Backdating Car Insurance Policy

[mr mg zr]

Hello everyone,

 

Recently i was involved in a collision, both of us believe it was each others faults. However that night i rang my insurance company and they gave me the shocking news that my insurance had been canceled since the 5th of December. This was breaking news as i have received no correspondence via phone, post, email or text.

 

They said the reason for the cancellation was a direct debit failure. I received no contact from the bank nor insurance provider and was left completely in the dark. Surely a call for a customer would be sufficient.

 

They will not backdate my insurance and only offered to restart it as of today, they accept no responsibility and only state that all there correspondence is done via post, but the problem is i have received no such letter.

 

What can i do? i have letters from when i took the insurance out saying that the first direct debit will be taken on the 1st of Jan 2012. Surely they should of contacted me via phone or email as its a urgent a legal matter.

 

Its left me in real bad spot and i have not got a clue on what to do next.

 

Thank You

[johnvernon74]

I think I have read that Insurance that is paid by direct debit and fails for no funds is cancelled. Google it but I think the insurance company must give you written notice - possibly 7 days? Technically you were driving without insurance and therefore I'd suggest you seek legal advice.

[mr mg zr]

I think I have read that Insurance that is paid by direct debit and fails for no funds is cancelled. Google it but I think the insurance company must give you written notice - possibly 7 days? Technically you were driving without insurance and therefore I'd suggest you seek legal advice.

 

Hello and thank you,

 

Yes I understand I should of been been given writen notice, however I have received no letters or and other typea of correspondence suggesting my insurance had been cancelled. Nothing.

[johnvernon74]

Hello and thank you,

 

Yes I understand I should of been been given writen notice, however I have received no letters or and other typea of correspondence suggesting my insurance had been cancelled. Nothing.

 

They will argue that you failed to keep up the contract, and I assume they are right. I think a letter is deemed served after 2 working days. I think you are going to have to get legal advice as it apperas you are in the wrong. Try google just in case but not so sure. Good luck

[gezwee]

Hello everyone,

 

Recently i was involved in a collision, both of us believe it was each others faults. However that night i rang my insurance company and they gave me the shocking news that my insurance had been canceled since the 5th of December. This was breaking news as i have received no correspondence via phone, post, email or text.

 

They said the reason for the cancellation was a direct debit failure. I received no contact from the bank nor insurance provider and was left completely in the dark. Surely a call for a customer would be sufficient.

 

They will not backdate my insurance and only offered to restart it as of today, they accept no responsibility and only state that all there correspondence is done via post, but the problem is i have received no such letter.

 

What can i do? i have letters from when i took the insurance out saying that the first direct debit will be taken on the 1st of Jan 2012. Surely they should of contacted me via phone or email as its a urgent a legal matter.

 

Its left me in real bad spot and i have not got a clue on what to do next.

 

Thank You

 

Was there an initial payment due prior to this date [above in bold] at inception...... debit/credit card fail?

 

Gez

[mr mg zr]

The initial payment was a deposit which cleared fine, I even receievd a confirmation letter of direct debit.

I would of resolved it if I had received a letter but I did not.

[gezwee]

The initial payment was a deposit which cleared fine, I even receievd a confirmation letter of direct debit.

I would of resolved it if I had received a letter but I did not.

 

Deposit paid, 1st d/d not due until a future date........ unless I'm missing something the only breach of contract [financially] is theirs.

 

Is it possible they've cancelled the wrong policy?

 

Who is the insurance provider?

 

Gez

[mr mg zr]

Deposit paid, 1st d/d not due until a future date........ unless I'm missing something the only breach of contract [financially] is theirs.

 

Is it possible they've cancelled the wrong policy?

 

Who is the insurance provider?

 

Gez

 

Hi, that is correct, deposit paid early november and 2 of my letters state DD for the 1st of jan 2012.

 

My provider is the AA, no the only policy I had with them.

 

On the phone earlier they accepted no responsibility.

[wonky100]

We too have had a car insurance policy cancelled without our knowledge and continued to drive without insurance. Unfortunately, we weren't involved in an accident. I think our insurer at the time was Sheila's Wheels.

