Policy cancelled due to non-payment rights

lifeadminavoider

Thank you @angrycrow - I don’t disagree with any of that, I will raise it with my MP because it seems like a curious loophole, almost like having to declare it forever is an unintended consequence of well meaning legislation/regulation.

dunstonh

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.

That means they do not want you as a customer.

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)? 

It is generally referred to as a passive blocker.  Rather than saying no to you, they set a premium that they know you will not go for and will look elsewhere.

How do they discern between those who have had policies cancelled due to convictions and those who don't in that case? 

Convictions are asked for as a separate question.

In reality, the question about "ever had a policy cancelled" can stop being answered as yes in about 5 years time.  Possibly after 2 or 3 if you stay with the same insurer for a few those years and don't return to that particular insurer for at least 5 years.

Takmon

lifeadminavoider said:

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.  

Well that is the purpose of an emergency fund for expenses that come up but you haven't specifically budgeted for, not having this is a big financial planning failure to start with. 
I bet your not much younger than me and i don't have to rely on my parents for loans, but even if i did then they would transfer the money into my bank account and i would then go online and pay for the insurance as any adult would. You even said you were there when you dad did the comparison online so why didn't you just do it and then you wouldn't have had a problem with letters instead of emails (although it is very silly to ignore letters and not open them). 

This is a big reality check that you need to stand on your own two feet as an adult and sort out your finances yourself. If you think that is not helpful and that relying on your parents as a grown adult is the right choice to make then your not going to get very far in life.

Sandtree

lifeadminavoider said:
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? 

I don't have a car right now as I live in central London and there is no point but the last car I had was a fairly decent, expensive reasonable performance thing. When I went onto Confused.com my quotes would range from £500 to over £7,000 despite the fact all were presented with the same details for a mid (late) 30s guy in the south east with a full license since 17 and no declarable claims/max NCD.  Its simply because some insurers aim at the "mass-exclusive" market and are comfortable insuring high value vehicles whereas others are pitched at the cheap and cheerful who know a minor prang will never be claimed for as the dent on the OS wing just matches the pre-existing one on the NS wing. Insurers however don't like saying no in the General Insurance space and so instead tend to quote very high premiums to dissuade people from buying. 

This is no different, some insurers will not care at all and others will run for the hills. The insurer that's been stung in the first place by the non-payment will potentially take a slightly different approach than if you were a person who'd had a policy cancelled by another insurer and now come to them.

They discern the difference because they ask.