Car Insurance Cancellation

Grumpy_chap

It seems to me that in increasing the policy premium, they have altered a fundamental term of our contract and, as such, I should be able to cancel (or, more accurately, refuse the new terms) without penalty. Is this correct?

No.

I agree with A_D.

By not disclosing the two claims in your accident history, YOU changed a fundamental term of the contract and the insurer is entitled to cover the associated costs of the increased premium or cancel the policy without detriment to themselves.

Took out a car insurance policy with 1st Central on 6 July to commence on 23 July.

I realised during the insurance validation process on 11 August that my accident history on the car insurance comparison website used was not correct. As a result:

I had not disclosed a no fault claim from 2023 (which did not go through my insurer at all but which I notified them of); and

I listed a 2025 claim as a no fault when my previous insurer had actually recorded it as a fault claim (my parked car was hit by a driver that drove off and was never identified).

After I clarified the above with 1st Central they increased the policy premium by ~£250. I told them I wanted to cancel the policy as I did not accept the increased premium.

They are now saying I owe them £80 (being £40 cover, £50 policy set up fee and £50 cancellation fee less my £60 deposit).

It seems to me that in increasing the policy premium, they have altered a fundamental term of our contract and, as such, I should be able to cancel (or, more accurately, refuse the new terms) without penalty. Is this correct?

The letter makes it clear they will register a default with credit agencies if I fail to pay. Am I best just paying what they have requested or do I have grounds to refuse?

PTP123

I never understand when people complain about having to pay for fees when the company has obviously done some work.

I bet the OP doesn't work for free

Either way, they were the dishonest one

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82111365#Comment_82111365

Steady, no-one's alleging dishonesty here. Omission of relevant information covers it.

TheGreySection

There seems to be some nuance being lost here. I was not dishonest with the insurer. I inadvertently omitted details of an accident within the last 5 years (in relation to which I was not at fault and no claim was made to or via my insurer) and erroneously stated that the other accident within the last 5 years was no fault (which I genuinely thought it was given somebody crashed into my parked car and drove off). As soon as I realised this I told 1st Central as much.

I appreciate £80 might not be a lot of money to some of you but it is to others. I want to be sure that I am genuinely liable to pay the amount claimed as outstanding.

I'm surprised nobody has pointed out that this will all hinge on the actual wording of the contract of insurance with 1st Central. Having looked at the wording in more detail, the contract is clear that where I cancel the policy after 14 days the cancellation fee is £15. They are seeking to charge £50 (which is only payable where they cancel the policy). To be clear, the policy was cancelled at my request and not by the insurer so I don't think the amount they assert is outstanding is correct.

Grumpy_chap

Given that you need to keep your car insured, how does the premium from 1st Central (with the extra £250 added) compare to the premiums for changing elsewhere (with all history properly declared)?

Rather than pay the £80 cancellation and admin fees to 1st Central and then have to take insurance elsewhere, it may be more pragmatic to pay the £250 to 1st Central and keep the insurance in place, then shop around ahead of next year's renewal.

Alderbank

…I'm surprised nobody has pointed out that this will all hinge on the actual wording of the contract of insurance with 1st Central. Having looked at the wording in more detail, the contract is clear that where I cancel the policy after 14 days the cancellation fee is £15. They are seeking to charge £50 (which is only payable where they cancel the policy)…

You need to look at the wording in more detail.

In 'Important Information' the policy says

If your policy is cancelled after 14 days of your policy start date, a £15 cancellation fee will be applied unless the reason for cancellation is non-disclosure. Cancellation fee for non-disclosure £50

Could this be the reason why they are seeking to charge £50 instead of £15?

https://www.1stcentralinsurance.com/legal-information/important-information

Aylesbury_Duck

I think you've missed something. You failed to disclose pertinent information.

Feel free to challenge them if you're certain you've understood the contract properly, but as I said earlier, if you start mucking about over the £80 you risk making things much worse for yourself.

TheGreySection

https://forums.moneysavingexpert.com/discussion/comment/82111792#Comment_82111792

I found a policy for £4 cheaper than the original 1st Central premium (£254 cheaper than the updated premium) with all information disclosed which is why I cancelled the 1st Central policy.

LightFlare

So with the £80 cancellation charge it’s still £170 cheaper.

I would just take it on the chin as a learning “fee” and be grateful it didnt cost you a whole lot more

TheGreySection

https://forums.moneysavingexpert.com/discussion/comment/82111793#Comment_82111793

I'm not sure what you are looking at but I have looked at my actual policy wording which clearly states the £50 fee is payable "after 14 days of the policy start date, if we have to cancel your policy because you gave us incorrect information". 1st Central did not cancel the policy, I did.