CAR INSURANCE CANCELLED WITH NO FAULT ACCIDENT

Lorian

I have a current claim with Tesco for a 3rd party running in to me. It's over 90 days old. The other party have not paid yet. Tesco gave me 90 days (I think it was 90 days) to add a new car to the policy or it would be terminated. I added a new car and paid the premium difference, insurance still in place.

I suggest she talks to the claims handlers with you rather than the insurance arm to understand what's going on.  The number is on their website - different number just for claims. It's also detailed in the very first email she will have to after raising the claim. 

I should add even if the other party never pays it's not going to result in my policy being cancelled.

My position slight different in that I pay annually so had no premiums outstanding...

Woodstok2000

But TBH, I wonder if you have misunderstood...

Why would your daughter owe Tesco £300 as a result of the 3rd party insurers failing to pay around £8k within 90 days?

If she's paying monthly, as soon as the policy is terminated/cancelled, she owes the full amount (or any relevant cancellation costs depending on the insurance T&Cs).

soolin

Above post from OP seems to be a complete repost of 1st post on this thread. 

Bobby4puddings

Just a bit of an update from my daughter. She was very brief as she was at work.
She phoned Tesco again only this time spoke to the claimas dept, she said they were far more helpful than whichever dept it was she spoke to before. They had her file and told her the other insurance party admitted liabilty. Tesco have then paid my daughter £8k for the written off car which she accepted. The other insurance are now questioning that figure and will not pay it to Tesco. (I didnt know they did it that way). They are in negotiations. The letter did say the insurance was "cancelled" but it was because the car doesnt belong to her anymore. They said she does not need to declare this on any other policy she may open. (I thought the word should be teminated not cancelled)
They also said its common for it to go over the 90 day limit and not to worry about it, also that it could take months!
Plus my daughter did tell DVLA the car was written off and she is no longer the owner, she has correspodence from them confirming this.
It was only a very quick call with her I will speak to her properly tonight.
But thanks everybody for there imput, it has been very helpful.

sheramber

Bobby4puddings said:

Just a bit of an update from my daughter. She was very brief as she was at work.
She phoned Tesco again only this time spoke to the claimas dept, she said they were far more helpful than whichever dept it was she spoke to before. They had her file and told her the other insurance party admitted liabilty. Tesco have then paid my daughter £8k for the written off car which she accepted. The other insurance are now questioning that figure and will not pay it to Tesco. (I didnt know they did it that way). They are in negotiations. The letter did say the insurance was "cancelled" but it was because the car doesnt belong to her anymore. They said she does not need to declare this on any other policy she may open. (I thought the word should be teminated not cancelled)
They also said its common for it to go over the 90 day limit and not to worry about it, also that it could take months!
Plus my daughter did tell DVLA the car was written off and she is no longer the owner, she has correspodence from them confirming this.
It was only a very quick call with her I will speak to her properly tonight.
But thanks everybody for there imput, it has been very helpful.

What is the £300 payment for?

Lorian

Payment for the balance of the policy i would expect which would be due. If you make a claim you have to continue to pay for the policy for the whole year even if you car is written off in the first week
I added a new car to my policy within a couple of weeks to carry on using the policy for the remaining months as it was paid for (I had to pay a small uplift as it was a more expensive car)

Things may have been complicated by Tesco making major account authorisation changes a few weeks ago. I can no longer log into the claims portal but the staff are helpful on the phone.

One more thing for the OP if she buys a new car now and wants to insure it she will have to say it's an at fault claim until the 3rd party pays. If you get quotes from confused.com they are least allow you to say "claim not settled" but you still pay the same as 'at fault'.

TheComplaintGuy

A cancellation after a non-fault accident is unusual, so it’s worth getting some clarity from the insurer rather than guessing what’s happened. A few things can trigger this kind of decision, but the important part is understanding the reason and whether they’ve followed the correct process.

Here are the main points to pin down:

1. Ask the insurer for the exact underwriting reason recorded on your file for the cancellation. They have to tell you this. Sometimes it’s a system flag, sometimes it’s a reassessment of risk after the accident, and occasionally it’s an error.

2. Check whether they have marked the claim as non-fault on the CUE database (the industry claims database). If it’s been entered incorrectly, that can cause issues with premiums elsewhere and is worth correcting now rather than later.

3. Ask the insurer to confirm in writing whether:

   • the cancellation will be shown as “cancelled by insurer” on your record

   • this will affect future quotes

   • there is any adverse marker or note attached to your policy history

This matters because other insurers may ask if you’ve ever had a policy cancelled, and the wording needs to be accurate.

1. If the cancellation decision doesn’t make sense, or the insurer won’t give you a clear reason, you can raise a formal complaint. They must respond within set timescales, and if you’re not satisfied, the Financial Ombudsman can review it. Insurers generally take cancellations seriously because of the impact on customers.

2. It doesn’t sound like you’ve done anything wrong here, so getting the insurer to explain their reasoning is the first step. Once you know the recorded reason, people here can help you work out whether it’s fair or if it should be challenged.

If you can share the wording the insurer used when they told you the policy was being cancelled, it will be easier to work out what’s happened.

dunstonh

Here are the main points to pin down:

None of which apply as the OP has already confirmed the position and it was what was expected in this scenario.

soolin

TheComplaintGuy said:

A cancellation after a non-fault accident is unusual, so it’s worth getting some clarity from the insurer rather than guessing what’s happened. A few things can trigger this kind of decision, but the important part is understanding the reason and whether they’ve followed the correct process.

Here are the main points to pin down:

1. Ask the insurer for the exact underwriting reason recorded on your file for the cancellation. They have to tell you this. Sometimes it’s a system flag, sometimes it’s a reassessment of risk after the accident, and occasionally it’s an error.

2. Check whether they have marked the claim as non-fault on the CUE database (the industry claims database). If it’s been entered incorrectly, that can cause issues with premiums elsewhere and is worth correcting now rather than later.

3. Ask the insurer to confirm in writing whether:

   • the cancellation will be shown as “cancelled by insurer” on your record

   • this will affect future quotes

   • there is any adverse marker or note attached to your policy history

This matters because other insurers may ask if you’ve ever had a policy cancelled, and the wording needs to be accurate.

1. If the cancellation decision doesn’t make sense, or the insurer won’t give you a clear reason, you can raise a formal complaint. They must respond within set timescales, and if you’re not satisfied, the Financial Ombudsman can review it. Insurers generally take cancellations seriously because of the impact on customers.

2. It doesn’t sound like you’ve done anything wrong here, so getting the insurer to explain their reasoning is the first step. Once you know the recorded reason, people here can help you work out whether it’s fair or if it should be challenged.

If you can share the wording the insurer used when they told you the policy was being cancelled, it will be easier to work out what’s happened.

It might pay to read the rest of the thread are there are a few issues that make your response a bit premature. Always best to find out exactly what has happened especially as we are getting the story third hand and bit by bit, before going in all guns blazing. A lot of points you raise have already been addressed. 

MyRealNameToo

TheComplaintGuy said:

A cancellation after a non-fault accident is unusual

Utter nonsense... the car was a total loss, what would they be insuring if they allowed the policy to continue @TheComplaintGuy? They gave the OP 90 days to acquire a new vehicle to transfer the policy to but they got a company car instead so you can't continue a policy indefinitely insuring nothing.