AA Car insurance cancelled - due to missing their NCD proof request.

devondiver

On 11th February I started a policy with AA Insurance paid in full in advance. Yesterday I received in the post a letter dated 4th March telling me that unless I sent them my NCD proof (such as my renewal notice from my previous insurer) by 11th March my policy would be cancelled on this date - ie.11 days ago!

My reaction is as detailed in the email I hurriedly banged out as follows:

"Dear Sir/Madam

URGENT: Policy number: AAMOBRxxxx  Customer ID: 4346xxx

Following receipt yesterday of your letter dated 04/03/2025 and titled “Final reminder – don’t forget to send proof of your no claims discount before 11/03/2025” I am attaching said NCD proof as requested. Your letter goes on to say: “Don’t forget to send us proof of your no claims discount before 11/03/2025. If you don’t your cover will be cancelled on 11/03/2025.”

Please note that, although your letter is titled “Final reminder”, this is the first and only notification of any kind that I have received from you which warns that I must provide NCD proof to you otherwise my policy will be cancelled.

On reading your letter this morning my first action was to call your telephone helpline whereupon I had a long conversation with “Liam” who informed me that my policy had been unilaterally cancelled and that he was unable to re-instate it.

This situation is very plainly unsatisfactory. Liam informed me that emails had been sent to my registered email address but I have checked all my inboxes and nothing has been received from you. Liam was unable to explain this - nor why the only letter to be sent out (dated 04/03/2025!) was not received by me until 21/03/2025 – which was too late to be of any help in the situation.

Liam pointed out to me that the covering letter to the document pack I received via email from Laura Pendleton on 11/02/2025 states that “we need proof of no claims discount”. This I accept that I had somehow overlooked – but nowhere does it say that my policy will be cancelled if I fail to provide this NCD proof within a certain time. Furthermore, my feeling that there was nothing more I needed to do (in order for my policy to continue) was backed by the bold heading of the letter “You’re covered” – followed up a few days later by the only other email received from you which gave my policy number and the message – “Hello Mr Xxxxxx, Now you’ve got car insurance with us, you can relax knowing that whatever happens, we’re here for you 24/7.”

The foregoing gave support to my confidence that, in this day and age of advanced insurance database systems and information sharing, there was nothing more I needed to do. And that if indeed there was – then you would quickly have communicated this to me by email – which your systems seemed to be able to handle okay as illustrated by the two emails I had successfully already received from you.

So I reiterate that, apart from the single letter I received from you yesterday (21/03/2025) warning that my policy may be cancelled on 11/03/2025 (ten days previously!), I have received no notification or warning of the impending cancellation. This has resulted not only in me unknowingly driving uninsured since 11/03/2025 but that I will doubtless now be put to additional inconvenience and expense in order to recover the situation.

This is plainly most unsatisfactory and I fully intend to issue a formal complaint to the Financial Ombudsman Service and to consider the issue of proceedings for breach of contract.

Therefore, notwithstanding the above, I urgently request that you find a way of reinstating my car insurance cover at the earliest opportunity and on similar terms to those originally agreed. I look forward to your urgent reply and state that I am willing to provide any cooperation and details which you may require in order to rapidly correct this unfortunate situation.

Yours sincerely,"

Sorry it drags on a bit but I hope you get the picture. Any helpful comments will be most gratefully received, although I realise the most useful aspect of this tale may just be as a warning to others. 

Perhaps ironically the (automated) response I received states - "rest assured that your policy will remain active until we process your email" ! What am I to think of that!?

dunstonh

This situation is very plainly unsatisfactory. Liam informed me that emails had been sent to my registered email address but I have checked all my inboxes and nothing has been received from you. Liam was unable to explain this - nor why the only letter to be sent out (dated 04/03/2025!) was not received by me until 21/03/2025 – which was too late to be of any help in the situation.

did you check your spam folder or do you use an email provider that automatically deletes and doesn't show what it thinks is spam?

Normally, if you buy online, email becomes the primary communication method.

This is plainly most unsatisfactory and I fully intend to issue a formal complaint to the Financial Ombudsman Service and to consider the issue of proceedings for breach of contract.

You don't have the right of access to the FOS at this point. 

And let's be clear: it is you who is in breach of contract for failing to provide evidence of NCD despite admitting that you knew you had to.  Stick to the real reason for the complaint and don't divert to legal speak (especially when you are wrong in that respect).

