Car insurer won't insure for address change

CWAL_2

I am insured with Pukka through a broker called Autonet.

I know the difference and usually go with the proper companies but tried a broker this time.

I am absolutely furious with the customer service.

Rang up to change my address, a very ordinary thing to do. Unfortunately the underwriter Pukka declined address change (with no reason), I only moved 2miles away, to a nicer/safer area. 

Not only do Autonet have a cancellation fee £50 (which I knew) it turns out the underwriter pukka also take £56.00 from my refund, leaving me with a pittance after.

Option 1 - cancel and renew for a year loosing MY no claims bonus because of Pukka's very unintuitive insurance system. Autonet will kindly reduce the fee from £50 to £25 (how kind). But Pukka will still take the £56 for me cancelling because THEY won't insure at my new address.
Option 2 - Cancel and Autonet charge £50. Pukka still take £56. Hang on, I want to leave and go to another insurer because Pukka won't insure me, "you can't do that", we're going to take a £100+ off you for our inadequacies.

The fact the lady on the call couldn't explain why the above was fair shows there are serious failings in the system here.

Is there anything I can do with the ombudsman, reporting, are they doing anything wrong.

I hate the line "you signed it in the contract" but I've looked at the cancellation charges and can only see the auto net £50 (which I knew about), not the £56 of my pro rata refund.

Any wisdom, advise or help much appreciated.

A frustrated 20-30yo who has 8 years no claims, but seems to have paid in excess of £15k on insurance over this time! The UK insurance system is ridiculous.

tacpot12

I can't see that they are doing anything wrong if your had sight of both the insurers and the brokers terms before agreeing to take the insurance. 

They are allowed to decline to insure you at a new address because the risk has changed. You might believe your new area is safer, but they might have data to show that it is not. You could challenge them to so show this and complain to the Insurance Ombudsman if they can't.

Do you have any option to leave your car at the old address? 

dunstonh

The fact the lady on the call couldn't explain why the above was fair shows there are serious failings in the system here.

No it doesn't.  Call centre staff are not qualified or experienced in this area and you should not expect them to be able to explain it.

Is there anything I can do with the ombudsman, reporting, are they doing anything wrong.

They are not doing anything wrong.  The ombudsman cannot intervene in a commercial decision.

However, you could input the revised details and get a quote as if it's new business and see if they offer terms.  If they do, then you have a case.  If they don't then you know they are not doing anything wrong.

I hate the line "you signed it in the contract" but I've looked at the cancellation charges and can only see the auto net £50 (which I knew about), not the £56 of my pro rata refund.

Cancellation terms are normally published. 

A frustrated 20-30yo who has 8 years no claims, but seems to have paid in excess of £15k on insurance over this time! The UK insurance system is ridiculous.

There are certain things that could be better but not seeing your issue as ridiculous.  Unfortunate yes but not ridiculous.

Sandtree

CWAL_2 said:

The UK insurance system is ridiculous.

Would you prefer the US system? Some states only require you to buy $10,000 of third party cover... though you'll lose your house and be in thousands of debts if you accidentally hit a cyclist.

I think there are some interesting state paid solutions to third party losses but the old argument is their inefficiency means the extra taxes raised will need to be more than premiums are. 

CWAL_2

tacpot12 said:

I can't see that they are doing anything wrong if your had sight of both the insurers and the brokers terms before agreeing to take the insurance. 

They are allowed to decline to insure you at a new address because the risk has changed. You might believe your new area is safer, but they might have data to show that it is not. You could challenge them to so show this and complain to the Insurance Ombudsman if they can't.

Do you have any option to leave your car at the old address? 

Thank you, very helpful. I will ask them to show this.

Sandtree

CWAL_2 said:
Thank you, very helpful. I will ask them to show this.

I would be happy to bet that they will refuse your quest.

Ultimately going to the FOS is expensive for a company, once they've exhausted their free cases, and so some will uphold a complaint not because they think the customer is right but because its not cost effective to fight as the fees are payable win or lose. Others take a less commercial view and will pay £700 to the FOS to avoid paying an unjustified complaint about £50.

There are a few small areas where the FCA and therefore the FOS are talking interests in pricing but outside of those regulators don't want to get involved in the decisions on pricing and risk rating... doesn't take long if the regulator does start moving into these areas that insurers start litigating saying they've made losses because the regulator has required them to take on risks they didn't want to.