Car Insurance Application Denied

Dr._Zoidberg

Hello,

I applied for an insurance quote today which was provided, when I attempted to purchase it, I received a message saying “based on the information provided, we are unable to insure you” (or words similar to that). I telephoned the insurer and they couldn’t give me a reason for it although could see it had been declined. They did say that I would be able to obtain cover through another insurer.

My question, is this me being refused insurance and require to declare this or is it an underwriting decision where they don’t like the risk (which is not required to be declared I believe). There is genuinely no incorrect information on the application nor any undeclared claims etc.

Any help would be appreciated as I’m having a mild panic that I’m now uninsurable and might have my new policy declared null and void!

Many thanks

maman

No, as they told you, you're free to go to another insurer and you don't have to declare it.

You or your car probably just don't fit the profile they're aiming at. It's not the same as being cancelled just they are choosing not to offer you a policy.

Dr._Zoidberg

That’s grand, thank you. They’d provided a quote but it was at the application stage that it was declined, so this is ok in that I don’t require to declare it as them refusing to insure?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81936047#Comment_81936047

For the 3rd time, yes.

Dr._Zoidberg

https://forums.moneysavingexpert.com/discussion/comment/81936048#Comment_81936048

Genuinely sorry, I know it sounds stupid, it’s just I’m confused by the whole “have you been refused…insurance” aspect, which is what I thought I had been. If it is that being declined at the application stage is not a refusal, that’s fine. That’s where my confusion lay. Apologies for being a bit thick on it.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81936051#Comment_81936051

The question stems from pre internet days… in the good old days you'd go to your broker who would do quotes by using the rate tables and terms the insurers sent out every month. Assuming you bought from them they would give you a cover note that confirmed you had insurance in place for a couple of weeks and then post off the paperwork to the insurer who would review the application and normally then send the broker your certificate of insurance.

Sometimes the insurer would find something the broker missed and so decline the insurance. Your broker would then have to request that you return the cover note (though by this point it will be expiring soon anyway) and either they would rebroke the policy or refund you the premiums. Insurers wanted to know that there is a history of brokers saying you're good to go but insurers finding problems.

la531983

Also, if you use a comparison site you will also find a whole host of them will "refuse" to give you a quote, listed at the bottom of the list underneath (usually) the most expensive. Its perfectly normal.

Dr._Zoidberg

https://forums.moneysavingexpert.com/discussion/comment/81936286#Comment_81936286

That’s very insightful and thank you for that information, it makes sense. I did see that some insurers don’t ask about declined insurance but just cancelled or voided, which may be as a result of what you have said?

https://forums.moneysavingexpert.com/discussion/comment/81936354#Comment_81936354

It was a comparison site I used to get the quotes, however it was at the point of accepting a quote and attempting to purchase it that I received the declination. It was instant. I just found it odd that they’d offer a quote then instantly decline it.

I’m still a little worried that I have a black mark against name but based on what I’m seeing here I probably don’t? Should I contact the insurers that I tried to purchase from to see if they can give a written reason as to what’s happened or am I likely okay? Just not wanting to have a mark for dishonesty/fraud! Especially as I’m practically in one of the lowest risk group (multiple years of no claims, no convictions/points, no cancelled policy etc)

As I say, I do apologise for being a bit daft and panicky but never had this happen in decades of driving!