Remember that if you insure elsewhere, you need to declare that an insurer has voided the policy.    Given the importance of timing, you probably want to take this to phone with the complaints team on Monday rather than rely on email and the 8 week period they have to resolve it before you then get access to the FOS.

devondiver

dunstonh said:

did you check your spam folder or do you use an email provider that automatically deletes and doesn't show what it thinks is spam?

Yes. I check daily for spam, of which I have much, and all other folders. I have used BTInternet for ever and have checked settings etc to try to figure out what could be wrong. As stated - two AAI emails have reached me successfully. Anything else from AAI (I have no trouble with all other correspondence - afaik) has dissappeared into the ether without trace. (Also note that I received an immediate automated email response when I messaged them yesterday).

dunstonh said:

You don't have the right of access to the FOS at this point. 

I understand. "Liam" said he would raise a complaint, after which I will have FOS access (after 8 weeks!)

dunstonh said:

And let's be clear: it is you who is in breach of contract for failing to provide evidence of NCD despite admitting that you knew you had to.

Debatable. Nowhere was it made clear that there was a contractual obligation to provide NCD proof within a certain timeframe and that failure to comply would result in immediate cancellation (although I have litttle doubt that this will be contained somewhere in the T & Cs). Consequently I was unaware that this was a specific requirement to prevent cancellation. And, as stated, it was not unreasonable to assume that the required information (NCD proof) was available via industry database (as I am fairly sure has been the case at times in the past with my own car insurances).

dunstonh said:

 Stick to the real reason for the complaint 

Which is? Failure to make clear, in their initial documentation, that the policyholder was contractually required to take action and to warn of the consequence of failure to provide NCD proof within a certain timeframe? Failure to ensure that I had received the implied reminders? Failure, when no response was forthcoming, to send (by post) a reminder? Failure to give notice of impending cancellation and to take reasonable measures to ensure that I was aware? Failure to notify me that cancellation had taken place (until 10 days after the event)? What have I missed?

dunstonh said:

Remember that if you insure elsewhere, you need to declare that an insurer has voided the policy. 

I see this is discussed elsewhere and wonder if there is an agreed answer on this which fits this situation?

dunstonh said:

Given the importance of timing, you probably want to take this to phone with the complaints team on Monday rather than rely on email and the 8 week period they have to resolve it before you then get access to the FOS.

Sound advice, thank you. When I called yesterday I don't think Complaints was one of the options - but I will try. I just feel I need to be well-primed with my arguments.

DullGreyGuy

devondiver said:

dunstonh said:

did you check your spam folder or do you use an email provider that automatically deletes and doesn't show what it thinks is spam?

Yes. I check daily for spam, of which I have much, and all other folders. I have used BTInternet for ever and have checked settings etc to try to figure out what could be wrong. As stated - two AAI emails have reached me successfully. Anything else from AAI (I have no trouble with all other correspondence - afaik) has dissappeared into the ether without trace.

dunstonh said:

You don't have the right of access to the FOS at this point. 

I understand. "Liam" said he would raise a complaint, after which I will have FOS access (after 8 weeks!)

dunstonh said:

And let's be clear: it is you who is in breach of contract for failing to provide evidence of NCD despite admitting that you knew you had to.

Debateable. Nowhere was it made clear that there was a contractual obligation to provide NCD proof within a certain timeframe and that failure to comply would result in immediate cancellation (although I have litttle doubt that this will be contained somewhere in the T & Cs). Consequently I was unaware that this was a specific requirement to prevent cancellation. And, as stated, it was not unreasonable to assume that the required information (NCD proof) was available via industry database (as I am fairly sure has been the case at times in the past with my own car insurances).

dunstonh said:

 Stick to the real reason for the complaint 

Which is? Failure to make clear, in their initial documentation, that the policyholder was contractually required to take action and to warn of the consequence of failure to provide NCD proof within a certain timeframe? Failure to ensure that I had received the implied reminders? Failure, when no response was forthcoming, to send (by post) a reminder? Failure to give notice of impending cancellation and to take reasonable measures to ensure that I was aware? Failure to notify me that cancellation had taken place (until 10 days after the event)? What have I missed?

dunstonh said:

Remember that if you insure elsewhere, you need to declare that an insurer has voided the policy. 

