Car insurance cancelled by insurer - Legal advice please
Discussion
Hi All,
I took out car insurance with **** **** last October, with myself, Wife and 19 year old Son as drivers.
I rang them today (putting a different number plate on the car) and they told me that they would be cancelling the policy in seven days as they don't insure 19 year olds on a group 14 car.
I asked why they had issued the policy in the first place and they said it was an error on their website, but I did it over the phone, doesn't matter we are cancelling it.
Why haven't you cancelled it before? Because you have not contacted us.
So my questions are:
Can they do this?
Will it effect future insurance as they all ask if you've have had insurance refused or cancelled?
BTW But they did say they wouldn't charge me a cancellation fee
Steve
I took out car insurance with **** **** last October, with myself, Wife and 19 year old Son as drivers.
I rang them today (putting a different number plate on the car) and they told me that they would be cancelling the policy in seven days as they don't insure 19 year olds on a group 14 car.
I asked why they had issued the policy in the first place and they said it was an error on their website, but I did it over the phone, doesn't matter we are cancelling it.
Why haven't you cancelled it before? Because you have not contacted us.
So my questions are:
Can they do this?
Will it effect future insurance as they all ask if you've have had insurance refused or cancelled?
BTW But they did say they wouldn't charge me a cancellation fee
Steve
Maybe, and I'm not a lawyer although I do have a lot of experience in business, they took your details, issued a certificate of insurance in line with those details, cashed your cheque (i.e. accepted the requested financial consideration) and thus confirmed that the contract was a valid and binding one. Any mistake is theirs, not yours, and you have not changed the conditions as you accepted them at the outset.
If I give a quotation to carry out some work and it does not go as I might have wished, I cannot go back and change the contract details, claiming a 'mistake', after accepting a written order and taking some or all of the total payment quoted as the 'consideration.
IMHO they are 'trying in on' and you should write to them or, better still, get a solicitor to write to them, informing them that you do not accept the change in contract terms during the currency of this contract.
Of course, they are quite entitled to change the terms at renewal time, or even totally refuse any cover, but not during the agreed contract period. You have paid and received a certificate of insurance - contract legally made.
If I give a quotation to carry out some work and it does not go as I might have wished, I cannot go back and change the contract details, claiming a 'mistake', after accepting a written order and taking some or all of the total payment quoted as the 'consideration.
IMHO they are 'trying in on' and you should write to them or, better still, get a solicitor to write to them, informing them that you do not accept the change in contract terms during the currency of this contract.
Of course, they are quite entitled to change the terms at renewal time, or even totally refuse any cover, but not during the agreed contract period. You have paid and received a certificate of insurance - contract legally made.
Cooperman said:
........contract legally made.
That's what I was thinking.In the meantime I have get new insurance
I'm confused how they only found out about my Son when I rang them, the paperwork they sent out has his name and DOB on , don't they check the policies they are issuing?
Steve
I think it is in the T&C's that the insurancers can cancel at any time, i'm not sure what they do about refunding the premium though.
I do feel for you, well your son mainly, especially if its something in grp 14.
However I think its just a sign of the times, the insurers year on year evaluates the groups and it could be that the associated risk with a 19 year old on a grp 14 vehicle is too high for the premium they quoted. They have no right to ask for more money so they instead they just cancel your policy.
Did they say it was the whole policy or just for your son?
I do feel for you, well your son mainly, especially if its something in grp 14.
However I think its just a sign of the times, the insurers year on year evaluates the groups and it could be that the associated risk with a 19 year old on a grp 14 vehicle is too high for the premium they quoted. They have no right to ask for more money so they instead they just cancel your policy.
Did they say it was the whole policy or just for your son?
vincenz said:
I think it is in the T&C's that the insurancers can cancel at any time,..
No doubt it is in the T&C's but surely they have entered into a contract with me and they can't put 'unfair terms' in a contract, can they?vincenz said:
I do feel for you, well your son mainly, especially if its something in grp 14.
My Son loves driving and I love being able to have a 
when we go out for a meal.BTW it's a K plate BMW 520. Can't (and don't want to!) get him on the Lotus policy
vincenz said:
Did they say it was the whole policy or just for your son?
Whole policy.Steve
This may have nothing to do with your problem but insurance companies look upon it differently if you put your child on your insurance if you only have one car in the household, If you have more than one car they know that the youngster will actually be using one of the cars all the time, that then leads onto the problem of "named drivers"(your child) not being allowed to commute, ie work or college, It's all to do with the social, domestic and pleasure for the policy holder and spouse only, named drivers are only social and pleasure.
skeggysteve said:
Can they do this?
See this thread:http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Slowly Slowly said:
Lots of stuff
Slowly,I can see where your coming from.
Yes, we have more than one car, they ask that question when I got a quote and took out the policy.
OT. What they didn't ask was are these cars on the road!
They also know that Son is not at home for 6 months of the year - stated on paperwork from them.
I'm not trying to 'con' the insurance Co. just want my Son to be able drive the car.
Steve
Deva Link said:
skeggysteve said:
Can they do this?
See this thread:http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I did a search -
Insurance = loads of posts, so I couldn't read them all.
Insurance Companies are a bunch of
= no results 
Steve
skeggysteve said:
Slowly Slowly said:
Lots of stuff
Slowly,I can see where your coming from.
Yes, we have more than one car, they ask that question when I got a quote and took out the policy.
OT. What they didn't ask was are these cars on the road!
They also know that Son is not at home for 6 months of the year - stated on paperwork from them.
I'm not trying to 'con' the insurance Co. just want my Son to be able drive the car.
Steve
skeggysteve said:
vincenz said:
I think it is in the T&C's that the insurancers can cancel at any time,..
No doubt it is in the T&C's but surely they have entered into a contract with me and they can't put 'unfair terms' in a contract, can they?vincenz said:
I do feel for you, well your son mainly, especially if its something in grp 14.
My Son loves driving and I love being able to have a when we go out for a meal.BTW it's a K plate BMW 520. Can't (and don't want to!) get him on the Lotus policy
vincenz said:
Did they say it was the whole policy or just for your son?
Whole policy.Steve
There was a post on here that some insurer (could have been Norwich Union) was cancelling policies of parents with young drivers on them, due to the high payouts. I think they're only breaking the law if they are charging you for cover they are not providing, so they should refund part of the premium if you paid in one go.
As it was your son that was the cause for concern I would of thought it fair for them to just cancel cover for him and leaving you able to drive the vehicle.
Best of luck with sorting some new insurance, i always found tesco and direct line good for insuring younger drivers, or just stick your Son on the Lotus
Edited by vincenz on Thursday 31st May 21:37
On one hand I'm fairly sure the small print of the contract gives them the right to cancel the contract with notice at any time should they choose to do so, in the same way that you have that right.
One the other hand it's bloody shoddy practice for them do decide to cancel your insurance simply because both thier own customer advisors and computer systems did not pick up on the fact that your son was unacceptable to thier underwriting rules. The least they could have done was to continue the insurance until the next renewal and advise you that they won't be able to offer a renewal quote including your son.
Although it's thier right to cancel the contract, I think you are also perfectly within your rights to name and shame the company concerned, as I think the "high handed" attitude of certain insurers when they themselves make mistakes is a matter of public interest to the kind of driving community which Pistonheads contains.
I think it goes without saying that you tell them you won't be going back to them for a quote ever again? And maybe tell them you're telling your friends how you've been treated too?
One the other hand it's bloody shoddy practice for them do decide to cancel your insurance simply because both thier own customer advisors and computer systems did not pick up on the fact that your son was unacceptable to thier underwriting rules. The least they could have done was to continue the insurance until the next renewal and advise you that they won't be able to offer a renewal quote including your son.
Although it's thier right to cancel the contract, I think you are also perfectly within your rights to name and shame the company concerned, as I think the "high handed" attitude of certain insurers when they themselves make mistakes is a matter of public interest to the kind of driving community which Pistonheads contains.
I think it goes without saying that you tell them you won't be going back to them for a quote ever again? And maybe tell them you're telling your friends how you've been treated too?
Am i right in thinking that the policy was still running and you wanted to change the number plate(private plate or similiar). They then informed you they were cancelling the insurance?
A change of number plate would not be considered a material element of a contract, what is insured(the car) has not changed only its identifier(the numberplate has)
If it is not a material element of the contract then there may be some recourse under the Unfair contract terms act 1977. If it was not brought to your attention at the time of contracting then that term may be deemed unfair. Seek advice from an odbundsman or a Lawyer.
A change of number plate would not be considered a material element of a contract, what is insured(the car) has not changed only its identifier(the numberplate has)
If it is not a material element of the contract then there may be some recourse under the Unfair contract terms act 1977. If it was not brought to your attention at the time of contracting then that term may be deemed unfair. Seek advice from an odbundsman or a Lawyer.
bi9_jk said:
Am i right in thinking that the policy was still running and you wanted to change the number plate(private plate or similiar). They then informed you they were cancelling the insurance?
A change of number plate would not be considered a material element of a contract, what is insured(the car) has not changed only its identifier(the numberplate has)
If it is not a material element of the contract then there may be some recourse under the Unfair contract terms act 1977. If it was not brought to your attention at the time of contracting then that term may be deemed unfair. Seek advice from an odbundsman or a Lawyer.
The company wanting to cancel has nothing to do with the number plate, they are merely taking up their lawful right to cancel as per the agreement.A change of number plate would not be considered a material element of a contract, what is insured(the car) has not changed only its identifier(the numberplate has)
If it is not a material element of the contract then there may be some recourse under the Unfair contract terms act 1977. If it was not brought to your attention at the time of contracting then that term may be deemed unfair. Seek advice from an odbundsman or a Lawyer.
I am sure it is in their T&Cs that they can cancel with notice.
It will also be in their T&Cs that the insured party can cancel with notice.
There is nothing unlawful about either party wanting to cancel, that is a specific part of the agreement. The unfair terms acts refer to ones which are one sided, I think this one is quite fair for both sides.
There may be a reputation/customer service issue about cancelling, but nothing unlawful has taken place *as long as both parties have the right to cancel in the agreement*. I would urge the OP to double check, as if it doesnt then he has a case, but on most it will be there.
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