cancellation of car insurance policy

seanblake

Has this happened to anybody else ?
I recently had to renew my car insurance, I tried the comparison sites and found a company on Tescocompare that were offering me a really good price on a T,F & T policy. I took the policy and paid the initial instalment. I arranged the direct debit to take care of the following payments and a few days later I recieved the certificate of insurance in the post, everything is great. Until today. This morning I recieved a letter from the insurance company telling me that they had made a mistake and had priced the policy wrong ( too low ), they are threatening to cancel my policy in one weeks time unless I pay an increased premium. All the information I gave them was correct and this is completely there mistake. Can they do this? I'd be grateful for any advice.
Thanks.

lisyloo

Yes an insurer can cancel a policy in the same way that you can.
There will be some terms and conditions e.g. they might have to give you notice, but yes they can.

seanblake

Thanks Lisyloo. Strange thing is, today ( Thursday ) the insurance company rang me to say that they would honour the original price as long as I didn't alter the policy during the year. That's good enough for me.

Steve1981

there seems to be 3 threads on this at the minute - I wonder how wide spread this might become?