 

Our policy was cancelled around the renewal stage when I informed the sales guy that I would be shopping round as I wasn't happy with the increase in premium. I never told them to cancel. The sales guy was not happy that I was shopping around and apparently cancelled the policy!

 

I noticed that the first payment hadn't been taken from my bank account and contacted the insurer. The policy WAS back dated and I received compensation which equated to the increase in premium. I cancelled the insurance at renewal the following year (2011).

 

So I believe that if the matter is out of your control, the insurer can backdate. Make a complaint following their complaints procedure and take it all the way to the FSA.

 

Good luck (and a Happy New Year too!)

[gezwee]

Have to admit it beats me...... first suggestion would be to bring to the attention of one of the site team [little black triangle at the bottom left of your posts], see if they can suggest someone on here who can assist you. I've only a limited knowledge of how ins co's operate.

 

Barring that, my first thought would be to write to their head office demanding an explanation of their breach

 

It's certainly not unusual for the 1st d/d to be effective at month 2, just wondering if its been set up incorrectly on their system....... if it has and they've arbitrarily cancelled the insurance where no contractual breach exists I'd want to take them to task.

 

Gez

[wonky100]

Sorry all,l but I work for an insurance company (and OH worked in motor insurance for over 20 years), so would definately advise that you follow the complaints procedure of whichever company it is to the letter.

[mr mg zr]

Sorry all,l but I work for an insurance company (and OH worked in motor insurance for over 20 years), so would definately advise that you follow the complaints procedure of whichever company it is to the letter.

 

ok thank you guys.

 

would the complaints procedure information be on there website? or would i need to ring?

 

The first deposit payment was made via Visa Debit over the phone. The next installment (01/01/2012) was suppose to be the direct debit.

 

should i tell them of my incident? the other person has informed there insurance provider.

[wonky100]

They should have sent you the complaints procedure when they sent out the policy document/schedule. Did you get a renewal schedule this time? If not, refer to last years document/schedule (or failing that check out the website).

 

I think you need to tell them of the incident, it's a material fact even if you're not making a claim (as hard as that sounds). But haven't you already told them of the incident? You say you rang them the night of the incident. Hope that doesn't work against you, but if you accepted the renewal/new business premium, paid your 1st instalment and the next payment wasn't due until 01.01.12 what grounds have they got for cancelling your insurance and why should the claim make a difference? Your renewal premium shouldn't be effected mid term but more than likely will be increased next renewal.

 

If you don't follow the complaints procedure to the letter then the FSA won't investigate should it get that far. The complaints dept are not always in the head office (it isn't at the insurance co I work for anyhow).

 

Good luck x

[BRIGADIER2JCS]

The simple answer I'm afraid is that it is the individuals

responsibility and legal obligation ti ensure that the motor

insurance is in place and legal, it would be totally irresponsible

and illegal to backdate cover.

It solely the individuals problem, of course Insurerers

will send reminders etc., but the failure to receive such

does not in anyway remove the ultimate responsibility

of the driver/owner to make sure the insurance is in.place.

An offence has been commited no insurer will accept liability.

[mr mg zr]

They should have sent you the complaints procedure when they sent out the policy document/schedule. Did you get a renewal schedule this time? If not, refer to last years document/schedule (or failing that check out the website).

 

I think you need to tell them of the incident, it's a material fact even if you're not making a claim (as hard as that sounds). But haven't you already told them of the incident? You say you rang them the night of the incident. Hope that doesn't work against you, but if you accepted the renewal/new business premium, paid your 1st instalment and the next payment wasn't due until 01.01.12 what grounds have they got for cancelling your insurance and why should the claim make a difference? Your renewal premium shouldn't be effected mid term but more than likely will be increased next renewal.

 

If you don't follow the complaints procedure to the letter then the FSA won't investigate should it get that far. The complaints dept are not always in the head office (it isn't at the insurance co I work for anyhow).

 

Good luck x

 

I have found the procedure on the website and i am currently writing a detailed email with appropriate dates etc. I am also confused as to why they cancelled it early. Surely they would of cancelled it after the 1st of January if payment was not available or taken.

