Insurance policy cancelled following total loss claim
Insurance policy cancelled following total loss claim
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Discussion

ian-2mym1

Original Poster:

30 posts

67 months

Wednesday 11th October 2023
quotequote all
The daughter recently had a bump, ( at fault) and was paid out fully as the car was a total loss. Admiral have paid out and cancelled the policy, now when getting quotes when I mention have had a policy cancelled it is creating massive increases. You also have to say yes to this forever, as there is no time lapse on the question.

Surely this is wrong having to declare having a policy cancelled, when it is due to a total loss claim and the insurer cancelling it for that reason. Essentially being punished twice for a claim..

Anyone had this?

Matt_E_Mulsion

1,740 posts

83 months

Wednesday 11th October 2023
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Surely the policy ended rather than was cancelled. If the policy paid out then essentially the contract was fulfilled.

jfdi

1,240 posts

193 months

Wednesday 11th October 2023
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I wouldn't count that as cancelled. The insurance no longer exists as the car doesn't. No refund is due as they have paid out. It shouldn't be declared as a cancellation.

DaveH23

3,334 posts

188 months

Wednesday 11th October 2023
quotequote all
I'm not sure it's cancelled per se. If you claim on a policy and it's a total loss, they terminate the policy once paid out as there is no longer anything to insure, I think for that reason it's not classified as cancelled.

Plenty on here in the industry so someone will be along shortly with a more definitive answer.

The Rotrex Kid

33,295 posts

178 months

Wednesday 11th October 2023
quotequote all
You don’t have to declare it as a cancelled policy, it’s been stopped because the vehicle that was insured can no longer be insured (total loss)

It’s not a cancelled policy in the sense that an insurance company cares about. She just needs to declare the claim but the fact the policy has been ‘cancelled’ doesn’t need to be.

IIRC her insurance company should have offered her the chance to swap the policy to another car but I could be off on that.

ian-2mym1

Original Poster:

30 posts

67 months

Wednesday 11th October 2023
quotequote all
Matt_E_Mulsion said:
Surely the policy ended rather than was cancelled. If the policy paid out then essentially the contract was fulfilled.
It says on the web page when I log in, policy cancelled, and when the daughter rang up the guy on the phone said she would have to declare it on any new quote.

Surely this can’t be right, the premiums are massive and some won’t quote when it is mentioned.

FMOB

1,994 posts

30 months

Wednesday 11th October 2023
quotequote all
The Rotrex Kid said:
IIRC her insurance company should have offered her the chance to swap the policy to another car but I could be off on that.
They normally have a grace period where the policy can be transferred to another vehicle, seems harsh if they paid out and canned it immediately.

ian-2mym1

Original Poster:

30 posts

67 months

Wednesday 11th October 2023
quotequote all
The Rotrex Kid said:
You don’t have to declare it as a cancelled policy, it’s been stopped because the vehicle that was insured can no longer be insured (total loss)

It’s not a cancelled policy in the sense that an insurance company cares about. She just needs to declare the claim but the fact the policy has been ‘cancelled’ doesn’t need to be.

IIRC her insurance company should have offered her the chance to swap the policy to another car but I could be off on that.
I hope that’s right, surely the staff need notified for clearance when advising on the matter. It should say policy settled or something, rather than cancelled.

I’m going to ring admiral on Saturday when we are both off work and try and get some clarification. It’s got me worried sick for her.

ian-2mym1

Original Poster:

30 posts

67 months

Wednesday 11th October 2023
quotequote all
FMOB said:
They normally have a grace period where the policy can be transferred to another vehicle, seems harsh if they paid out and canned it immediately.
That’s what I thought. The policy had only been live a couple of weeks.

Krikkit

27,579 posts

199 months

Wednesday 11th October 2023
quotequote all
The Rotrex Kid said:
You don’t have to declare it as a cancelled policy, it’s been stopped because the vehicle that was insured can no longer be insured (total loss)

It’s not a cancelled policy in the sense that an insurance company cares about. She just needs to declare the claim but the fact the policy has been ‘cancelled’ doesn’t need to be.

