Unilateral cancellation of motor insurance policy.

[KungFuPanda]

One of the young lads who works for me recently passed his test and bought a cheap Corsa.

He found a company who I have never heard of and agreed to take out a policy with them. I'm not sure of the total cost but the first payment was around £500 and was made around three weeks ago.

Before the next month's payment has even become due, the company have emailed him to say they have cancelled his policy without any explanation as to why. Can they do this and can they inform him by email?

[Codswallop]

Check the policy documents they issued - they'll probably give you a better idea of what the company can and can't do than PHers ever could given the lack of details in your OP.

[marshalla]

Yes and it depends what the contract says.

[KungFuPanda]

Sorry, I was just under the impression that cancellation of a motor policy had to be done in writing and not electronically?

[PurpleMoonlight]

Are you sure it's not a scam insurer?

Are they returning any of the £500?

[Martin4x4]

Sounds more like one of these Fake Insurance Company scam.

http://www.bbc.com/news/uk-15861571