Have you ever had insurance declined or cancelled ...
Discussion
Asking for a mate
Its a question we get asked every time we do an insurance quote for a car, but does this relate specifically to car insurance being cancelled/voided/declined or just any insurance (e.g. home insurance, pet insurance, mobile insurance, etc.)?
e.g. if I had phone insurance or pet insurance or home insurance etc. cancelled 10 years ago, would that apply to a car insurance quote?
Its a question we get asked every time we do an insurance quote for a car, but does this relate specifically to car insurance being cancelled/voided/declined or just any insurance (e.g. home insurance, pet insurance, mobile insurance, etc.)?
e.g. if I had phone insurance or pet insurance or home insurance etc. cancelled 10 years ago, would that apply to a car insurance quote?
Edited by sonnenschein3000 on Sunday 13th August 15:08
sonnenschein3000 said:
Asking for a mate (obvs)
Its a question we get asked every time we do an insurance quote for a car, but does this relate specifically to car insurance being cancelled/voided/declined or just any insurance (e.g. home insurance, pet insurance, mobile insurance, etc.)?
e.g. if I had phone insurance cancelled 10 years ago, would that apply to a car insurance quote?
You are obliged to answer questions truthfully, the Insurer is obliged to ask specifically worded questions, they cannot ask open ended questions that are open to interpretation.Its a question we get asked every time we do an insurance quote for a car, but does this relate specifically to car insurance being cancelled/voided/declined or just any insurance (e.g. home insurance, pet insurance, mobile insurance, etc.)?
e.g. if I had phone insurance cancelled 10 years ago, would that apply to a car insurance quote?
If the question asks about previously cancelled car policies then it only wants to know about previously cancelled car policies. If it just asks if you have had a policy cancelled it would normally be for any type of insurance policy.
Again unless the Insurer asks for a limited period eg in the last five years then they want to know about any policies cancelled ever
desolate said:
sonnenschein3000 said:
Is there a database that cancelled/refused insurances are kept on?
No.And definitely not for mobile phone insurance.
mickmcpaddy said:
desolate said:
sonnenschein3000 said:
Is there a database that cancelled/refused insurances are kept on?
No.And definitely not for mobile phone insurance.
Edited by anonymous-user on Sunday 13th August 00:29
I'm fairly sure the law will have ensured that the question the proposal will ask will be quite specific so is likely to relate purely to the type of cover you are getting a quote on.
If you lie about a declinature in particular (insurers try to avoid doing that if they can as they know it has to be declared elsewhere which might make it difficult to get that particular client off their books. If the client can no longer get cover elsewhere they are the last insurer and have to offer cover though this might have very onerous terms) then you potentially open a whole world of pain.
Insurers have many ways of finding this stuff out their database is just a starter. The risk of having your cover voided from inception as you have withheld a relevant fact isn't worth it. What insurers are often bothered with is moral hazard - if they think this about you it's gonna hurt your pockets. If the cancellation is for something else less so. My advice after a 36 year career in insurance is just to tell them the truth you'll find some insurers less bothered by it than others, some will refuse to quote others won't.
If you lie about a declinature in particular (insurers try to avoid doing that if they can as they know it has to be declared elsewhere which might make it difficult to get that particular client off their books. If the client can no longer get cover elsewhere they are the last insurer and have to offer cover though this might have very onerous terms) then you potentially open a whole world of pain.
Insurers have many ways of finding this stuff out their database is just a starter. The risk of having your cover voided from inception as you have withheld a relevant fact isn't worth it. What insurers are often bothered with is moral hazard - if they think this about you it's gonna hurt your pockets. If the cancellation is for something else less so. My advice after a 36 year career in insurance is just to tell them the truth you'll find some insurers less bothered by it than others, some will refuse to quote others won't.
Not for myself.
When my son was doing a degree he was on a placement in year3 at a local to us place.
Bought a cheap car for him to use. Approached Norwich Union as their quote was good ( sub £400 about 12 years ago). This was on a Friday.
Done by phone and cover immediate.
On the Monday the paperwork arrived. I checked it -always do for safety.