I see this is discussed elsewhere and wonder if there is an agreed answer on this which fits this situation?

dunstonh said:

Given the importance of timing, you probably want to take this to phone with the complaints team on Monday rather than rely on email and the 8 week period they have to resolve it before you then get access to the FOS.

Sound advice, thank you. When I called yesterday I don't think Complaints was one of the options - but I will try. I just feel I need to be well-primed with my arguments.

You can go to the FOS after you have received the company's final response or 8 weeks, whichever is sooner (which is almost always their final response)

The T&Cs won't have that you must provide the NCD but will be caught in a broader term about providing information or assistance as requested by them without undue delay. 

Since I left dealing with mass market consumer insurance an NCD database for Motor has been created however its not mandatory for insurers to use it or update it and whilst I've not seen the design of the db its clearly going to be fairly hit or miss in the absence of your NCD being given a specific ID which you have to supply when buying insurance and even then that would only work if the db became mandatory. 

The answer to the "have you had insurance cancelled, voided or special terms applied" is simply "yes". Many insurers will then simply decline to quote. Some will go on to ask further questions, its almost certainly the case of selecting answers from drop down menus because most sales are done online and for the minority done on the phone the call centre agents have zero authority on underwriting decisions so just match your answer to their drop down. 

Complaints teams dont typically take the initial registration of the complaint, they pick it up from the standard teams after it's been registered. 

devondiver

DullGreyGuy said:

Complaints teams dont typically take the initial registration of the complaint, they pick it up from the standard teams after it's been registered. 

So does that mean that this -

dunstonh said:

- you probably want to take this to phone with the complaints team on Monday rather than rely on email and the 8 week period they have to resolve it before you then get access to the FOS.

- is probably not an option? I would certainly prefer to get it sorted asap - as I am prepared to not use my car for a short time rather than go through the rigmarole and expense of starting another policy, if at all possible.

TELLIT01

Any time I have changed car insurance I have been asked for proof of NCD, generally in an e-mail after taking out the insurance.  Most likely situation would seem to be that e-mail getting lost in the system somewhere. Their comment about final reminder suggests more than one request.  As the OP has acknowledged they have received some communications it's going to be hard to prove they simply didn't respond.

Grumpy_chap

It is entirely usual that car insurers require proof of NCD to be provided within a month of the policy starting.  The quote is provided on a "trust" basis and the validation is undertaken after the policy has been taken out.  If the NCD was not validated, the system would be open to abuse.  Some insurers are able to validate within the insurance system (often when it is the same insurer under a different brand) while other insurers request the proof to be provided by the policy holder.

For the AA, it is even in their FAQ:
https://www.theaa.com/car-insurance/ppc?AffinityID=MGOOGLEPRODUCTBRAND&source=Google&ito=87770&gad_source=1&gclid=EAIaIQobChMIt5e-itegjAMVWpVQBh0krRYgEAAYASAAEgIwzvD_BwE&gclsrc=aw.ds#Noclaimsdiscount


Regardless, the OP confirmed they did receive and failed to act on the request for the information from AA:

devondiver said:

Liam pointed out to me that the covering letter to the document pack I received via email from Laura Pendleton on 11/02/2025 states that “we need proof of no claims discount”. This I accept that I had somehow overlooked 

devondiver

Grumpy_chap said:

It is entirely usual that car insurers require proof of NCD to be provided within a month of the policy starting.  The quote is provided on a "trust" basis and the validation is undertaken after the policy has been taken out.  If the NCD was not validated, the system would be open to abuse.

This is a given, and not questioned in any way.

Some insurers are able to validate within the insurance system - while other insurers request the proof to be provided by the policy holder.

This is my point - as illustrated by the comparison sites' statement that "the proposer may be required" (IIRC) to provide the necessary NCD proof - as opposed to it being obtained within the system.

It follows, therefore, that it is perfectly reasonable that the proposer/policyholder then awaits clarification as to whether or not they are required to provide this proof themselves - which, incidentally, is probably more open to abuse (forgery) than a 'within industry' validation (which surely the industry must be moving towards).

Regardless, the OP confirmed they did receive and failed to act on the request for the information from AA:

Agreed - the AA covering letter (to the emailed document pack) included the bold subheading "We need proof of your no claims discount" - which, as stated, is obvious. It does not however make it clear that the only way to achieve this is for the policyholder to provide it to them; and neither does it mention the consequence of failing to provide this within a certain time (ie. unilateral cancellation).

