Voided Car Insurance

jmrkennedy17

Hi, I am hoping for some advice.  Back in January 20 my Partner had a car collision no one was injured but both cars damaged.  I was the policy holder my Partner named driver.  I rang our insurance company straight away I answered all their questions.  Last question being any points on your licence to which my response was yes I have a set of SP30's so 3 points why do you not have this on file?  I thought it was all automated these days with not having to send DVLC off anymore they all done electronically to which they replied we do no have your your DVLC details on file to do this.  I responded with yes you do and I have the email to prove it.  Long story short insurance company done a straight void on my policy for not having the points on file even though I could prove sending them my licence details and this was a genuine mistake not knowing not automated.  I then had to go and find a new insurance company to cover me which now costs me £325 a month as I have a voided policy against my name.  I sent this to the Ombudsman and they sided with the insurance company I have been so upset.  I have heard nothing from the insurance company until yesterday when I received a letter advising the claim for the third party has now been settled and I owe £23,156.00.  I have not been kept up to date throughout the claim by the insurance company they have not even sent me a break down of the £23K.  Is there anything i can do to fight this?  A genuine mistake for thinking points are automated now with DVLA been electronically and the insurance company having my dvlc details has now cost me £23K plus £325 a month for a new insurance policy.  This is so unfair and really harsh.  I work for a law firm and they are completely shocked by this.  Can anyone help me on this?  
Many thanks in advance.

tehone

When you purchased your car insurance, did it 
a) ask you if you had any points
b) in the terms and conditions, tell you that you had to inform them of any points that you accrued during the insurance period

If you work for a law firm, then I hope then don't deal with motor claims - a) and b) are standard questions / requirements

dunstonh

to which my response was yes I have a set of SP30's so 3 points why do you not have this on file? 

An SP30 is three points.  You say a set of set SP30s which indicates more than one.   So, how many do you have?

 I thought it was all automated these days with not having to send DVLC off anymore they all done electronically to which they replied we do no have your your DVLC details on file to do this.

You are asked on the insurance application to state any penalty points/convictions.   How did you answer those? 

If there were incurred after the point you took the policy out and there was a renewal point, then you are meant to notify them.

If they were incurred in the current policy year, it varies with some providers as to whether you should tell them immediately or wait until renewal.

 Long story short insurance company done a straight void on my policy for not having the points on file even though I could prove sending them my licence details and this was a genuine mistake not knowing not automated.

Unfortunately, an incorrect assumption on your part does not get you out of it.

 I sent this to the Ombudsman and they sided with the insurance company I have been so upset.

Whilst we dont have anywhere near the details required to make a judgement, it does appear from what you have said that the FOS have made the correct decision.     The FOS are slightly consumer biased.  They understand people may forget things as time goes on but for relatively recent events, such as having points on your licence, they would expect you to declare these when asked.

You generally find insurers are not overly concerned when it's just 3 points.   However, when you get above 3 points, they are more fickle. Some may not offer terms.  Some will increase their premiums.     

 I have heard nothing from the insurance company until yesterday when I received a letter advising the claim for the third party has now been settled and I owe £23,156.00. 

That is horrible.  Thankfully nobody was injured or killed.  Beyond the human factor, the cost would have gone into the hundreds of thousands or millions even.

I work for a law firm and they are completely shocked by this.

Absolutely right to be shocked.   However, it is the expected outcome when you are classed as being uninsured or driving without valid insurance.   As you work for a law firm, maybe the best option is to see if you can get some staff rates on legal advice.    However, as I am sure you know, ignorance of the law is not an excuse.    So, be prepared to be told there is little or nothing you can do about it.    If you have legal expenses on your home insurance, there is the possibility they could help cover some of your legal costs.

TELLIT01

If your insurance policy states that YOU have to inform the insurance company when you receive any points on your licence then I don't think you have any case against the insurer.  As you have discovered, you should never assume information is going to be obtained from other sources if it is your responsibility to act.  Surely this is a question you need to take advice on, and you could presumably do that through the law firm you work for.

