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Original poster

Car insurance cancelled!

36 replies

InsuranceQuestion · 16/04/2021 11:33

Hello have name changed and shamelessly posting for traffic!

DP has had his car insurance cancelled as he didn’t tell them that I’d had a no fault claim (I’m a named driver) when it auto renewed. No deceit intended, he just didn’t realise it was needed.

They wrote to him saying it was being cancelled and he wouldn’t have cover on date x. When he rang them up they actually advised him that he could cancel the policy himself before this date, and then he wouldn’t need to declare the cancellation when getting new quotes from other providers.

This sounds wrong to me and I’m worried that if he does this his next insurer could find out and treat it as a non disclosure and unless I take him off my car insurance I need to decide whether I need to tell my insurer about this.

Any mumsnetters who have experience of this / know the answer?

OP posts:
canyon2000 · 16/04/2021 11:42

He will have to declare that his insurance was cancelled. He will quite probably find it hard to find someone to insurance him for a reasonable amount now. He should have just cancelled the policy himself then he wouldn't have this problem!

Original poster
InsuranceQuestion · 16/04/2021 11:46

Yes sorry that’s my exact question. He has cancelled the policy as they suggested but the advice which he was given over the phone sounds incorrect to me - I can’t see how it makes sense that he doesn’t have to disclose the cancellation by his insurer, as they did still cancel it even if he got in first.

I’d love this to be correct as it would save us money.

OP posts:
EventuallyDistracted · 16/04/2021 11:48

Not realising it was needed is no defence, when the renewal documents came through they will have asked him to declare any changes which would have included this claim. Has he still got time to cancel or has it already happened?

PinkCookie11 · 16/04/2021 11:48

He’s technically beat them to it and cancelled it. So wouldn’t have to disclose.

Original poster
InsuranceQuestion · 16/04/2021 11:49

@EventuallyDistracted

Not realising it was needed is no defence, when the renewal documents came through they will have asked him to declare any changes which would have included this claim. Has he still got time to cancel or has it already happened?
Yes I understand that and agree with it.

He has cancelled it but now we are unsure whether he has to declare it or not.

OP posts:
EventuallyDistracted · 16/04/2021 11:49

x-posted - they haven't cancelled, they have warned him that they intended to on x date. So he has avoided this by cancelling it himself.

LarsErickssong · 16/04/2021 11:51

Yeah the insurance company are correct, they have given him notice that it will be cancelled on x date, so if he has done it prior to then he won't have to declare it in future as technically they haven't cancelled it.

Original poster
InsuranceQuestion · 16/04/2021 11:51

@PinkCookie11

He’s technically beat them to it and cancelled it. So wouldn’t have to disclose.
But insurance contracts are contracts of utmost good faith and you’re supposed to disclose anything which is relevant. You aren’t supposed to get out of disclosing on a technicality when you are fully aware that they would have taken the cancellation into account.

If the insurer hadn’t recommended he cancel this wouldn’t even had crossed my mind as an option.

What I’m really after is anyone who works in the industry who has actual knowledge that this is a recognised loophole

OP posts:
PinkCookie11 · 16/04/2021 11:55

So why wasn’t it disclosed that you had a claim?
He’s cancelled it himself regardless of knowing or not it’s irrelevant as it’s now cancelled. They aren’t cancelling the policy.

Herdwicklambs · 16/04/2021 11:56

When was the no fault claim, OP? My DH had a similar problem when he was contacted by his insurance company. This was two years ago. The insurance wasn't cancelled, but there was an email regarding a non fault claim from 2014 when a neighbour reversed into his car. He hadn't disclosed it on the original quote which was a genuine oversight. When it came to renewal, the five years was up where it had to be disclosed but the insurance company stated they were not going to offer him insurance at renewal. He disclosed this at renewal with his new insurance company and had a conversation with the new company. They were absolutely okay with this disclosure and didn't penalise him.

