Learner car insurance cancelled by insurer

TooManyPoints

This is not the same as buying a typical annual policy and it then being cancelled mid term for dishonesty either in obtaining or claiming, which is when cancellation really has an impact.

One would like to think so. However, I’m not so confident.

A while ago a thread on here discussed the cancellation of a policy where it had been “auto-renewed”. The policyholder had taken out cover with another provider and had neglected to inform his current insurer that renewal was not required. The policy was renewed (as per the policy’s Ts&Cs) and then cancelled a short time afterwards when payment could not be secured.

I think the consensus then was that the policyholder had suffered the cancellation of a policy and that it must be disclosed whenever he was asked.

I found this a little disturbing as the cancellation of a policy (especially one providing motoring cover) can have a profound effect on future proposals and it effectively lasts for life.

It seems inappropriate to class the end of cover of “Learner” insurance as a cancellation. It is more a termination of cover similar in nature to when a policyholder dies. But if it is considered as such, I don't know that there is anything to differentiate between that and a cancellation where the policyholder has been dishonest.

Perhaps one of our insurance experts can say whether there are different “grades” of cancellation.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81862397#Comment_81862397

Its dependent on the terms of the policy but its very standard practice with "learner" policies; obviously if you buy a full fat policy from the outset that just happens to be covering a learner driver then it doesnt end but you will have to tell the insurer as soon as is practicably possible and be ready for a large increase in the premiums.

WobblyBitsGalore

@daveyjp it was an "annual learner policy" for 12 months as I thought it would be simpler and cheaper, and they offered partial refunds if cancelled during that time. My son passed his test during the last month of the policy so no refund anyway (which is partly why it wasn't thinking about it at the time…)

"she passed her test and the policy was 'cancelled'"…yes my understanding is that even if notified immediately on the phone that's effectively what they will say, that it has to be cancelled or that it is an automatic cancellation, etc.

They check with DVSA, too, since in my son's case that's how they got notified after only 8 days.

@HillStreetBlues , it was with Collingwood. Yes there was a cancellation fee that they collect in any case, and looking at their reviews on Trustpilot it seems not clear to many people (I really didn't know) judging by how many people complain that they called to say that they had passed their test only to be told that the policy had to be cancelled and that this was £40. They only do learner insurance as far as I know so are not interested in selling you a standard policy afterwards.

And, yes, T&Cs say that they must be notified immediately because cover becomes "invalid".

HillStreetBlues

https://forums.moneysavingexpert.com/profile/WobblyBitsGalore

Seems I was wrong, the ombudsman sides with Collingwood as it's in the contract.
I have to say I find it very strange as most normal insurance will run for the year and not need cancelling, this type of insurance would be the polar opposite.

Arunmor

https://forums.moneysavingexpert.com/discussion/comment/81867452#Comment_81867452

It is not strange, they cover supervised learners only. Once the test is passed the driver is no longer a learner which is a material change. If they didn't offer this insurance the price would be in the thousands.

I used Collingwood for my youngest and was very pleased with the service and price and was fully aware that you cancelled when test was passed.

WobblyBitsGalore

@Arunmor , sure but life happens… In our case it's 8 days after test, they quickly found out themselves via DVSA, and they called without leaving a message and immediately cancelled afterwards.

@HillStreetBlues , I think in that case the person was being a bit of a d*ck, though, even refused to cancel in order to argue about the cancellation fee (if that's the same case as I've found).

I am not questioning the cancellation: If it needs to be cancelled then it needs to be cancelled. But it seems to me that it makes no difference either way. If you notify them they cancel, if they get notified through DVSA, they cancel. End result is always cancellation. Even the reason for cancellation is not in anyway wrongdoing as it is explicitely "driving test is passed".

It looks like a good start may be to carefully contact the insurance to ask them what their take is.

WobblyBitsGalore

[ Cross posted from Motoring if that's OK: Link ]

Hi,

so we got an annual learner car insurance for my son so that he could practice with me in my car. Fast forward a few months, he had just started uni and had to miss a day and come back home just for that day to take his driving test (in instructor's car), which he passed. With all the stress and hectic day he forgot to notify the learner insurance before heading back to uni.

8 days later he got a single missed phone call for them, no message, and then a nice letter congratulating him for passing his driving test (they check with DVSA apparently)… and that the insurance must be cancelled when driving test is passed so that they did.

Didn't think much of it at the time in October (insurance must be cancelled after passing driving test so it is cancelled, all good, right?) but now, having looked for temporary insurace during holidays earlier this month, I am worried about potential adverse consequences…

I am a bit lost about how to approach and handle this so would very much appreciate help.

dunstonh

It is unclear what you are worried about.

He took out learner insurance which ended when he passed. All good there. That is not a cancellation in insurance speak. So,nothing to worry about there.

So, what is it that you are worried about?

WobblyBitsGalore

@dunstonh , thanks for your reply. Well my understanding is that while the policy became invalid the instant the test was passed it still needed to be ended by "cancellation", which the insurer did, and they used the term "cancelled" in their letter (although reason was indeed only that the driving test was passed).

So what I am now worried about is whether this is indeed a "cancellation in insurance speak" and any potential adverse consequences, although to me it initially sounded simply administrative: policy had to be cancelled so it was. I get my son forgot to immediately notify them of his passing his driving test, but it seems to me that if he had the result would have been the same just 8 days earlier…

soolin

2 identical threads merged