Insurance cancellation claim nightmare - any advice
Discussion
Hi there. I have been stupid. Always wanted an Impreza - stupidly bought a modified one, and thought I had declared all the modifications, (exhaust, suspension, wheels etc) but turns out I hadn't realised the spoiler and rear diffuser were modified also. I stupidly went with a mainstream insurer rather than a specialist.
Had a minor low speed prang with a parked car in the snow (very low profile tyres) and insurer have now cancelled the policy due to undeclared modifications. Have been told the car will likely be written off and apparently the cancellation doesn't affect the claim.
if the claim isn't settled by the time it is cancelled in about a weeks time, will I need to buy another policy to avoid falling foul of continuous insurance regs? How would I even insure a car that is shortly to be written off and is with Copart?
Tried to appeal on the basis that I tried to declare all modifications in good faith, but have been told cancellation has been processed, so they won't entertain it.
Thought I knew about cars and insurance, but I know I have been a completely naïve idiot here and I will no doubt be paying the penalty for that with very expensive premiums for ever more!
Had a minor low speed prang with a parked car in the snow (very low profile tyres) and insurer have now cancelled the policy due to undeclared modifications. Have been told the car will likely be written off and apparently the cancellation doesn't affect the claim.
if the claim isn't settled by the time it is cancelled in about a weeks time, will I need to buy another policy to avoid falling foul of continuous insurance regs? How would I even insure a car that is shortly to be written off and is with Copart?
Tried to appeal on the basis that I tried to declare all modifications in good faith, but have been told cancellation has been processed, so they won't entertain it.
Thought I knew about cars and insurance, but I know I have been a completely naïve idiot here and I will no doubt be paying the penalty for that with very expensive premiums for ever more!
gshughes said:
Hi there. I have been stupid. Always wanted an Impreza - stupidly bought a modified one, and thought I had declared all the modifications, (exhaust, suspension, wheels etc) but turns out I hadn't realised the spoiler and rear diffuser were modified also. I stupidly went with a mainstream insurer rather than a specialist.
Had a minor low speed prang with a parked car in the snow (very low profile tyres) and insurer have now cancelled the policy due to undeclared modifications. Have been told the car will likely be written off and apparently the cancellation doesn't affect the claim.
if the claim isn't settled by the time it is cancelled in about a weeks time, will I need to buy another policy to avoid falling foul of continuous insurance regs? How would I even insure a car that is shortly to be written off and is with Copart?
Tried to appeal on the basis that I tried to declare all modifications in good faith, but have been told cancellation has been processed, so they won't entertain it.
Thought I knew about cars and insurance, but I know I have been a completely naïve idiot here and I will no doubt be paying the penalty for that with very expensive premiums for ever more!
Consider making a complaint to the ombudsman, as the cancellation is going to have lasting effects on your future insurance availability & premiums.Had a minor low speed prang with a parked car in the snow (very low profile tyres) and insurer have now cancelled the policy due to undeclared modifications. Have been told the car will likely be written off and apparently the cancellation doesn't affect the claim.
if the claim isn't settled by the time it is cancelled in about a weeks time, will I need to buy another policy to avoid falling foul of continuous insurance regs? How would I even insure a car that is shortly to be written off and is with Copart?
Tried to appeal on the basis that I tried to declare all modifications in good faith, but have been told cancellation has been processed, so they won't entertain it.
Thought I knew about cars and insurance, but I know I have been a completely naïve idiot here and I will no doubt be paying the penalty for that with very expensive premiums for ever more!
If the insurer was happy to accept the declared modifications, are they being un-reasonable by refusing the additional undeclared ones, particularly, if as you say, the omission was unintentional on your part?
I'm gonna guess the insurance company begins with an A and is a commonly known word for Rank ?
This makes no sense to me, if the policy pays out its closed anyway (if the car is written off). If the policy is cancelled due to non disclosed mods, it would void the your claim usually. Are you sure they are not going to pay the 3rd party but void the claim for your own car?
This makes no sense to me, if the policy pays out its closed anyway (if the car is written off). If the policy is cancelled due to non disclosed mods, it would void the your claim usually. Are you sure they are not going to pay the 3rd party but void the claim for your own car?
stargazer30 said:
I'm gonna guess the insurance company begins with an A and is a commonly known word for Rank ?
This makes no sense to me, if the policy pays out its closed anyway (if the car is written off). If the policy is cancelled due to non disclosed mods, it would void the your claim usually. Are you sure they are not going to pay the 3rd party but void the claim for your own car?
Not that one, but similar.This makes no sense to me, if the policy pays out its closed anyway (if the car is written off). If the policy is cancelled due to non disclosed mods, it would void the your claim usually. Are you sure they are not going to pay the 3rd party but void the claim for your own car?
Yes it is strange, they say it doesn't affect the claim.
I think I will complain, would be happy with a reduced pay out.
I would definitely be complaining to them and asking for confirmation that your policy is not cancelled until the payout is complete and then reassurance that they will then insure you on your next car assuming the current one is written off.
If in good faith you advised them of the mods and then they discovered a couple of other mods I think it would be difficult for them to claim they wouldn’t have otherwise insured you but of course may try and charge you retrospectively for the additional mods.
If they are proceeding with the claim itself then all well and good but it then contradicts why they would cancel unless it is nothing to do with the mods - declared or otherwise - and is just their normal practice in the event of a write off.
