't happen then, as they'd have to pay for any third party claim and could then look to recover their costs from you.
My point is that regardless of whether this info came to light on day 1, 14, 15 or 364; they have to cancel the contract as if it never existed and have done so.

You can try to appeal to them have the voicance revoked, but it sounds like they are well within their rights. As they have told you they wouldn't have offered you cover with that insurer (the AA are just a Broker) now the full info has come to light they have no option but to void the cover.

FutureGirl

When you fail to disclose something you either do it carelessly, or recklessly/deliberately.

They have decided you were only careless, in that you forgot you had the claim. You can't say you didn't forget... because you did forget about the claim, because you had no memory of it... thus you forgot about it.

Unfortunately the law says that the onus is on you, as the policyholder, to make sure you answer the questions asked, honestly, and take care not to make a misrepresentation.

ripplyuk

OP, is it that you forgot, or that you did not KNOW about this incident to begin with?

FutureGirl

If the incident was Nov 2015, when it came to renewal time, the claim would have been noted on your renewal documents, no?

DinoCat

FutureGirl wrote: »

If the incident was Nov 2015, when it came to renewal time, the claim would have been noted on your renewal documents, no?

It was my husband's claim - not mine. It's an online insurer so there was no paper documentation and he just renewed with the insurer he was with when he made the claim. As it was his claim and I wasn't driving at the time as I had sold my car it wouldn't have been something I had dealings with.

DinoCat

ripplyuk wrote: »

OP, is it that you forgot, or that you did not KNOW about this incident to begin with?

I had just forgot - probably because it was my husband's claim, the car he went in to suffered very little damage, husband admitted responsibility and all he had to do was sign a form to say that. We both just forgot about it and tbh I only have a vague recollection even now it's come to light. I was very busy with work at the time and I think I just parked it somewhere in my brain where I didn't have to think about it because it was for Ian to sort out. When I filled in the details they were correct as far as I could remember and because I couldn't remember anything I didn't check with him. I know it's my fault but I just don't understand why I can't put the wrong right and why forever more I need to declare it with all the additional costs that's going to incur. And I am lumped in with people who have intentionally wanted to defraud the system

FutureGirl

Ah OK, the fact you did know, but forget makes it correct that it is deemed to be careless.

Although an online insurer, you would have still received a renewal quote, asking you to review to check all details are correct, and to let them know if something wasn't correct.

The insurer has done nothing wrong. it seems, had they known about the incident, they wouldn't have offered to renew the policy anyway, hence the avoidance of the policy. These online only companies are very particular in the type of people they want to insure, as it makes underwriting the policies easier and quicker - hence cheaper prices.

You aren't being lumped with people who intentionally want to defraud the system, hence why they have classed it as a careless mistake.

molerat

I would say you were lucky to get away with careless omission. When adding another driver to a policy you are expected to know or ask them about their accident history and it would be fair to assume you would likely know your husband's history. I am afraid this is going to bite you for a long time.