Van Insurance Declined

mallygp

This is a new one for me.

Used a comparison website for van insurance and the cheapest quote I got was for £296 with City Insurance Group. Clicked their linked and proceeded with the usual questions and paid in full. I'll mention that again. PAID IN FULL.

Waited for the standard email with docs attached but what I got was an email saying this

"Dear Mr Parker

Many thanks for arranging cover through our website. We would like to take this opportunity to welcome you as a new client.

Confirmation Needed Please Call Us on 01962 844 848"

So I did.

They explained this was standard as they much prefer customers to phone them than rather use the internet. No problem I thought and answered the standard questions again.

Then she said, I've noted from a credit search that you were made Bankrupt 5 years ago. "Yes" I said.

Then she told me that my insurance had been declined. I had been refused. Steam from my ears and alarm bells ringing I said how the hell does being made Bankrupt 5 years ago affect how I drive. Also I've paid in full. Not credit. Not monthly no loan.

This didn't matter she said. She then amazed me when she said "They do not want your money"

She the proceeded to tell me I could insure with another and gave me a new quote for £780

Of course i told her to stick it. Said they were running bait and switch scam and demanded my money back.

Has anyone had this experience before?

I have contacted the FCA and written an official complaint to City Insurance Group also asking them to forward their response onto the FCA as well as me.

The FCA being impartial explained that an Insurance Company has the right to do this. If so can anyone explain the risk I pose. I paid in full. Bankruptcy doesn't make you an awful driver.

Now I have to tick that box. EVER BEEN DECLINED INSURANCE. 32 years i have been driving. Never claimed. Never had an accident. Never been refused Insurance either.

Sparx

You haven't been DECLINED insurance - they have just decided not to QUOTE you on the basis of your bankruptcy 5 years ago (for whatever reason).

You do not need to declare 'declined' insurance, just because they chose not to quote you as a customer once they knew you were bankrupt 5 years ago.

CJ1990

Don't understand why they'd decline when you're paying in full. Weird.

Zorillo

Statistics prove that people who have been made bankrupt are more likely to make a claim than people who have not. It really is as simple as that.

Sparx

Zorillo wrote: »

Statistics prove that people who have been made bankrupt are more likely to make a claim than people who have not. It really is as simple as that.

What statistics? Interested how this information is known by insurance firms when claims are made.

I really don't see the correlation between bankruptcy and vehicle insurance at all...

I'm with the OP on this one - especially as he was paying in full.

Zorillo

Actuarial statistics built up over decades, and they know at the point of claim because they ask, or they investigate and find out without asking. Bankruptcy is a public thing.

mallygp

Sparx. I hope your right. Although they did quote. I did go on the website and I did fill it all in and then paid for the Policy in full. I received an email as mentioned above. Just to prove who I was. She then told me the Insurance Company had just Declined my Policy and didn't want my money. They then transferred the money back into my account.


CJ1990 Yeah totally wierd. I then looked at the next cheapest quote. Autonet Insurance. Again filled out the online form and theirs had the question ccj's or bankruptcy. So as not to pay again an then be declined I thought I'd phone them direct.

Mentioned what had previously happened and he said I would get insurance with them also having been made Bankrupt. Again pulling my hair out I said that I'd be paying in full and to give me an example how I would be a risk.

Kid you not. He went on to say that the Insurance Company didn't know if I was made bankrupt from some Motoring Con. What the hell he was trying to say just blew my mind.

Also he told me that even if an Insurance Company doesn't ask if you have been made Bankrupt then you should always inform them as this will validate any Policy.

These plonkers appear to have no clue.

By the way. I later filled in for the 3rd best quote. Ticked the box yes I have been Bankrupt. Yes been declined Insurance. Paid in full..............5 minutes later. Policy emailed van Insured all for £349

T

mallygp

Zorillo wrote: »

Statistics prove that people who have been made bankrupt are more likely to make a claim than people who have not. It really is as simple as that.

Well there it is in a nutshell then. People who are made Bankrupt are Dodgy untrustworthy individuals. :rotfl:

A rather bias stat.but i guess it makes sense.

Shame they can't look back and see that I haven't claimed in the 32 years of driving. Funny they never keep that information.

Just to clarify. I was in a Partnership in Business. 2013 we went belly up. Became personally liable for the debt. Unlike Directors of Companies for example Donald Trump that walk away.

I then become Dodgy

while

Donald goes on to become a President.

Go figure

Zorillo

Mally, decisions aren't taken on individual circumstances. You go into the pot with all the other bankruptcy cases and some insurers choose not to accept you, and some do. You've got a good price having disclosed the bankruptcy to an insurer that accepts it. That's a good outcome, isn't it?

Quentin

When applying originally you may have missed when accepting the assumptios they wanted you to agree to included an assumption that you had never been bankrupt or similar wording.

mallygp

Zorillo. Yes I'm happy with the price. As I have said. 5 years since Bankruptcy and have never had this issue before. Same with the wife who was also a partner in the business. Never seen that question before ( ccj or bankrupt tick box before until now.

Quentin. The online form for City Insurance never had that question for me to answer.

Just the "Have You Made A Claim in The Last 5 Years"

Which draws me back to this: Statistics prove that people who have been made bankrupt are more likely to make a claim than people who have not. It really is as simple as that.

That's why there is the "Have You Made A Claim in The Last 5 Years" box

What next.......Have you claimed PPI

People who have claimed PPI are more likely to make a claim on there Insurance. Some think tank are missing that one.

I may give the Insurance Companies a ring as I think they are missing out on a quick buck with that one.