Car Insurance - can the insurer cancel my policy like this?

oakshade

Hi all,

My car insurance policy is due soon. I found a better quote with another provider, paid my deposit (I'm paying by DD) and received my disk and cert.

In the meantime I unfortunately had a minor accident. I spoke to the other party and I dont believe they will claim (but you never know). My current insurer is dealing with any potential claims (I'm not claiming myself either) and told me I should tell my new insurer. I just did and they have cancelled the policy before it takes effect.

I assume they are well within their rights to do so but said its worth checking with you all.

Thank you.

ytpe2r5bxkn0c1

Yes, there is a material change to the facts they had.

coylemj

The new crowd would have accepted you as a policyholder based on there being no claim(s) in the pipelne. The fact that that there now is one means that you have inadvertently breached those conditions so they are within their rights to decline your business.

emeldc

The new insurer wont allow your NCB if there is a posibility of a claim on your old policy.

coylemj

emeldc wrote: »

The new insurer wont allow your NCB if there is a posibility of a claim on your old policy.

The NCB isn't the issue, they simply won't accept his/her business, period.

mathepac

Allie Numerous Thumbnail wrote: »

Yes, there is a material change to the facts they had.

+1 Accident plus a potential claim that must be resolved with current insurer has resulted in the proposal being rejected by the new insurer. This is standard practice AFAIK.

MugMugs

Notwithstanding any of the above, most if not all insurers have a get out clause in their policies which gives them the right to cancel the policy at any time without giving a reason.

For the most part, you're probably going to have to renew with your current insurer until this claim is sorted out.

Marcusm

oakshade wrote: »

Hi all,

My car insurance policy is due soon. I found a better quote with another provider, paid my deposit (I'm paying by DD) and received my disk and cert.

In the meantime I unfortunately had a minor accident. I spoke to the other party and I dont believe they will claim (but you never know). My current insurer is dealing with any potential claims (I'm not claiming myself either) and told me I should tell my new insurer. I just did and they have cancelled the policy before it takes effect.

I assume they are well within their rights to do so but said its worth checking with you all.

Thank you.

I suspect they will have voided the policy on the basis that you withheld disclosure of an accident irrespective of whether or not there was a claim. Was the acccident before you sought the new quote or after?

MugMugs

Marcusm wrote: »

I suspect they will have voided the policy on the basis that you withheld disclosure of an accident irrespective of whether or not there was a claim. Was the acccident before you sought the new quote or after?

The OP reads as if the incident occurred after the new policy was already applied for.

As such, the Insurer could not state that there was a case of Non Disclosure here especially given that they did notify the new insurer of the incident once aware.

oakshade

Thanks all... to clarify, the quote was provided and policy issued before the accident occurred. I have renewed with my old provider (albeit for 80e more). My NCB was not impacted for this year but may well be next year.