Unexpected underwriting criteria change - Car Insurance
Discussion
Hi all,
Recieved a phone call today from the Broker that setup my car insurance to advise me that due to a 'unexpected underwriting criteria change' my policy is now unacceptable.
I have 7 days to find alternate cover as the policy will be cancelled.
I asked what had changed and was told it was due to having business use on my policy - This was needed as we have different offices around the country that I occasionally visit. Due to Covid they have shut so I actually don't need it anymore. I asked whether this could be taken off and just carry on as normal and was told no.
Policy has been active since September, no claims or anything have been made... very odd.
Has anyone had similar? I'm hacked off and concerend that this will be down as a insurance policy cancellation against me that i will have to disclose in future?
Recieved a phone call today from the Broker that setup my car insurance to advise me that due to a 'unexpected underwriting criteria change' my policy is now unacceptable.
I have 7 days to find alternate cover as the policy will be cancelled.
I asked what had changed and was told it was due to having business use on my policy - This was needed as we have different offices around the country that I occasionally visit. Due to Covid they have shut so I actually don't need it anymore. I asked whether this could be taken off and just carry on as normal and was told no.
Policy has been active since September, no claims or anything have been made... very odd.
Has anyone had similar? I'm hacked off and concerend that this will be down as a insurance policy cancellation against me that i will have to disclose in future?
AllyBassman said:
I asked what had changed and was told it was due to having business use on my policy - This was needed as we have different offices around the country that I occasionally visit. Due to Covid they have shut so I actually don't need it anymore. I asked whether this could be taken off and just carry on as normal and was told no.
Press them harder on this. I would suggest that the ombudsman would take a dim view of them declaring that business use is the policy and you being able to confirm that it is indeed no longer a requirement and them still saying they want to cancel anyway with no further clarification as to why.Sounds like the broker has upset an underwriter to me.
I doubt that an insurance company can cancel a policy during the period of insurance, it is a contract. That means they cannot change the terms during the period. The only way they can cancel is if they find out you have been economical with the truth during application or if you cease paying a monthly DD. Business use (class 1) normally makes very little difference, if any, to a policy premium anyway.
It could be something as simple as the underwriter selling their book to another underwriter, and you don't align up with the new criteria. 30 days notice used to be the standard where I worked but that would usually be on the lead up to renewal and the 30 days was the minimum. Speak to the broker to find out the actual reason.
It's not a cancellation that you need to declare.
It's not a cancellation that you need to declare.
AllyBassman said:
I asked what had changed and was told it was due to having business use on my policy - This was needed as we have different offices around the country that I occasionally visit. Due to Covid they have shut so I actually don't need it anymore. I asked whether this could be taken off and just carry on as normal and was told no.
Doesn't affect me as I have it anway, but I got an email the other day from LV= that said due to Covid and people working from home, to avoid any confusion, they've added Class 1 business cover to all exisiting policies.In your case it's hard to understand how business use could be the real reason if they won't let you continue without it.
Edited by Sheepshanks on Thursday 18th March 15:36
AllyBassman said:
Policy was paid in full at the start, so no missed DD's.
When looking at new quotes, I did one search with business use selected and one without, the one without brought up my current policy provider (with the same price I paid last year!)
Very odd.
As said, something not right here. Tell your broker about getting your current insurer quoting you as above and demand a fuller explanation. Tell them if you have to cancel, you'll be pursuing the matter under a breach of TCF regulations. I suspect there's a problem between the insurer and the broker, and the broker has had their agency agreement terminated. If that's the case, tell your broker you wish to stay with the insurer, and they need to get the insurer to transfer you to a different broker, or transact with you directly. When looking at new quotes, I did one search with business use selected and one without, the one without brought up my current policy provider (with the same price I paid last year!)
Very odd.
Try calling the insurer and speaking to them directly, if they will agree (some insurers won't if you are thru a broker).
Sheepshanks said:
Doesn't affect me as I have it anway, but I got an email the other day from LV= that said due to Covid and people working from home, to avoid any confusion, they've added Class 1 business cover to all exisiting policies.
Interesting. Do you know what their link was between 'more working at home' requiring 'more provision of Class 1 business use'? Other than the odd person not being able to get to the office to collect a pool car etc I can't see any immediate link - I might be missing something obvious though!
C-J said:
Interesting. Do you know what their link was between 'more working at home' requiring 'more provision of Class 1 business use'?
Other than the odd person not being able to get to the office to collect a pool car etc I can't see any immediate link - I might be missing something obvious though!
Their Covid FAQ https://www.lv.com/car-insurance/coronavirus?utm_s... mentions driving to different workplaces:Other than the odd person not being able to get to the office to collect a pool car etc I can't see any immediate link - I might be missing something obvious though!
"If you’re now using your car for work or are choosing to drive to work (including different offices/places of work) to avoid public transport due to social distancing, there’s no need to let us know. We’re adding business use (class 1) to all our existing Direct Motor policies with immediate effect and until further notice. There will be no charge for this increase in cover and it will be honoured should you need to claim. This does not cover you for delivering goods as part of your work."
A family member used to be a traffic cop and he says half the time he stopped lone male drivers during the day they say things like "I'm just driving to our other branch", or "I'm just dropping something off at..." etc and they almost never had the right insurance. He generally used to just warn them as it's not likely to be an issue for 3rd party claims. I put class 1 on both our cars, and my "kids" have it too, in fact they also have it on my wife's car as named drivers in case they need to use it for work.
I had exactly the same this week.
My broker was pretty useless in helping me sort it out.
I don’t even need business use any more as I am WFH so offered to let them remove business cover but they still insisted on ending the policy.
The policy T&Cs has a 7 day notice period.
I spent far too long on the phone and so gave up trying to sort it out.
I have taken out a new policy (not via the broker) and and am waiting for my refund.
My broker was pretty useless in helping me sort it out.
I don’t even need business use any more as I am WFH so offered to let them remove business cover but they still insisted on ending the policy.
The policy T&Cs has a 7 day notice period.
I spent far too long on the phone and so gave up trying to sort it out.
I have taken out a new policy (not via the broker) and and am waiting for my refund.
So that's two people who this week have had their insurer suddenly decide they no longer want to carry on with business use?? And won't accept a reduction to pleasure use?
Who is this / are these insurers. Certainly insurers can change their criteria, no longer cover young drivers, or Ferraris or whatever. But something as trivial as business use, that's just weird. And even weirder not to just refuse to offer terms at next renewal, but to cancel mid term????
There's more to this whole story than meets the eye.
Who is this / are these insurers. Certainly insurers can change their criteria, no longer cover young drivers, or Ferraris or whatever. But something as trivial as business use, that's just weird. And even weirder not to just refuse to offer terms at next renewal, but to cancel mid term????
There's more to this whole story than meets the eye.
Going back about 15 years. my Wife had insurance on our Mondeo 1.8 petrol car (us both as named drivers) and we changed to a Ka, the broker said their insurer would give us a pro-rata refund as they didn't insure Ka's (One of the most popular cars at the time) and we would have to insure elsewhere. Both in our 40's with a clean record no accidents. Bizarre.
Fastpedeller said:
Going back about 15 years. my Wife had insurance on our Mondeo 1.8 petrol car (us both as named drivers) and we changed to a Ka, the broker said their insurer would give us a pro-rata refund as they didn't insure Ka's (One of the most popular cars at the time) and we would have to insure elsewhere. Both in our 40's with a clean record no accidents. Bizarre.
Weird, but at least you were the ones moving the goalposts by asking them to cover a different car to the one they'd signed up for. In these 2 cases, the customers are plodding along quite happily, and the insurers are making the change. Very odd. Sheepshanks said:
Their Covid FAQ https://www.lv.com/car-insurance/coronavirus?utm_s... mentions driving to different workplaces:
"If you’re now using your car for work or are choosing to drive to work (including different offices/places of work) to avoid public transport due to social distancing, there’s no need to let us know. We’re adding business use (class 1) to all our existing Direct Motor policies with immediate effect and until further notice. There will be no charge for this increase in cover and it will be honoured should you need to claim. This does not cover you for delivering goods as part of your work."
A family member used to be a traffic cop and he says half the time he stopped lone male drivers during the day they say things like "I'm just driving to our other branch", or "I'm just dropping something off at..." etc and they almost never had the right insurance. He generally used to just warn them as it's not likely to be an issue for 3rd party claims. I put class 1 on both our cars, and my "kids" have it too, in fact they also have it on my wife's car as named drivers in case they need to use it for work.
Cheers - I understand the link now such as driving instead of public transport."If you’re now using your car for work or are choosing to drive to work (including different offices/places of work) to avoid public transport due to social distancing, there’s no need to let us know. We’re adding business use (class 1) to all our existing Direct Motor policies with immediate effect and until further notice. There will be no charge for this increase in cover and it will be honoured should you need to claim. This does not cover you for delivering goods as part of your work."
A family member used to be a traffic cop and he says half the time he stopped lone male drivers during the day they say things like "I'm just driving to our other branch", or "I'm just dropping something off at..." etc and they almost never had the right insurance. He generally used to just warn them as it's not likely to be an issue for 3rd party claims. I put class 1 on both our cars, and my "kids" have it too, in fact they also have it on my wife's car as named drivers in case they need to use it for work.
Like you I put business use on both main cars, for both myself & Mrs C-J. She walks to work, but on the off-chance she drives and just 'pops to the bank' for them it gives me peace of mind that it is covered. Adding class 1 didn't used to cost much more - although I've not looked into the different recently (current premium on her 107 was approx £130 for the year all-in - tight as I am even I thought that was ok!).
I'll shut up now as I'm going well off the topic of the thread - sorry OP
C-J said:
I'll shut up now as I'm going well off the topic of the thread - sorry OP
Don't be - all good discussion!Interesting to see someone else have similar - I find it very odd. The broker in question sponsors BTCC Cars... I won't be using them again - OK it is not 100% their fault, but they're guilty by association in my mind.
I managed to sort out of a new policy with one of the big ones, price difference is not much more.. annoying but I will move on.
Fastpedeller said:
Going back about 15 years. my Wife had insurance on our Mondeo 1.8 petrol car (us both as named drivers) and we changed to a Ka, the broker said their insurer would give us a pro-rata refund as they didn't insure Ka's (One of the most popular cars at the time) and we would have to insure elsewhere. Both in our 40's with a clean record no accidents. Bizarre.
I had a Porsche 928 GT and moved to a KA (don't ask...). I told the insurer and after a period of silence they came back and rather embarrassedly asked for extra money as the KA was a bigger risk.Forums | Speed, Plod & the Law | Top of Page | What's New | My Stuff