IIRC her insurance company should have offered her the chance to swap the policy to another car but I could be off on that.
This ^

"Cancelled" means that the contract between you and the insurer was cancelled for some reason, i.e. payment failure, breach of terms, undeclared issues etc.

samoht

6,698 posts

164 months

Wednesday 11th October 2023
quotequote all
ian-2mym1 said:
It says on the web page when I log in, policy cancelled, and when the daughter rang up the guy on the phone said she would have to declare it on any new quote.

Surely this can’t be right, the premiums are massive and some won’t quote when it is mentioned.
She will have to declare that she had an at-fault claim and her car was written off.

She doesn't have to declare that she's had insurance cancelled, that (very confusingly) is something separate usually due to effectively fraud where the customer has lied to their insurance co.

If getting a new quote on the phone, she should be able to explain to the person what happened (she had a crash that wrote off her car) and they should know how to represent that on the new proposal - a claim, but not a cancellation.

Mr Tidy

27,629 posts

145 months

Wednesday 11th October 2023
quotequote all
Strictly speaking they are entitled to cancel as the subject matter of the contract is no more, but most insurers will continue the policy for a replacement car.

A relative had a bad experience with Admiral a few years ago when they declared his car a Cat S after a fairly minor shunt, but he chose to keep it and they kept the policy in force.

You really need to speak to them I think.

essayer

10,264 posts

212 months

Wednesday 11th October 2023
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Raise a complaint with the original insurer and get someone else to clarify the situation (and give you £100)

Dog Star

17,062 posts

186 months

Wednesday 11th October 2023
quotequote all
I agree - that doesn’t sound like “cancelled” to me.

Hopefully Twig will be along soon to give a proper, technical clarification of the matter.

ian-2mym1

Original Poster:

30 posts

67 months

Thursday 12th October 2023
quotequote all
Mr Tidy said:
Strictly speaking they are entitled to cancel as the subject matter of the contract is no more, but most insurers will continue the policy for a replacement car.

A relative had a bad experience with Admiral a few years ago when they declared his car a Cat S after a fairly minor shunt, but he chose to keep it and they kept the policy in force.

You really need to speak to them I think.
She spoke to them yesterday and they said it needs declared as a canceled claim, due to an accident.

The thing is on quotes their is no option to say why it was cancelled, just the question "have you ever had a policy cancelled, which in effect she has, then the quotes go sky high and plenty wont even insure her.

Im ringing on Saturday when we are both off work as surely this is wrong.

ian-2mym1

Original Poster:

30 posts

67 months

Thursday 12th October 2023
quotequote all
Dog Star said:
I agree - that doesn’t sound like “cancelled” to me.

Hopefully Twig will be along soon to give a proper, technical clarification of the matter.
Does he work in insurance? Got my head done in this mess.

SteBrown91

2,878 posts

147 months

Thursday 12th October 2023
quotequote all
ian-2mym1 said:
She spoke to them yesterday and they said it needs declared as a canceled claim, due to an accident.

The thing is on quotes their is no option to say why it was cancelled, just the question "have you ever had a policy cancelled, which in effect she has, then the quotes go sky high and plenty wont even insure her.

Im ringing on Saturday when we are both off work as surely this is wrong.
It sounds like she has got herself confused by what they have said.

They probably told her she now need to declare the claim rather than claim the policy being ended.

ian-2mym1

Original Poster:

30 posts

67 months

Thursday 12th October 2023
quotequote all
SteBrown91 said:
It sounds like she has got herself confused by what they have said.

They probably told her she now need to declare the claim rather than claim the policy being ended.
They said to say it had been cancelled, due to an accident claim.

Hopefully we can clear it up on Saturday when we both speak to them.

BertBert

20,511 posts

229 months

Thursday 12th October 2023
quotequote all
Don't get into a tiz OP. The policy has not been cancelled even though that's the status they have on their system. It has come to the end of its term.

Read the terms and conditions which will say in the event of a total loss and payout that's the end of the contract.

To get new insurance the fault claim needs to be declared.

ian-2mym1

Original Poster:

30 posts

67 months

Thursday 12th October 2023
quotequote all
BertBert said:
Don't get into a tiz OP. The policy has not been cancelled even though that's the status they have on their system. It has come to the end of its term.

Read the terms and conditions which will say in the event of a total loss and payout that's the end of the contract.

To get new insurance the fault claim needs to be declared.
Well the staff should be informing customers correctly on what to, and what not to declare then.