On the face of things the insurer has acted entirely within its t&c in voiding the policy.

jmrkennedy17

It is one set of points I have so 3 points.  I did not have these at time of taking on the policy so I did not keep any info from them at the time policy was taken out.  Insurance company advised me they did not have my DVLC details on file and that is why not updated with points when I advised they have and proved they had they then said i should have noticed at renewal.  I am fully aware I should have noticed at renewal I have been told by so many people that what has happened has been really harsh and some insurance companies are understanding in this was a genuine mistake but they done a straight void when I have been with them for over 5 years never missed payments etc I just feel like it was harsh to straight void when they could have possibly asked for the additional premium it would have cost but now it has cost me £23K.  I could understand if I have not notified them of a drink drive charge or worse this was a genuine oversight. Thanks for your comments I have taken them all on board.

naedanger

jmrkennedy17 said:

It is one set of points I have so 3 points.  I did not have these at time of taking on the policy so I did not keep any info from them at the time policy was taken out.  Insurance company advised me they did not have my DVLC details on file and that is why not updated with points when I advised they have and proved they had they then said i should have noticed at renewal.  I am fully aware I should have noticed at renewal I have been told by so many people that what has happened has been really harsh and some insurance companies are understanding in this was a genuine mistake but they done a straight void when I have been with them for over 5 years never missed payments etc I just feel like it was harsh to straight void when they could have possibly asked for the additional premium it would have cost but now it has cost me £23K.  I could understand if I have not notified them of a drink drive charge or worse this was a genuine oversight. Thanks for your comments I have taken them all on board.

Did the insurer and Ombudsman conclude the non disclosure was deliberate/wreckless or just careless?
Had the insurer known about the claim would they have offered cover, albeit at higher premium?

It is worth double checking the decision is final and cannot be appealed further within FOS. If it is a definitive final decision then I think your only option is legal action. The following seems to be the relevant legislation.
https://www.legislation.gov.uk/ukpga/2012/6/contents/enacted
If the insurer would not have insured you had they know about the SP30 then I don't think there is much you can do since I think even if you won in court the most they could be forced to offer is a return of any premiums paid. 
If however they would have insured you had they known about the SP30, but concluded you acted dishonestly or wrecklessly, then you could consider legal action with a view to getting the court to decide your non disclosure was only careless. In which case the insurer would be obliged to pay a proportionate amount of the claim and I think offer cover (on the revised premium). 

Hasbeen

jmrkennedy17 said:

Hi, I am hoping for some advice.  Back in January 20 my Partner had a car collision no one was injured but both cars damaged.  I was the policy holder my Partner named driver.  I rang our insurance company straight away I answered all their questions.  Last question being any points on your licence to which my response was yes I have a set of SP30's so 3 points why do you not have this on file?  I thought it was all automated these days with not having to send DVLC off anymore they all done electronically to which they replied we do no have your your DVLC details on file to do this.  I responded with yes you do and I have the email to prove it.  Long story short insurance company done a straight void on my policy for not having the points on file even though I could prove sending them my licence details and this was a genuine mistake not knowing not automated.  I then had to go and find a new insurance company to cover me which now costs me £325 a month as I have a voided policy against my name.  I sent this to the Ombudsman and they sided with the insurance company I have been so upset.  I have heard nothing from the insurance company until yesterday when I received a letter advising the claim for the third party has now been settled and I owe £23,156.00.  I have not been kept up to date throughout the claim by the insurance company they have not even sent me a break down of the £23K.  Is there anything i can do to fight this?  A genuine mistake for thinking points are automated now with DVLA been electronically and the insurance company having my dvlc details has now cost me £23K plus £325 a month for a new insurance policy.  This is so unfair and really harsh.  I work for a law firm and they are completely shocked by this.  Can anyone help me on this?  
Many thanks in advance.

You work for a law firm? Then they could advise?

But you renewed ? and you did not answer the questions correctly about any points ?

Or you did not inform the insurance company at renewal of any points gained?

You have got off lightly, if your partner had injured or killed anyone then the £23k and insurance premiums would be the least of your problems.

Sorry for you OP.  But it is not "so unfair and really harsh."   It is life and learning.

What is DVLC?

Edit googled DVLC and still do not know?
Anyone?

Jumblebumble

jmrkennedy17 said:

It is one set of points I have so 3 points.  I did not have these at time of taking on the policy so I did not keep any info from them at the time policy was taken out.  Insurance company advised me they did not have my DVLC details on file and that is why not updated with points when I advised they have and proved they had they then said i should have noticed at renewal.  I am fully aware I should have noticed at renewal I have been told by so many people that what has happened has been really harsh and some insurance companies are understanding in this was a genuine mistake but they done a straight void when I have been with them for over 5 years never missed payments etc I just feel like it was harsh to straight void when they could have possibly asked for the additional premium it would have cost but now it has cost me £23K.  I could understand if I have not notified them of a drink drive charge or worse this was a genuine oversight. Thanks for your comments I have taken them all on board.

