Car insurance admit error in black box which led to cancelled policy 18 months later!!!

Katielouise97

About a year and a half ago I was insured with Hastings smart wheels- a car insurance company where I had to have a black box installed in my car as part of the policy. As I was only 20 at the time and a uni student it seemed the cheapest and best option for me at the time.

Around 6 months in to my policy I had a letter sent through the post at my home address (and email although it went to my junk folder) telling me that my insurance was going to be cancelled in 7 days due to “bad driving” recorded on my black box unless I payed a £225 cancellation fee before the 7 days where up.

As this letter was sent home my parents rang me absolutely livid at me for being so reckless. I was so certain It wasn’t my fault as I am always driving to the speed limit as I know I have a black box in my car! I rang up Hastings countless times trying to inform them they must have made a mistake and each time was told that they use top of the art technology and theyre absolutely certain It was due to my reckless driving. I was pretty much backed in to a corner and made to pay the cancellation fee (I had to extend my overdraft to do it as I was student with barely any money as it was) and cancel my insurance before they did as I couldn’t afford to have a cancelled insurance on my name when applying for more. This also meant I lost a whole year no claim discount as I had to cancel.

Fast forward a year and a half and I’ve had a letter through the post from Hastings telling me that there was a problem with the scores on my black box all that time ago and that actually my policy was cancelled by mistake!!!

They have given my a cheque with a refund of my £225 I had to pay to cancel my policy and £50 compensation.

I personally don’t think this is enough due to all the stress I was under at the time this happened and the fact I lost a whole years no claim! Can anyone give me some advice on how much compensation I should be arguing for as I don’t want to just accept such a small amount of money when they have admitted full liability?

AdrianC

£50 to make up for that does sound risible. How much you think is appropriate is going to depend on how much time, effort and blood pressure you want to devote to getting them to increase the amount. Realistically, I'd suggest you push for somewhere around the same figure as they're refunding - £200ish.

But you didn't lose a "whole year" NCB - you lost "around" six months.

Scrapit

You've managed the last 18 months without being compensated and now they approach you out of the blue? I'd guess that's as good as you will get but ask them for what you want any way.

dacouch

Scrapit wrote: »

You've managed the last 18 months without being compensated and now they approach you out of the blue? I'd guess that's as good as you will get but ask them for what you want any way.

The OP had no choice but to scarp by.

I would recommend an Official Complaint outlining the losses you incurred along with projected future losses (As you will have a years less no claims for the next couple of years)

If you're not happy with their response then you can take it to the Ombudsman who will generally expect the Insurer to put you back in the (Financial) position you were in before they made this mistake.

I would also recommend you send a copy of the letter to the FCA as Hastings have form for cancelling policies by mistake. Last time they got caught doing it the regulator imposed a multi million pound fine on them

username901

I'd be demanding they 'topup' my no claims by a year too, and then get your parents to pay for the next years premium as an apology for not believing you - that would wind me up more than the !!!! up from the insurer, not being believed.

born_again

Have you been driving sine they cancelled the policy?

If not get the complaint in and list all the extra expenses you have incured due to not having the use of your car.
So taxi's, trains etc.
If you have then look for a refund on the policy you have had to pay extra for.
That will focus their mind on a more reasonable compensation figure.

Also get in writing that they will remove a cancelled policy from your history and reinstate the NCD for the last 2 years. Even though it was 18 months ago.

tasticz

As born again said above,

plus

I can only imagine how stressful it must have been at that time. I wouldn't accept the £50 compensation as they have admitted their mistake. Ask for another £100 - £200 on top for the time wasted dealing with it at that time and the stress

If they refuse take it all the way to financial ombudsman. FOS may choose to take on or refuge your case but if they do take on it will automatically cost the insurance company £550. Any ruling in your favour is binding to the insurance company.

Else, you'd have wasted some of their time for the sake of it.

Do it for the sake of stress it caused you.

AdrianC

born_again wrote: »

Have you been driving sine they cancelled the policy?

If not get the complaint in and list all the extra expenses you have incured due to not having the use of your car.
So taxi's, trains etc.

Not a hope.

Also get in writing that they will remove a cancelled policy from your history

The OP didn't have their policy cancelled. They cancelled it themselves.

and reinstate the NCD for the last 2 years. Even though it was 18 months ago.

The NCB is still extant. All they've lost is the six months for the part-year policy.

DoaM

AdrianC wrote: »

The OP didn't have their policy cancelled. They cancelled it themselves.

Under duress, with the threat of a cancelled policy marker on their record.

AdrianC

DoaM wrote: »

Under duress, with the threat of a cancelled policy marker on their record.

Perhaps.

But there is no cancelled policy on their history, and never has been.

born_again

AdrianC wrote: »

N
The OP didn't have their policy cancelled. They cancelled it themselves.


The NCB is still extant. All they've lost is the six months for the part-year policy.

Under threat of having to declare a cancelled policy. Which is now known to be based on incorrect data.

Had they not cancelled the policy. The OP could well have had a 2 year NCD.

Start any compensation on the highest you will take and work down. You never know. Hastings may already be aware of other cases of wrong decisions being made as such they will want to avoid FOS getting involved. As could well end up with another massive fine.

Hastings are well known for errors. Would not surprise me if they had the OP listed as having a cancelled policy....