Insurance cancelled after insurance write-off
Discussion
Hi,
My girlfriend had a non-fault car accident, she called her insurance and they collected her car and gave her use of a hire vehicle.
Her insurance then rang her to tell her that the other party admitted liability and that the damage to her car was in excess of the value therefore a write-off. They also said that because she was now without a car they would cancel the remaining 3 weeks of her policy and issue a refund. None of this was negotiable.
She has now been given the settlement and has purchased another car. But since they cancelled her policy she now has to setup another, this means that she loses this years no claim discount and also has to admit to having a policy cancelled by an insurer when it comes to getting new quotes along with the fact her car was written off.
This means that the cheapest quote is now £1500. Double what it would be without declaring the policy cancellation, accident and with 0 years NCD (she only started driving a year ago).
Does this sound right that she should be massively out of pocket in a non-fault scenario?
Her insurer is named after the highest ranking naval position if that helps.
My girlfriend had a non-fault car accident, she called her insurance and they collected her car and gave her use of a hire vehicle.
Her insurance then rang her to tell her that the other party admitted liability and that the damage to her car was in excess of the value therefore a write-off. They also said that because she was now without a car they would cancel the remaining 3 weeks of her policy and issue a refund. None of this was negotiable.
She has now been given the settlement and has purchased another car. But since they cancelled her policy she now has to setup another, this means that she loses this years no claim discount and also has to admit to having a policy cancelled by an insurer when it comes to getting new quotes along with the fact her car was written off.
This means that the cheapest quote is now £1500. Double what it would be without declaring the policy cancellation, accident and with 0 years NCD (she only started driving a year ago).
Does this sound right that she should be massively out of pocket in a non-fault scenario?
Her insurer is named after the highest ranking naval position if that helps.
desolate said:
Definitely.
Just read the OP properly and realised that Admiral paid out and will claim back from the TP.
Ending the policy in those circumstances is standard practice.
It’s not. Just read the OP properly and realised that Admiral paid out and will claim back from the TP.
Ending the policy in those circumstances is standard practice.
The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
desolate said:
She DEFINITELY does not need to disclose this matter as "having a policy cancelled."
There is a chap who works for Admiral on here and I am sure he will explain why they have done what they have done.
I hope you're right.There is a chap who works for Admiral on here and I am sure he will explain why they have done what they have done.
Admiral came out cheapest on comparison sites so we phoned them again for a quote, they have been great during the claim process so no complaints there. I explicitly asked the chap on the phone about this during the quote and he told me that we have to answer YES to that question. Admittedly he might not have the full picture or might be talking out of his ass.
Could someone point me toward the Admiral employee so I can double check without calling another potentially mis-informed call centre staff member.
Gavia said:
It’s not.
The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
It sounds to me like we have been wronged slightly. I'll look for the FCA guidance on this.The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
Gavia said:
It’s not.
The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
There you go.The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
It's been some time since I was involved in selling personal car insurance.
CarAbuser said:
Gavia said:
It’s not.
The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
It sounds to me like we have been wronged slightly. I'll look for the FCA guidance on this.The policyholder has the right to add a new car to the existing policy. The FCA stopped the practice of cancelling policies on total loss a few years ago and enforced the right to add a substitute car, as long as the new car is within their underwriting criteria
https://www.admiral.com/policyDocs/AD-003-013-Your...
Page 40/56 pdf numbering
Gavia said:
Not to back track and I’ve been trying to find this but will keep looking. However, Admirals policy booklet seems to suggest that they will simply cancel, which is a bit poor. There seems to have been a lot of revisions to the policy booklet though amd I’ve not gone through them all. This is the one that applies based on the timescales you’ve quoted.
https://www.admiral.com/policyDocs/AD-003-013-Your...
Page 40/56 pdf numbering
Thanks for that. It's written in their policy so it looks like they have done everything they said they would.https://www.admiral.com/policyDocs/AD-003-013-Your...
Page 40/56 pdf numbering
In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
I had a similar thing recently, was hit by a third party that wrote my car off.
Car as still ok to drive so directline just reduced my policy to third party after they had paid out (this could have been put back to full comp if I got the car re MOT's from memory) I bought the car back so the insurance was kept running until i paid to change the policy to a new car.
Car as still ok to drive so directline just reduced my policy to third party after they had paid out (this could have been put back to full comp if I got the car re MOT's from memory) I bought the car back so the insurance was kept running until i paid to change the policy to a new car.
CarAbuser said:
Thanks for that. It's written in their policy so it looks like they have done everything they said they would.
In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
She definitely does not have to declare that she has had a policy cancelled.In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
desolate said:
CarAbuser said:
Thanks for that. It's written in their policy so it looks like they have done everything they said they would.
In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
She definitely does not have to declare that she has had a policy cancelled.In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
Gavia said:
desolate said:
CarAbuser said:
Thanks for that. It's written in their policy so it looks like they have done everything they said they would.
In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
She definitely does not have to declare that she has had a policy cancelled.In light of this policy, is it correct that my girlfriend has to now declare that she has had a policy cancelled? That would normally insinuate that a person has either lied about their details and been found out or has broken the conditions of the cover!
CarAbuser said:
Thanks for all the replies.
I will go back to Admiral and ask for a re-quote and try to push the point about not declaring a cancelled policy. We have until Monday as the new car is on temp cover until then.
Seriously, it really doesn't matter what Admiral say about the cancelled policy thing.I will go back to Admiral and ask for a re-quote and try to push the point about not declaring a cancelled policy. We have until Monday as the new car is on temp cover until then.
Surely the "have you had a policy cancelled" question relates to where a policy is cancelled due to something irregular/illegal/dishonest/non-paying etc etc. There will be dozens of cars written off every day; the policies may well be ended because there is no longer a vehicle to insure (notwithstanding comments above about adding another insurable vehicle) but I'd be extremely surprised if this counts as a "policy cancelled" strike in terms of renewal.
Put it another way - if you insure a car, sell it after, say, 6 months, terminate the insurance and then wait another year before you buy and insure another car, would you declare that previous policy as "cancelled" when it came to that question on your next proposal form? No, nor me.
Put it another way - if you insure a car, sell it after, say, 6 months, terminate the insurance and then wait another year before you buy and insure another car, would you declare that previous policy as "cancelled" when it came to that question on your next proposal form? No, nor me.
CAPP0 said:
Surely the "have you had a policy cancelled" question relates to where a policy is cancelled due to something irregular/illegal/dishonest/non-paying etc etc. There will be dozens of cars written off every day; the policies may well be ended because there is no longer a vehicle to insure (notwithstanding comments above about adding another insurable vehicle) but I'd be extremely surprised if this counts as a "policy cancelled" strike in terms of renewal.
Put it another way - if you insure a car, sell it after, say, 6 months, terminate the insurance and then wait another year before you buy and insure another car, would you declare that previous policy as "cancelled" when it came to that question on your next proposal form? No, nor me.
I completely agree. The reasons I started the thread was because admiral used that exact word "cancel" when they spoke to us on the phone. I even asked to speak with a manager on the phone when we went for a new quote just to clarify the situation about the old policy. Put it another way - if you insure a car, sell it after, say, 6 months, terminate the insurance and then wait another year before you buy and insure another car, would you declare that previous policy as "cancelled" when it came to that question on your next proposal form? No, nor me.
The policy booklet does say cancel too.
Admiral Policy Booklet said:
Should your car be stolen and/or deemed a total loss, we will cancel your policy without prior notice by writing to your last known address.
I will push this with them. I equally as pissed about not being awarded the 1 year NCB. We haven't actually claimed on the policy, they have just ended it 3 weeks prior. I really hate dealing with these companies and hope that they get hit with a large regulatory stick to put an end to their blatant profiteering.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff