Insurance Cancellation Question
Discussion
I have a quick question regarding insurance being cancelled by the insurance company.
Someone I know (no it really is) has received notification that their car insurance will be cancelled on Tuesday. They plan to cancel their policy on Sunday, so that when they answer the "have you ever had insurance cancelled etc." question when taking out a new policy, they will be able to say no.
In my mind, the company has told them the policy will be cancelled, meaning it is cancelled, just with some lead time to stop people claiming they were driving uninsured due to the company. Without doubt, I feel like there would be some explaining to do if the new insurer found out about this plan.
Is there anyone with a definitive answer to this?
Thanks
Someone I know (no it really is) has received notification that their car insurance will be cancelled on Tuesday. They plan to cancel their policy on Sunday, so that when they answer the "have you ever had insurance cancelled etc." question when taking out a new policy, they will be able to say no.
In my mind, the company has told them the policy will be cancelled, meaning it is cancelled, just with some lead time to stop people claiming they were driving uninsured due to the company. Without doubt, I feel like there would be some explaining to do if the new insurer found out about this plan.
Is there anyone with a definitive answer to this?
Thanks
Technically your mate has a point. They ask "have you ever had a policy cancelled". Not "have you ever been given advanced warning that your policy is going to be cancelled". If he cancels it before they do, then has hasn't had a policy cancelled.
Skating a bit on thin ice but it's what I would be doing.
Also, why are they cancelling. If it's because he's changed address or vehicles and they don't like the new details, that's one thing. If it's because they've found out he's lied to them about the risk, then that's another.
Skating a bit on thin ice but it's what I would be doing.
Also, why are they cancelling. If it's because he's changed address or vehicles and they don't like the new details, that's one thing. If it's because they've found out he's lied to them about the risk, then that's another.
I guess it depends why the insurance is being cancelled. I've had it cancelled but not because I did something wrong, it was because they couldn't provide cover for me when a change to the policy was made.
I asked them, 'Do I need to say yes if somebody asks me if I have had insurance cancelled?' They said no.
I confirmed that with my new insurers who said it would be fine.
Why was the insurance cancelled? Think your mate will be fine with his plan though.
I asked them, 'Do I need to say yes if somebody asks me if I have had insurance cancelled?' They said no.
I confirmed that with my new insurers who said it would be fine.
Why was the insurance cancelled? Think your mate will be fine with his plan though.
They are cancelling because he told them he had 2 years no claims bonus, which is currently in contention as he has a claim outstanding, so they've informed him they will be cancelling Tuesday.
Edit* To clarify, the current car was bought because his previous car was written off. Therefore the claim has been on going since before the inception of this policy.
Edit* To clarify, the current car was bought because his previous car was written off. Therefore the claim has been on going since before the inception of this policy.
Edited by Robb F on Thursday 9th March 09:28
Robb F said:
They are cancelling because he told them he had 2 years no claims bonus, which is currently in contention as he has a claim outstanding, so they've informed him they will be cancelling Tuesday.
Edit* To clarify, the current car was bought because his previous car was written off. Therefore the claim has been on going since before the inception of this policy.
In that case he has dad insurance cancelled and also has a outstanding claim.Edit* To clarify, the current car was bought because his previous car was written off. Therefore the claim has been on going since before the inception of this policy.
Edited by anonymous-user on Thursday 9th March 09:28
Would be worth mentioning both to new insurer's
Just to check, you state that his policy is being cancelled because he doesn't have 2 years NCD. How are they treating the cancellation?
Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
Robb F said:
DSGbangs said:
In that case he has dad insurance cancelled and also has a outstanding claim.
Would be worth mentioning both to new insurer's
You'd think so, but not mentioning important details to insurance is what got him into the pickle in the first place!Would be worth mentioning both to new insurer's
I used to have a mate like that, It will cost her dearly if he has a fault accident.
Iambatman said:
Just to check, you state that his policy is being cancelled because he doesn't have 2 years NCD. How are they treating the cancellation?
Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
I don't have all the details as but as I understand it, he told them he has 2 years ncb and didn't mention the accident, presumably because he thought as the claim hadn't been finished, he didn't technically have a claim against his name yet.Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
They have since found out that the ncb is in contention, due to the ongoing claim. His policy was already 5k a year, so there is a chance the lack of ncb pushed him past a "we don't want this risk" limit, or they want to cancel due to non-disclosure. Either way, there was no option for increasing the premium, they simply notified him the policy is/will be cancelled on Tuesday.
I'm surprised insurance companies allow this little loop hole to exist to be honest, seems a little too easy to get away with.
Robb F said:
Iambatman said:
Just to check, you state that his policy is being cancelled because he doesn't have 2 years NCD. How are they treating the cancellation?
Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
I don't have all the details as but as I understand it, he told them he has 2 years ncb and didn't mention the accident, presumably because he thought as the claim hadn't been finished, he didn't technically have a claim against his name yet.Normal process would be to reduce his NCD entitlement down to 0 years and charge the additional premium for the risk change. If the premium is too high for the insurance company to cover or they require 2 years NCD for vehicle criteria then that would be why they are invoking cancellation.
Secondly, has he actually declared the "disputed" claim on his policy? If he hasn't, i'd take the assumption that they're treating it as a non disclosure and don't want to continue insurance.
In regards to other insurance companies, if he cancels the policy first then he hasn't had a policy cancelled. As mentioned previously in this post, it does however depend on how the question is put across by the insurance company you are gaining a quote from.
They have since found out that the ncb is in contention, due to the ongoing claim. His policy was already 5k a year, so there is a chance the lack of ncb pushed him past a "we don't want this risk" limit, or they want to cancel due to non-disclosure. Either way, there was no option for increasing the premium, they simply notified him the policy is/will be cancelled on Tuesday.
I'm surprised insurance companies allow this little loop hole to exist to be honest, seems a little too easy to get away with.
£5000 for his insurance, christ, is he driving an M3?!
If it purely is a case of that the company couldn't insure him because of price, then most insurance companies when you answer insurance policy cancelled have set criteria as to what is deemed as an acceptable risk.
It sounds like in his case though he should wait for the claim to be closed non fault (if this is the case) and then look at insuring again. For his future reference, if the claim is pending/ongoing it will still need to be declared. There's normally an option to select "Recovery out standing" which would cover his scenario.
Robb F said:
I don't have all the details as but as I understand it, he told them he has 2 years ncb and didn't mention the accident, presumably because he thought as the claim hadn't been finished, he didn't technically have a claim against his name yet.
They have since found out that the ncb is in contention, due to the ongoing claim. His policy was already 5k a year, so there is a chance the lack of ncb pushed him past a "we don't want this risk" limit, or they want to cancel due to non-disclosure. Either way, there was no option for increasing the premium, they simply notified him the policy is/will be cancelled on Tuesday.
I'm surprised insurance companies allow this little loop hole to exist to be honest, seems a little too easy to get away with.
What loophole?They have since found out that the ncb is in contention, due to the ongoing claim. His policy was already 5k a year, so there is a chance the lack of ncb pushed him past a "we don't want this risk" limit, or they want to cancel due to non-disclosure. Either way, there was no option for increasing the premium, they simply notified him the policy is/will be cancelled on Tuesday.
I'm surprised insurance companies allow this little loop hole to exist to be honest, seems a little too easy to get away with.
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