I know this is rather labouring the point but I do believe it is perfectly arguable that the policyholder, who may well be unfamiliar with current industry practices, could expect - a) a clear and unambiguous instruction that they 
themselves must  provide the NCB proof; b) a clear indication of the consequence of failure to do this; c) at least one reminder to act; d) a written warning of imminent cancellation; and e) a notification that the policy is cancelled.

In other words - clear and unambiguous communication could easily have avoided this situation - which is doubtless at least partly due to failures in email system/s - failures which could easily have been overcome by timely use of the land mail system and/or telephone voice or messaging systems. 

Instead, AA Insurance, having issued their edict, simply ploughed ahead with cancellation without (afaik) seeking to clarify whether I understood what was required or whether I had received any of their (implied) reminders etc.

And remember - the single letter informing me of impending cancellation on 11th March carried a date of 4th March but had no postmark verification - and was delivered to me on 21st March. Which any rational person would find simply not credible.

400ixl

On the other hand I have not had to provide proof of NCD for over a decade and change insurer most years. They get it off of the shared database, but then I tend not to use bottom dwelling insurers who don't share the data or are looking for reasons to up the premium post contract start.

However, if I have ever bee asked for it, it has always been via email. I conciously look out for such emails in the month following the contract start.

Also if the OP has so many spam emails they can miss things then they need to be sorting their email regime out and unsubscribing or filtered spam that can't be unsubscribed.

sheramber

devondiver said:

Grumpy_chap said:

It is entirely usual that car insurers require proof of NCD to be provided within a month of the policy starting.  The quote is provided on a "trust" basis and the validation is undertaken after the policy has been taken out.  If the NCD was not validated, the system would be open to abuse.

This is a given, and not questioned in any way.

Some insurers are able to validate within the insurance system - while other insurers request the proof to be provided by the policy holder.

This is my point - as illustrated by the comparison sites' statement that "the proposer may be required" (IIRC) to provide the necessary NCD proof - as opposed to it being obtained within the system.

It follows, therefore, that it is perfectly reasonable that the proposer/policyholder then awaits clarification as to whether or not they are required to provide this proof themselves - which, incidentally, is probably more open to abuse (forgery) than a 'within industry' validation (which surely the industry must be moving towards).

Regardless, the OP confirmed they did receive and failed to act on the request for the information from AA:

Agreed - the AA covering letter (to the emailed document pack) included the bold subheading "We need proof of your no claims discount" - which, as stated, is obvious. It does not however make it clear that the only way to achieve this is for the policyholder to provide it to them; and neither does it mention the consequence of failing to provide this within a certain time (ie. unilateral cancellation).

I know this is rather labouring the point but I do believe it is perfectly arguable that the policyholder, who may well be unfamiliar with current industry practices, could expect - a) a clear and unambiguous instruction that they 
themselves must  provide the NCB proof; b) a clear indication of the consequence of failure to do this; c) at least one reminder to act; d) a written warning of imminent cancellation; and e) a notification that the policy is cancelled.

In other words - clear and unambiguous communication could easily have avoided this situation - which is doubtless at least partly due to failures in email system/s - failures which could easily have been overcome by timely use of the land mail system and/or telephone voice or messaging systems. 

Instead, AA Insurance, having issued their edict, simply ploughed ahead with cancellation without (afaik) seeking to clarify whether I understood what was required or whether I had received any of their (implied) reminders etc.

And remember - the single letter informing me of impending cancellation on 11th March carried a date of 4th March but had no postmark verification - and was delivered to me on 21st March. Which any rational person would find simply not credible.

failures which could easily have been overcome by timely use of the land mail system and/or telephone voice or messaging systems. 

Really?

the single letter informing me of impending cancellation on 11th March carried a date of 4th March but had no postmark verification - and was delivered to me on 21st March

devondiver

400ixl said:

Also if the OP has so many spam emails they can miss things then they need to be sorting their email regime out and unsubscribing or filtered spam that can't be unsubscribed.

The OP (me) confirms that he receives relatively few spam emails and is absolutely certain that no relevant emails have been received and missed. 100%.

PS - are AA Insurance "bottom-dwellers"?