Son was named driver....ok
Page2 in exemptions it stated he was NOT insured for the car!
Very odd.
I phoned them for clarification. The girl said they realised that due to his age etc they wouldn't insure him for that premium. I asked why the quote was confirned on the Friday. Evasive answer. I then asked why we were not called back immediately. He had been driving the car on the weekend so was uninsured and commiting an offence? Where was their duty of care?
What would have happened if he was involved in an incident? What is their complaints procedure?
The girl went to speak to a "superior". She came back saying it was their error and they would honour the quote but it would go up on renewal in a year's time.
Got a verbal confirmation before the call ended re a recording to confirm. New paperwork sent out and checked ok.
So, a telesales operator made a basic error resulting in possible major repurcussions.
Luckily their response was good.
No renewal made after a year as son went back to uni and car then sold.
Moral?
Be truthfull and check the paperwork/files on account when received.
When my son was doing a degree he was on a placement in year3 at a local to us place.
Bought a cheap car for him to use. Approached Norwich Union as their quote was good ( sub £400 about 12 years ago). This was on a Friday.
Done by phone and cover immediate.
On the Monday the paperwork arrived. I checked it -always do for safety.
Son was named driver....ok
Page2 in exemptions it stated he was NOT insured for the car!
Very odd.
I phoned them for clarification. The girl said they realised that due to his age etc they wouldn't insure him for that premium. I asked why the quote was confirned on the Friday. Evasive answer. I then asked why we were not called back immediately. He had been driving the car on the weekend so was uninsured and commiting an offence? Where was their duty of care?
What would have happened if he was involved in an incident? What is their complaints procedure?
The girl went to speak to a "superior". She came back saying it was their error and they would honour the quote but it would go up on renewal in a year's time.
Got a verbal confirmation before the call ended re a recording to confirm. New paperwork sent out and checked ok.
So, a telesales operator made a basic error resulting in possible major repurcussions.
Luckily their response was good.
No renewal made after a year as son went back to uni and car then sold.
Moral?
Be truthfull and check the paperwork/files on account when received.
A few years ago I asked, our then resident insurance expert LoonR1, the same question about 'declined' insurance on another thread.
This was his answer:
If you go back 25 years, then car insurance was doinated by brokers. There were no direct underwriters, let alone internet and you bought via a little High St shop. The brokers rarly had delegated underwriting authority, so they placed your business with an underwriter and gave you a 30 dday cover note. This was so that the underwriter could carry out all the necessary checks they needed, that the broker couldn't do and once complet they either accepted you and sent you a full year insurance schedule and policy, or special rating terms imposed or declined you and you started again with another underwriter.
You were only ever likely to be declined if you lied on your proposal.
Modern life & technology have moved things on and the question is effectively in need of an overhaul, in a few years it should read "Have you ever had an insurance policy cancelled by the insurer?" It's still worded the way it is as there are plenty of us still driving who bought policies 25 years plus ago and might have had cover declined or special terms imposed.http://www.pistonheads.com/gassing/topic.asp?h=0&f=10&t=1277618&mid=58575&nmt=Insurance+question
This was his answer:
LoonR1 said:
Puddenchucker said:
So, serious question as I genuinely do not know the the answer, what, in insurance terms, is having a policy "declined" ?
I think Ash has confused the matter somewhat here, by suggesting it's a new question related to the new CIA. It's a very old question.If you go back 25 years, then car insurance was doinated by brokers. There were no direct underwriters, let alone internet and you bought via a little High St shop. The brokers rarly had delegated underwriting authority, so they placed your business with an underwriter and gave you a 30 dday cover note. This was so that the underwriter could carry out all the necessary checks they needed, that the broker couldn't do and once complet they either accepted you and sent you a full year insurance schedule and policy, or special rating terms imposed or declined you and you started again with another underwriter.
You were only ever likely to be declined if you lied on your proposal.
Modern life & technology have moved things on and the question is effectively in need of an overhaul, in a few years it should read "Have you ever had an insurance policy cancelled by the insurer?" It's still worded the way it is as there are plenty of us still driving who bought policies 25 years plus ago and might have had cover declined or special terms imposed.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff