Car Insurance

SJJack

In Dec 2019 I changed my car insurers at renewal to AA. In Jan 20 I experienced a fire in my car's wiring caused by a defective fuse I'd just purchased. Initially AA said I wasn't covered but next day changed their minds, gave me written confirmation and collected my car and took it to their approved repairer. It took nearly 4 weeks of my persistent chasing for them to say that they weren't covering the claim. Obviously irritated, I complained and they refused my complaint, but it took them another month to do so. I then went to the Ombudsman who took another month to respond, finding in their favour (none of them seem to know how to interpret a policy wording!) So, by this time, its the end of April and I get a message to remove my vehicle from their repairers before it starts incurring storage charges, and it was collected by the scrap dealer the next morning. I've scrapped it as far as DVLA are concerned, so cancelled my direct debit, as I no longer own the car, so have no insurable interest. Now AA are insisting that I pay the balance of the premium due as they have paid storage etc for a 'fault' claim. 

jimbo6977

sounds about right.

Sandtree

Have you asked them how much they have paid to see if it is cheaper than the premiums?

In principle they are correct, if a fault claim is made, even if not fully covered, then the policy's full premiums become payable. If you reimburse them what they paid it may then be possible to terminate the insurance at a lower cost but that will depend naturally on the cost of storage -v- cancellation fees and outstanding premiums.

Different insurers and other claims handlers take different approaches to their commercial arrangements with their suppliers... some get discounts up front (eg in my claims days we didnt pay our garages for storage etc other than for fire cases and then it was 50/50) whereas others pay full retail up front and get an annual rebate depending on total spend etc. 

Hasbeen

SJJack said:

In Dec 2019 I changed my car insurers at renewal to AA. In Jan 20 I experienced a fire in my car's wiring caused by a defective fuse I'd just purchased. Initially AA said I wasn't covered but next day changed their minds, gave me written confirmation and collected my car and took it to their approved repairer. It took nearly 4 weeks of my persistent chasing for them to say that they weren't covering the claim. Obviously irritated, I complained and they refused my complaint, but it took them another month to do so. I then went to the Ombudsman who took another month to respond, finding in their favour (none of them seem to know how to interpret a policy wording!) So, by this time, its the end of April and I get a message to remove my vehicle from their repairers before it starts incurring storage charges, and it was collected by the scrap dealer the next morning. I've scrapped it as far as DVLA are concerned, so cancelled my direct debit, as I no longer own the car, so have no insurable interest. Now AA are insisting that I pay the balance of the premium due as they have paid storage etc for a 'fault' claim. 

You installed a fuse that caused your car to do on fire?

Discuss what you owe. What would be cheapest deal that they would agree to, pay storage fees or balance of your premium that is due?

It is a yearly policy not a monthly that DD covers.

SJJack

They say they paid around £1200 and the premium is only £190  I also mentioned in my original post that I have it in writing from AA that it "would start incurring storage charges" which is why they wanted it removed. Since I had the car removed the very next morning, I'm waiting to hear their explanation as to how suddenly storage charges for less than 24 hours amounts to £1200 !!  I've already told them to use the £100 apology cheque they sent me to offset it as I haven't cashed it, and I'll see them in Court for the rest !  I worked in Insurance for 30 years, have FCII qualifications and I know how to legally interpret a policy wording. Not one of the AA employees nor the Ombudsman have the same level of qualification so this is going to be interesting!

Hasbeen

SJJack said:

They say they paid around £1200 and the premium is only £190  I also mentioned in my original post that I have it in writing from AA that it "would start incurring storage charges" which is why they wanted it removed. Since I had the car removed the very next morning, I'm waiting to hear their explanation as to how suddenly storage charges for less than 24 hours amounts to £1200 !!  I've already told them to use the £100 apology cheque they sent me to offset it as I haven't cashed it, and I'll see them in Court for the rest !  I worked in Insurance for 30 years, have FCII qualifications and I know how to legally interpret a policy wording. Not one of the AA employees nor the Ombudsman have the same level of qualification so this is going to be interesting!

So not much point in coming here asking for advice then. Good Luck. 

Sandtree

Did it go to an Ombudsman or did you not escalate the complaint when the adjudicator didnt uphold your complaint?

In my opinion even going to an Ombudsman in the FOS is a role of the dice and I have seen (and received) some fairly surprising outcomes... the only saving grace is that their decisions don't set precedence.

If you're a fellow with 30 years experience why the need to post question? If it was just as a vent/warning then there is a special forum on MSE just for venting your spleen.