Help me - void policy

ShamA29

Hi. I'm in need of some advice.

In December 2017 I was looking for car insurance and was recommended a broker by a family friend. At the time, I was under a crazy amount of stress with interviews at the University of Cambridge. Additionally, because of these interviews I was rarely at home.

So, after a week the "broker" called me stating he'd found me a policy at £2029. I was over the moon, and asked him to go through with the policy (I gave him entirely accurate and correct details with no misrepresentations whatsoever). Made payment and everything seemed fine. I then recieved the interview verdict and secured a place! (Whoopee). Here's where things turned sour...

I trusted the broker and had no reason to doubt him (very naïve of me). I checked the policy document (clearly no where near as thoroughly as I should have done) and didn't spot anything wrong. All seemed in order.

6 weeks into my policy, a woman hit me on a roundabout. Her lane discipline was incredibly poor and she ended up hitting my rear fender (driver side) and scraping along the entire passenger door and half way up the driver door. I did what I thought was best and notified my insurance, went to A&E to get myself and passengers checked and reported the incident to the Police. Everything seemed to be fine.

A week later I get a call from Direct Line (my insurer), whereby they declared my policy void and said they'd keep the entire premium. This "broker" lied about the date I purchased the vehicle and put it down as March 2014 :mad: . I couldn't believe what I was hearing. I would have been 13 at the time! To make matters worse he also put me down as a homeowner, and rather than put my father down as my father, he put him down as my spouse! Not only is that disgusting, it's absolutely ridiculous. Immediately, I told the insurers what had happened and didn't withhold the correct information from them. They told me they would issue me a refund for the remaining 10 months and would not put my voided policy as fraudulent (I had no intentions of fraud).

Now my insurer says that they won't pay me the remaining £1690 due to the third parties claim, even though they told me they'd give me one beforehand (don't know why they've changed their mind, as the claim was still there before, nothing's changed in between the time they told me I'd get a refund and now).

I know I should have been more diligent with the policy documents but that's done now. I can't go back and change it. I'm not a stupid teenager, doing illegal things or whatever people seem to misconceive about younger people. None of this was intentional, and I definitely wouldn't have taken the policy out had I known my details were inaccurate.

I'd like to know, is there anything I can do to better this situation? Any way in which I can get some of my money back?

(If you're just going to vilify me then just don't comment at all)

ShamA29

Forgot to ask. Is there anyway I can make back some costs at all? The case is still a 50/50 (hoping I find the evidence soon to prove the third party's liability). In the event that I don't find any evidence, can I still claim some money back?

paddyandstumpy

Direct Line don't operate via the Broker market, didn't that raise flags in itself?

rudekid48

Who is this “broker”? It very much sounds like you’ve been the victim of what’s known as a Ghost Broker - all the signs are there, the first one being that Direct Line do not sell policies via Brokers.

These people trawl the internet playing about with info to find a decent price, add on a tidy margin, then “quote” you a price, get the cash out of you and then just buy a policy online in your name but with dodgy info to get a cheap price.

If this is the case you need to report this to IFED and/or the police as you have been the victim of fraud. I’d also speak to Direct Line again to ask them to help you do this as they also have a vested interest.

Regarding refunds, Direct Line will not issue any refund if they settle a claim (even 50/50).

If this was through a genuine broker then you need to invoke their complaints process immediately, you’ll then be able to escalate to FOS if you are not happy with the outcome or they ignore you for 8 weeks. Not a quick process but if you can prove that you gave the correct info to the broker then you should be successful, but, this Avenue is only open if it is a genuine FCA registered broker....

Reardoa

Sadly I think the above post is right. Is does have all the hallmarks of a ghost broker.

dunstonh

Certainly looks like a ghost broker.

The FCA have a register of authorised companies. Whilst an individual in general insurance is not required to be named on the register. The company they represent is (and this includes sole traders). So, is this so called broker firm on the FCA register?

https://register.fca.org.uk/

If you are have been subject to a claimable event in the policy year, you do not get a refund.

Aretnap

paddyandstumpy wrote: »

Direct Line don't operate via the Broker market, didn't that raise flags in itself?

To be fair that might be well known to people who work in insurance (or who spend too much time on forums like this) but I doubt whether more than a few percent of the general population would know that Direct Line don't operate via brokers, so it's not really fair to blame the OP for not knowing.

(OK to those in the know the word 'Direct' is probably a bit of a clue but I'm reminded of the survey where something like 80%of people couldn't name the main ingredient in Rice Crispies.)

ShamA29

Hi all. Thanks for all the replies, I really appreciate it.

I searched up 'Ghost Brokers' and alas you are correct in deeming this as such. I have given all the details I am aware of to Direct Line (including phone numbers, names, bank account numbers and sort codes). They said they'd investigate and try to hunt this person down.

In regards to the current 50/50, due to my policy being void, do I get nothing? Will I be able to recoup any costs at all? (The answer seems to be no by my logic, but I'd rather confirm it through someone with a bit more experience).

Come to think of it, it really was stupid of me to even think the Broker would give me a policy from DIRECT Line.

Can't really sleep much, hence the late reply.

Anyway, thanks again, your advice is worth its weight in gold.

Quentin

If this ends up as 50/50 then you can expect your insurer to come to you to reimburse them the payout they have to make to the third party.

ShamA29

Won't they use the £1700 that they refuse to refund me for any payouts?

Quentin

Does that cover their exact outlay? If so then it's a coincidence!! (Though challenging it may open a can of worms if they paid out more!)