I suspect that the ombudsman will have asked the insurance company if you had been specifically asked if has anything changed since the policy was taken out . ( My insurers certainly ask this every time)
Did they ask this question and if so what did you answer ?
I agree it  is harsh but you cannot blame the insurers as   they save them selves 23K which is a tad more than taking an increased premium

chrisw

Hasbeen said:

jmrkennedy17 said:

Hi, I am hoping for some advice.  Back in January 20 my Partner had a car collision no one was injured but both cars damaged.  I was the policy holder my Partner named driver.  I rang our insurance company straight away I answered all their questions.  Last question being any points on your licence to which my response was yes I have a set of SP30's so 3 points why do you not have this on file?  I thought it was all automated these days with not having to send DVLC off anymore they all done electronically to which they replied we do no have your your DVLC details on file to do this.  I responded with yes you do and I have the email to prove it.  Long story short insurance company done a straight void on my policy for not having the points on file even though I could prove sending them my licence details and this was a genuine mistake not knowing not automated.  I then had to go and find a new insurance company to cover me which now costs me £325 a month as I have a voided policy against my name.  I sent this to the Ombudsman and they sided with the insurance company I have been so upset.  I have heard nothing from the insurance company until yesterday when I received a letter advising the claim for the third party has now been settled and I owe £23,156.00.  I have not been kept up to date throughout the claim by the insurance company they have not even sent me a break down of the £23K.  Is there anything i can do to fight this?  A genuine mistake for thinking points are automated now with DVLA been electronically and the insurance company having my dvlc details has now cost me £23K plus £325 a month for a new insurance policy.  This is so unfair and really harsh.  I work for a law firm and they are completely shocked by this.  Can anyone help me on this?  
Many thanks in 

What is DVLC?

Edit googled DVLC and still do not know?
Anyone?

DVLA used to be known as the Driver and Vehicle Licensing Centre until 1990. 

Aretnap

What was the FOS rationale for rejecting your complaint? Voiding the policy entirely, as opposed to reducing the payout, implies that either

(1) They thought that your failure to declare the points was deliberate (or at least reckless), as opposed to being the result of carelessness on your part, or

(2) The insurer would not have offered you cover at all had they known about the conviction (which would be unusual if it was a single speeding ticket and you were not already in a high risk group)

If the FOS has made a final decision then it should be on here in an anonymised form

https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions

Perhaps you could post the decision reference number so we can comment on it. (Though to be honest if the Ombudsman has made a final decision then your options are probably limited - the Ombudsman is quite consumer friendly and courts tend to need a lot of persuading to overturn its decisions.

davidmcn

Hasbeen said:

jmrkennedy17 said:

Hi, I am hoping for some advice.  Back in January 20 my Partner had a car collision no one was injured but both cars damaged.  I was the policy holder my Partner named driver.  I rang our insurance company straight away I answered all their questions.  Last question being any points on your licence to which my response was yes I have a set of SP30's so 3 points why do you not have this on file?  I thought it was all automated these days with not having to send DVLC off anymore they all done electronically to which they replied we do no have your your DVLC details on file to do this.  I responded with yes you do and I have the email to prove it.  Long story short insurance company done a straight void on my policy for not having the points on file even though I could prove sending them my licence details and this was a genuine mistake not knowing not automated.  I then had to go and find a new insurance company to cover me which now costs me £325 a month as I have a voided policy against my name.  I sent this to the Ombudsman and they sided with the insurance company I have been so upset.  I have heard nothing from the insurance company until yesterday when I received a letter advising the claim for the third party has now been settled and I owe £23,156.00.  I have not been kept up to date throughout the claim by the insurance company they have not even sent me a break down of the £23K.  Is there anything i can do to fight this?  A genuine mistake for thinking points are automated now with DVLA been electronically and the insurance company having my dvlc details has now cost me £23K plus £325 a month for a new insurance policy.  This is so unfair and really harsh.  I work for a law firm and they are completely shocked by this.  Can anyone help me on this?  
Many thanks in advance.

What is DVLC?

Edit googled DVLC and still do not know?
Anyone?

Almost every entry on the first page of Google search results contain the answer.