Original poster
InsuranceQuestion · 16/04/2021 11:58

@PinkCookie11

So why wasn’t it disclosed that you had a claim? He’s cancelled it himself regardless of knowing or not it’s irrelevant as it’s now cancelled. They aren’t cancelling the policy.
He will have got the renewal email but because it was a different vehicle he didn’t connect the dots and realise he should tell them.
OP posts:
Original poster
InsuranceQuestion · 16/04/2021 12:03

@Herdwicklambs

When was the no fault claim, OP? My DH had a similar problem when he was contacted by his insurance company. This was two years ago. The insurance wasn't cancelled, but there was an email regarding a non fault claim from 2014 when a neighbour reversed into his car. He hadn't disclosed it on the original quote which was a genuine oversight. When it came to renewal, the five years was up where it had to be disclosed but the insurance company stated they were not going to offer him insurance at renewal. He disclosed this at renewal with his new insurance company and had a conversation with the new company. They were absolutely okay with this disclosure and didn't penalise him.
It was last year, someone reversed into me and my insurer just sorted it out. Very annoying as I assume if he’d realised and disclosed it there would have been no problem.
OP posts:
PinkCookie11 · 16/04/2021 12:03

The company hasn’t cancelled, he has, so I still think he wouldn’t have to disclose

PinkCookie11 · 16/04/2021 12:06

Did they not offer to add it for a certain charge?

Herdwicklambs · 16/04/2021 12:10

InsuranceQuestion

My understanding is that a no fault claim has to be disclosed within five years. We now no longer have to disclose this non fault claim. However, he has had Insurance refused so we do disclose this at renewal. Despite the fact that his insurance wasn't cancelled, it was refused.

I agree with PinkCookie - as he had cancelled before they did, it sounds as though he wouldn't have to disclose. But, as a reserve to completely cover yourselves going forward, to have the conversation on future providers.

Herdwicklambs · 16/04/2021 12:19

@PinkCookie11

Did they not offer to add it for a certain charge?
That's what happened to us, Pink. We had to pay an additional charge.
FishyMcFishyfingersFace · 16/04/2021 12:20

You can probably liken cancelling his insurance himself before the company does with something going wrong at work that means you would get the sack but your boss gives you the option to resign with a good reference instead, it also looks better on your CV. You wouldn't tell a prospective employer you were sacked as technically you weren't - he cancelled his insurance, it wasn't cancelled by the insurance company. It doesn't go on his record.

It's referred to as 'Jump before you are pushed' - works for other areas of life than just your job.

Original poster
InsuranceQuestion · 16/04/2021 12:21

@Herdwicklambs

InsuranceQuestion

My understanding is that a no fault claim has to be disclosed within five years. We now no longer have to disclose this non fault claim. However, he has had Insurance refused so we do disclose this at renewal. Despite the fact that his insurance wasn't cancelled, it was refused.

I agree with PinkCookie - as he had cancelled before they did, it sounds as though he wouldn't have to disclose. But, as a reserve to completely cover yourselves going forward, to have the conversation on future providers.

This is my thinking. If he doesn’t declare it and then he gets his next policy cancelled as a result we’re screwed as we’d then have to disclose both cancellations.

The fact that a few people on the internet and his previous insurer said it was ok isn’t going to help us!

If I could find anything in writing anywhere on this being a recognised loophole that would be different but this feels like too much risk

OP posts:
Original poster
InsuranceQuestion · 16/04/2021 12:22

You can’t. Insurance contacts are different - see above they are contracts of ‘utmost good faith’

OP posts:
EventuallyDistracted · 16/04/2021 12:22

If in doubt I ask whether I need to declare something, the calls are recorded so you have proof you have asked the question.

Original poster
InsuranceQuestion · 16/04/2021 12:22

Sorry meant to quote the post comparing it to employment situation.

OP posts:
Herdwicklambs · 16/04/2021 12:26

The question on quotes is two-pronged. "Have you ever had insurance cancelled or refused?"

We had a refusal from our then current provider. We just disclose it.

PinkCookie11 · 16/04/2021 12:26

Why don’t you just ring a company up and ask?? Save the stress of trying to find something in writing.
All they’ll say is yes or no then you know what to do next

QforCucumber · 16/04/2021 12:28

You're overthinking it. The question asked is 'Have you ever had a policy cancelled by the insurer?' it is specific. Your husband has not had a policy cancelled by his insurer because he cancelled it, therefore you say no.
He does have to declare the claim on future quotes.

TakeYourFinalPosition · 16/04/2021 12:31

Did they cancel, or was it voided?

I believe that's the important bit, and the fact that they've given him notice and allowed him to cancel himself before that suggests that it was voided...

But if they've cancelled it due to non-disclosure, he'll need to declare it. They will.

It's probably worth calling them back, confirming what has happened, and asking for them to confirm via email/letter whether they are classing this as a policy that he has cancelled or that they have cancelled, and whether they'll be reporting it as a cancelled policy.

Or in short, it's vital that you know if this is being reported as a cancelled policy on the database or not. You've got no way of knowing other than from the insurer, but I'd want it in writing from them, as the person who has suggested it won't be reported if he cancels first won't be the person responsible for reporting it to the database.