What you clearly want to avoid is having to advise any future Insurers that your policy was cancelled unless as stated it’s purely iro the write off.
If in good faith you advised them of the mods and then they discovered a couple of other mods I think it would be difficult for them to claim they wouldn’t have otherwise insured you but of course may try and charge you retrospectively for the additional mods.
If they are proceeding with the claim itself then all well and good but it then contradicts why they would cancel unless it is nothing to do with the mods - declared or otherwise - and is just their normal practice in the event of a write off.
What you clearly want to avoid is having to advise any future Insurers that your policy was cancelled unless as stated it’s purely iro the write off.
NikBartlett said:
Can you argue with the insurance company that you unaware at the time of taking out the insurance that the spoiler and rear diffuser were non-standard ?
The OP had told us this in his opening post.To the OP, I agree with the others, if your policy is being cancelled because of undeclared mods then they won't be paying your claim (they might have to pay the third party if it's a full claim).
If they are, then they can only do that if they can show that they wouldn't have taken the business if the mods had been fully declared. Then there's the point that you can only answer the questions to the best of your belief. So plenty to the ask, then make a complaint, then go to the ombudsman.
I agree also that it feels more likely that they have cancelled due to the total loss.
Bert
BertBert said:
NikBartlett said:
Can you argue with the insurance company that you unaware at the time of taking out the insurance that the spoiler and rear diffuser were non-standard ?
The OP had told us this in his opening post.To the OP, I agree with the others, if your policy is being cancelled because of undeclared mods then they won't be paying your claim (they might have to pay the third party if it's a full claim).
If they are, then they can only do that if they can show that they wouldn't have taken the business if the mods had been fully declared. Then there's the point that you can only answer the questions to the best of your belief. So plenty to the ask, then make a complaint, then go to the ombudsman.
I agree also that it feels more likely that they have cancelled due to the total loss.
Bert
He had a prang, they have found out that he has undeclared mods) possibly via pics taken at the accident) they have decided to cover the 3rd party part but will then be cancelling his insurance due to the mods & (possibly, not mentioned) not paying out or reducing the payout to the OP.
Unfortunately with undeclared mods (whether knowingly or not) they are probably within their rights to do so, as unfortunately many main stream insurers will only cover up to 3 mods, any more than that then they wouldn't have accepted the cover.
As to advice, sorry I have none OP
BertBert said:
NikBartlett said:
Can you argue with the insurance company that you unaware at the time of taking out the insurance that the spoiler and rear diffuser were non-standard ?
The OP had told us this in his opening post.To the OP, I agree with the others, if your policy is being cancelled because of undeclared mods then they won't be paying your claim (they might have to pay the third party if it's a full claim).
If they are, then they can only do that if they can show that they wouldn't have taken the business if the mods had been fully declared. Then there's the point that you can only answer the questions to the best of your belief. So plenty to the ask, then make a complaint, then go to the ombudsman.
I agree also that it feels more likely that they have cancelled due to the total loss.
Bert
E-bmw said:
The OP has already covered that.
He had a prang, they have found out that he has undeclared mods) possibly via pics taken at the accident) they have decided to cover the 3rd party part but will then be cancelling his insurance due to the mods & (possibly, not mentioned) not paying out or reducing the payout to the OP.
Unfortunately with undeclared mods (whether knowingly or not) they are probably within their rights to do so, as unfortunately many main stream insurers will only cover up to 3 mods, any more than that then they wouldn't have accepted the cover.
As to advice, sorry I have none OP
That's the question as the OP has said that he's checked and they are paying his loss. When many insurers pay out a total loss, that's the end of the policy. Semantically it's not cancelled it terminates under the specific termination clause, but "cancel" is the common parlance for it.He had a prang, they have found out that he has undeclared mods) possibly via pics taken at the accident) they have decided to cover the 3rd party part but will then be cancelling his insurance due to the mods & (possibly, not mentioned) not paying out or reducing the payout to the OP.
Unfortunately with undeclared mods (whether knowingly or not) they are probably within their rights to do so, as unfortunately many main stream insurers will only cover up to 3 mods, any more than that then they wouldn't have accepted the cover.
As to advice, sorry I have none OP
Forester1965 said:
That was my first thought. Then I did wonder why they'd even bring up the non-declared parts if it had no bearing on the claim or cancellation?
This is very odd. I'm wondering whether they've discovered the additional mods through pictures of the damage and reduced the payout by the amount the premium would have risen if declared, and then used the term 'cancelled', which as we all know is standard practice after a total loss.
If they have somehow cancelled for the undeclared mods and still paid out for the OP's loss, the ombudsman must be the way to go as the OP clearly hasn't been trying to deceive. It must surely be understood that it's easy to miss mods on these cars as there were so many variations, special editions etc.
Good luck OP
BertBert said:
That's the question as the OP has said that he's checked and they are paying his loss. When many insurers pay out a total loss, that's the end of the policy. Semantically it's not cancelled it terminates under the specific termination clause, but "cancel" is the common parlance for it.
I was very surprised in 2018 when my insurer transferred my policy to a replacement car after I'd written the previous one off.I'd called up to purchase a new policy, assuming that the write-off had terminated the existing one, and was quite confused when the agent took the new car details and said, basically, 'see you at renewal time.'
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