Policy cancelled due to non-payment rights

lifeadminavoider

Thank you all for your replies - as I imagined when I wrote the initial post there I've got the sort of replies I was expecting along the lines of "why should the industry change to accommodate my ineptitude" etc and asking about how post was missed. 

The answer to the second part is simple.  There would be no reason for me to expect anything would have gone wrong - my Dad had arranged the policy and we'd shopped around in good time like everyone should, he also hadn't flagged up to me that the money did not leave his account. I was also working away in the run-up to Christmas and did not see any letters.  The second warning letter was put in a pile by my wife amongst other post, Christmas cards, letters for previous tenants etc - the letter I did open was apparently the third letter they sent, dated five days previously, which was also the letter stating the policy had been cancelled.  So there were only two actual warning letters sent.  The first of which I never received.  The third of which I opened immediately as it was on the doormat when I got back on Christmas Eve, telling me my policy was cancelled.  I immediately contacted my insurance company on opening this letter, and when they told me they'd sent previous warnings I found the second of the "three", but never the first.  Even though they could be discretionary about this, they haven't been, though the severity of the consequences financially for me are dire.  

The first part, well, we'll have to agree to disagree that because people make errors occasionally that have penalties that are disproportionate to the error itself that it means they should carry that around with them forever.  That certainly is a very harsh outcome and one I can see would discriminate against people's circumstances at the time of payment.  We are not all perfect all of the time - I can imagine for example that if you suffer from anxiety or other issues related to your inability to recognise the importance of situations that this could put people in worse off situations than I into unemployment.  That's why I'd like it changed to reflect that the reason the policy was cancelled was due to non-payment.  It would then be up to the industry to determine how much of a risk factor that is - and yes, they could decide that non-payment is a significant factor in their decision making but at least it would become a point of bargaining, as in non-payment is definitely not worse than having a policy cancelled due to fraud, which is a criminal offence, and as I've already pointed out, these sort of marks can be time sensitive on other things like credit files.  

dunstonh

and yes, they could decide that non-payment is a significant factor in their decision making but at least it would become a point of bargaining,

A payment failure on one policy creates a loss that takes an avearge of 7 other policies to cover.

as in non-payment is definitely not worse than having a policy cancelled due to fraud,

It is not as bad as fraud but it is a risk indicator that needs to be considered.   It is also an area that many companies will not increase their prices on.  Although comparison site pricing might.

Takmon

lifeadminavoider said:

The answer to the second part is simple.  There would be no reason for me to expect anything would have gone wrong - my Dad had arranged the policy and we'd shopped around in good time like everyone should, he also hadn't flagged up to me that the money did not leave his account. I was also working away in the run-up to Christmas and did not see any letters.  The second warning letter was put in a pile by my wife amongst other post, Christmas cards, letters for previous tenants etc - the letter I did open was apparently the third letter they sent, dated five days previously, which was also the letter stating the policy had been cancelled.  So there were only two actual warning letters sent.  The first of which I never received.  The third of which I opened immediately as it was on the doormat when I got back on Christmas Eve, telling me my policy was cancelled.  I immediately contacted my insurance company on opening this letter, and when they told me they'd sent previous warnings I found the second of the "three", but never the first.  Even though they could be discretionary about this, they haven't been, though the severity of the consequences financially for me are dire.  

If your old enough to be married and live with your wife then i think it's time that you put on your big boy pants and started to organise and pay for your own insurance instead of relying on your dad. 

Hasbeen

Sandtree said:

Hasbeen said:

You can complain to the FOS. But have you actually WRITTEN a Letter marked Complaint explaining the circumstances and POSTED it to the insurance company. In an envelope with a stamp?

There is no requirement for a complaint to be made in writing unless that is the stated complaints process for the insurer and the vast majority state you should phone them.  The OP states they have already received a final response from the company and given their FOS rights.

Sorry perhaps missed that bit about final response, as could only find OP complained and was referred to T&Cs and told "not a leg to stand on".

Could not find the mention that the insurance company had actually given their FOS rights? Perhaps OP can verify? He did bring FOS up in post.

But in to days Email  / telephone age. I always think it is a good idea to complain in writing with Complaint on the outside of the envelope and get an actual  written paper trail.

Perhaps old fashioned LOL. But as it appears that solely relying on digital communication perhaps does not work sometimes.    

k12479

lifeadminavoider said:

It would then be up to the industry to determine how much of a risk factor that is - and yes, they could decide that non-payment is a significant factor in their decision making but at least it would become a point of bargaining, as in non-payment is definitely not worse than having a policy cancelled due to fraud...  

Perhaps a section of the industry would just decide they can't be bothered investing to compete for the lowest quality customers and just blanket decline, further narrowing the market for those affected.

Perhaps insurance models already account for the risks of non-payers - like the risk of providing less accurate quote information, being disorganised in ensuring their car is roadworthy, the increased admin costs of dealing with these customers, etc.

Sandtree

Hasbeen said:
But in to days Email  / telephone age. I always think it is a good idea to complain in writing with Complaint on the outside of the envelope and get an actual  written paper trail.

Perhaps old fashioned LOL. But as it appears that solely relying on digital communication perhaps does not work sometimes.    

Very old fashioned if you still don't trust telephones! They've been around long enough to not be considered witchcraft any more

I do agree though, I prefer complaints not to be done by phone as it just leads to finger pointing with little in the way of proof of who said what etc however I am perfectly comfortable for written to be sent by email or even Live Chat 

lifeadminavoider

Takmon said:

lifeadminavoider said:

The answer to the second part is simple.  There would be no reason for me to expect anything would have gone wrong - my Dad had arranged the policy and we'd shopped around in good time like everyone should, he also hadn't flagged up to me that the money did not leave his account. I was also working away in the run-up to Christmas and did not see any letters.  The second warning letter was put in a pile by my wife amongst other post, Christmas cards, letters for previous tenants etc - the letter I did open was apparently the third letter they sent, dated five days previously, which was also the letter stating the policy had been cancelled.  So there were only two actual warning letters sent.  The first of which I never received.  The third of which I opened immediately as it was on the doormat when I got back on Christmas Eve, telling me my policy was cancelled.  I immediately contacted my insurance company on opening this letter, and when they told me they'd sent previous warnings I found the second of the "three", but never the first.  Even though they could be discretionary about this, they haven't been, though the severity of the consequences financially for me are dire.  

If your old enough to be married and live with your wife then i think it's time that you put on your big boy pants and started to organise and pay for your own insurance instead of relying on your dad. 

Thank you for your opinion, they're all useful.  I'll make sure I take your lead and make snap judgements about others financial situations rather than providing any help in the future, I imagine it probably makes life much more fun.

Like many people my age struggling on low incomes, finding £0000 out of thin air for things you haven't budgeted for but now have to buy, like when you have to relocate, get a new car and get a new job all at the same time isn't always possible.  I'm fortunate enough I could borrow at 0% interest from my parents.  I'm fortunate enough they offered to help me in a stressful situation by sorting out my insurance for me while I was dealing with other things.  It appears I'm also simultaneously unfortunate enough to have mistaken the aims of this forum.  

lifeadminavoider

dunstonh said:

and yes, they could decide that non-payment is a significant factor in their decision making but at least it would become a point of bargaining,

A payment failure on one policy creates a loss that takes an avearge of 7 other policies to cover.

as in non-payment is definitely not worse than having a policy cancelled due to fraud,

It is not as bad as fraud but it is a risk indicator that needs to be considered.   It is also an area that many companies will not increase their prices on.  Although comparison site pricing might.

Thanks for this - so, the insurer cancelled my policy and then wouldn't reinstate it - they forwarded me to their new business department who then quoted me a policy which was £600 more than the one that was cancelled.  They know it was cancelled due to non-payment, so why such a huge hike (not to mention the cancelled policy admin fees they've already charged)?  How do they discern between those who have had policies cancelled due to convictions and those who don't in that case? 

lifeadminavoider

Hasbeen said:

Sandtree said:

Hasbeen said:

You can complain to the FOS. But have you actually WRITTEN a Letter marked Complaint explaining the circumstances and POSTED it to the insurance company. In an envelope with a stamp?

There is no requirement for a complaint to be made in writing unless that is the stated complaints process for the insurer and the vast majority state you should phone them.  The OP states they have already received a final response from the company and given their FOS rights.

Sorry perhaps missed that bit about final response, as could only find OP complained and was referred to T&Cs and told "not a leg to stand on".

Could not find the mention that the insurance company had actually given their FOS rights? Perhaps OP can verify? He did bring FOS up in post.

But in to days Email  / telephone age. I always think it is a good idea to complain in writing with Complaint on the outside of the envelope and get an actual  written paper trail.

Perhaps old fashioned LOL. But as it appears that solely relying on digital communication perhaps does not work sometimes.    

Hi there - yes I can confirm they gave me my FOS rights in their final complaint decision and the complaints and investigation were communicated electronically and by phone with no issues there.  

angrycrow

Look at it from the insurers perspective. You failed to pay for the last policy and then failed to respond to the first two letters they sent asking you to urgently resolve the issue. What guarantee do they have you will not do the same again causing them additional expense. Their options are to refuse to quote or to quote at a level that discourages you to insure with them again. 

You are free to shop around but other insurers will also want to consider that for whatever reason you have shown yourself to be a high risk customer and they will likely price accordingly. 

I do agree it is unfair that the insurance industry can ask about cancelled policies forever but other convictions for more serious matters become spent but unfortunately that is the current system. If you don't like it ask your local mp to raise it in Parliament for you.