XSDirect saying I owe them £51,000 !!!!!

ariyanxh

Grumpy_chap said:

OP - what was the start date of the insurance policy?
What was the date of the accident?

Start date was around August 2017
accident was jan 2018 

ariyanxh

born_again said:

Our Insurance services include the sale of XS Direct car insurance underwritten by Calpe Insurance Company Ltd, Alwyn Insurance Company Limited & Watford Insurance Company (Europe) Limited. We are not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertaking and we do not give advice on the basis of a fair analysis of the market. We are remunerated by commission and fees. We reserve the right to charge fees for policy set-up, policy adjustments, premium refunds and any administrative tasks. The individual fee for each of these services is £40. In the event that you decide not to go ahead with a policy (once it has commenced), a non refundable administration fee of £40 will apply. On payment by credit card, an additional charge of 1.7% will apply which covers the charges to us from the bank for the use of this facility. 

Nice to see they are breaking the law on charging extra for using a Credit Card. Unless these are all business policies.

T/C also make no mention of their ability to cancel a policy. 

Was level was the policy?
Full Comp, TP,FT or just 3rd party? Given you were not claiming for your car.

It was fully comprehensive 

Sea_Shell

ariyanxh said:

born_again said:

Our Insurance services include the sale of XS Direct car insurance underwritten by Calpe Insurance Company Ltd, Alwyn Insurance Company Limited & Watford Insurance Company (Europe) Limited. We are not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertaking and we do not give advice on the basis of a fair analysis of the market. We are remunerated by commission and fees. We reserve the right to charge fees for policy set-up, policy adjustments, premium refunds and any administrative tasks. The individual fee for each of these services is £40. In the event that you decide not to go ahead with a policy (once it has commenced), a non refundable administration fee of £40 will apply. On payment by credit card, an additional charge of 1.7% will apply which covers the charges to us from the bank for the use of this facility. 

Nice to see they are breaking the law on charging extra for using a Credit Card. Unless these are all business policies.

T/C also make no mention of their ability to cancel a policy. 

Was level was the policy?
Full Comp, TP,FT or just 3rd party? Given you were not claiming for your car.

It was fully comprehensive 

Why did you not pursue (chase) the claim if it also should have covered your own car?

I asked before but I think it got missed, how much was your car worth?  Under the £3000 excess?


As I understand it, if your car was worth less than £3000, you have effectively already "paid" your excess, by not having any residual benefit of the comprehensive cover.  But you shouldn't also then have an excess to pay for the TP claim element.

Eg. If your car was worth £4000, and written off, you should've received £1000.

If your car was only worth £2000, then you still "owe" £1000 excess, against the TP claim.

If no TP had been involved, you are basically "self insuring" up to £3000.

I hope that makes sense.

ariyanxh

Sea_Shell said:

ariyanxh said:

born_again said:

Our Insurance services include the sale of XS Direct car insurance underwritten by Calpe Insurance Company Ltd, Alwyn Insurance Company Limited & Watford Insurance Company (Europe) Limited. We are not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertaking and we do not give advice on the basis of a fair analysis of the market. We are remunerated by commission and fees. We reserve the right to charge fees for policy set-up, policy adjustments, premium refunds and any administrative tasks. The individual fee for each of these services is £40. In the event that you decide not to go ahead with a policy (once it has commenced), a non refundable administration fee of £40 will apply. On payment by credit card, an additional charge of 1.7% will apply which covers the charges to us from the bank for the use of this facility. 

Nice to see they are breaking the law on charging extra for using a Credit Card. Unless these are all business policies.

T/C also make no mention of their ability to cancel a policy. 

Was level was the policy?
Full Comp, TP,FT or just 3rd party? Given you were not claiming for your car.

It was fully comprehensive 

Why did you not pursue (chase) the claim if it also should have covered your own car?

I asked before but I think it got missed, how much was your car worth?  Under the £3000 excess?


As I understand it, if your car was worth less than £3000, you have effectively already "paid" your excess, by not having any residual benefit of the comprehensive cover.  But you shouldn't also then have an excess to pay for the TP claim element.

Eg. If your car was worth £4000, and written off, you should've received £1000.

