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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70416
Experience:  Over 5 years in practice
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Hi I called to update my car insurance with my wife driving

Customer Question

Hi
I called to update my car insurance with my wife driving speeding fines (SP30),
one in 2011 and another in 2012, and the insurer wants to backdate the premiums costing us £350 for the first 1, then additional £470 for 2nd, then an additional £250 for this year.
Can they do this, what are my options ? They said if they don't here from me in 14 days (to pay up) they would cancel my policy too.

Cheer

Tony
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

They will cancel your policy if you don't pay I'm afraid. They are actually perfectly entitled to cancel your policy now as this is a relevant non disclosure. They are offering you the chance to pay the difference to avoid the complete cancellation of your policy.

I'm afraid they are free to do this. They are entitled to the difference in the amount this would have cost and the amount that it did plus some admin costs.

I have to say that these hikes do seem rather heavy but that is a matter for them. You could always complain about the sums of the increases to the financial services ombudsman in the hope that they reduce the amount but you would need to pay now to stay on the road.

Obviously you can try to negotiate with them in the meantime.

Can I clarify anything for you?

Jo
Customer: replied 3 years ago.

Hi Jo,


 


where would I stand then if I were to not pay at all. send a fax to cancel the policy and immediately seek a new insurer


 


Tony

Expert:  Jo C. replied 3 years ago.
You can do that but you will be liable to pay for the rest of the year.

If you paid in full already then you will not get a refund and if you pay monthly then you are liable until the end of the year I'm afraid.
Customer: replied 3 years ago.

I'm ok with that, but what about the backdated premiums they want ?

Expert:  Jo C. replied 3 years ago.
They could sue you for that but they probably won't.

There is a risk they could report it to the police as an insurance fraud but thats not all that likely either.
Jo C. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

So lastly then, I would be better off looking around for a better deal and then cancel ?

Expert:  Jo C. replied 3 years ago.
Well, you are taking a risk if you do that. You must understand that. They could also add a default to your credit rating which is more likely than a law suit.

But if you are happy to run that risk then that is open to you.