If your car was only worth £2000, then you still "owe" £1000 excess, against the TP claim.

If no TP had been involved, you are basically "self insuring" up to £3000.

I hope that makes sense.

At the time I valued my car at around £3500. I believe they estimated the value to be around 2.5k so I wasn’t owed any money myself.

Sea_Shell

ariyanxh said:

Sea_Shell said:

ariyanxh said:

born_again said:

Our Insurance services include the sale of XS Direct car insurance underwritten by Calpe Insurance Company Ltd, Alwyn Insurance Company Limited & Watford Insurance Company (Europe) Limited. We are not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertaking and we do not give advice on the basis of a fair analysis of the market. We are remunerated by commission and fees. We reserve the right to charge fees for policy set-up, policy adjustments, premium refunds and any administrative tasks. The individual fee for each of these services is £40. In the event that you decide not to go ahead with a policy (once it has commenced), a non refundable administration fee of £40 will apply. On payment by credit card, an additional charge of 1.7% will apply which covers the charges to us from the bank for the use of this facility. 

Nice to see they are breaking the law on charging extra for using a Credit Card. Unless these are all business policies.

T/C also make no mention of their ability to cancel a policy. 

Was level was the policy?
Full Comp, TP,FT or just 3rd party? Given you were not claiming for your car.

It was fully comprehensive 

Why did you not pursue (chase) the claim if it also should have covered your own car?

I asked before but I think it got missed, how much was your car worth?  Under the £3000 excess?


As I understand it, if your car was worth less than £3000, you have effectively already "paid" your excess, by not having any residual benefit of the comprehensive cover.  But you shouldn't also then have an excess to pay for the TP claim element.

Eg. If your car was worth £4000, and written off, you should've received £1000.

If your car was only worth £2000, then you still "owe" £1000 excess, against the TP claim.

If no TP had been involved, you are basically "self insuring" up to £3000.

I hope that makes sense.

At the time I valued my car at around £3500. I believe they estimated the value to be around 2.5k so I wasn’t owed any money myself.

So if you've paid them all the annual premium due, you should only owe them another £500 max, being the balance of the £3000 excess.

It really is a shame you don't have all your paperwork.  I don't suppose they confirmed their valuation in writing?

Keep_pedalling

ariyanxh said:

olgadapolga said:

ariyanxh said:

Sea_Shell said:

Can you post up a copy of the insurer's cancellation letter?

Believe it or not the letters were disposed of only a few months ago. Lesson learnt. 

Could you not get a copy of all correspondence by making a subject access request to them?

I’d have an easier time drawing blood from stone. 

No, they have a legal obligation to provide it once you submit a SAR so do it without delay.

jimjames

It sounds like the OP is being pursued because of lack of co-operation with the claim rather than that the vehicle was not insured at the time of the accident. This is a common clause in most policies if you don't help them to recover costs from other parties who may have a liability. It's unrelated to the insurance being cancelled from what I can see.

Sea_Shell

jimjames said:

It sounds like the OP is being pursued because of lack of co-operation with the claim rather than that the vehicle was not insured at the time of the accident. This is a common clause in most policies if you don't help them to recover costs from other parties who may have a liability. It's unrelated to the insurance being cancelled from what I can see.

Yes, it could be that.

OP, at the time of the incident did you report it directly to your insurers?

Was this by phone?   Did you give them a brief summary of the incident at that time?

Did you admit liability at any time, either to the TP or to your insurers?

Or did your insurers only find out about the incident from the TP, and then failed to receive the requested claim forms from you?

ariyanxh

The accident occurred in Jan 2018. I admitted liability straight away. I reported it to them myself straight away on the same day on the phone.
Policy was cancelled shortly after as per the email I attached earlier.
Then in March I agreed to pay a small amount monthly to pay off the debt via a debt collection company. I was paying it for over a year then finally end of 2019 I paid off whatever was left from the debt according to the debt collection company.
Aside from the 2 weeks window to return the forms and some emails asking me to pay them what I was owed I received no other correspondence until a few days ago. That’s the entire timeline. 

Never at any point did they follow up on getting the forms from me.

Sea_Shell

When you say " I admitted liability straight away. ", was this at the scene of the accident, to the third party?