 

No i have not told them regarding the incident, however i am detailing it all in the email.

[mr mg zr]

The simple answer I'm afraid is that it is the individuals

responsibility and legal obligation ti ensure that the motor

insurance is in place and legal, it would be totally irresponsible

and illegal to backdate cover.

It solely the individuals problem, of course Insurerers

will send reminders etc., but the failure to receive such

does not in anyway remove the ultimate responsibility

of the driver/owner to make sure the insurance is in.place.

An offence has been commited no insurer will accept liability.

 

i agree with you that it is the customers responsibility to make sure they are road legal and insured etc. All the documentation i have received states the first installment is due 01/01/2012 so they have no grounds to cancel my policy before that date as they DO NOT need to take payment before this date.

[BRIGADIER2JCS]

A DD failure on any installment motor insurance

policy is a default on the contract premiums are

paid in advance, therefore the insurance is correctly

cancelled, back again to the individuals responsibility

no one else is to blame.

That is fact.

Vigilance is essential II have cars on

inst. insurance and check monthly to

ensuer DDs are met.

[gezwee]

A DD failure on any installment motor insurance

policy is a default on the contract premiums are

paid in advance, therefore the insurance is correctly

cancelled, back again to the individuals responsibility

no one else is to blame.

That is fact.

Vigilance is essential II have cars on

inst. insurance and check monthly to

ensuer DDs are met.

 

Brig

 

1st instalment is not due until tomorrow!

 

Gez

[BRIGADIER2JCS]

Brig

 

1st instalment is not due until tomorrow!

 

Gez

 

Hi Gez, Post 1# FAILURE OD DD PAYMENT 5th. DEC 2011 sorry END of policy

cancelled.

 

Brig

[mr mg zr]

Hi Gez, Post 1# FAILURE OD DD PAYMENT 5th. DEC 2011 sorry END of policy

cancelled.

 

Brig

 

Firstly thank you for your kind advice, I really do appreciate all of the replies.

 

The AA told me the policy had been cancelled on the 5th of December but I had never been notified. If I had been notified then I would have resolved the issue immediately.

 

All my paperwork states that first payment is on the 1st of January 2012.

[gezwee]

Hi Gez, Post 1# FAILURE OD DD PAYMENT 5th. DEC 2011 sorry END of policy

cancelled.

 

Brig

 

 

Brig

 

Not wishing to get in a ping-pong of posts on this......... 1st instalment due 01.01.12...... how can a failed d/d be an effective cause of breach a month before it falls due?

 

Gez

[BRIGADIER2JCS]

Ahh the AA I have a couple of cases on file about

this situation, I will not raise your hopes on this,

they have acted correctly in line with the law and

the Ts & Cs of installment insurance policies.

The usual method od dealing with a missed DD

payment is to immediately send a default notice

giving you 7 days to correct the default and continue

the insurance, failure to correct the default results

in the cancelletion of the policy, unfortunately the duty

of care falls upon the ''insured'' to rectify on time,

the fact that such a DN was not received will not help

as they will be able to prove such a document was posted.

The payment due 01/01/2012 is not relevant as it is the

December 2011 DD that has failed premiums are paid

in advance.

After the hols I look at my files and get back to you.

[BRIGADIER2JCS]

Brig

 

Not wishing to get in a ping-pong of posts on this......... 1st instalment due 01.01.12...... how can a failed d/d be an effective cause of breach a month before it falls due?

 

Gez

Gez I know it's NYE but OP is insured with AA policy renewal date 01/01/2012 existing policy

December 2011 DD unpaid as required policy invalid, premiums are/must be paid in advance.

Brig.

Trust an old rozzer,

[gezwee]

Cheers Brig

 

Would seem a pretty unfair relationship if they could arbitrarily discharge liability on the basis that it takes them up to 6 weeks to set up 1st d/d instalment.... I must admit my only knowledge of their payment set-up is similar.

 

Used them a couple of years ago, first instalment by debit card in May, bank details taken for d/d...... second instalment [2 months premium] not drawn down until July - in line with their written advice.

 

Gez

[BRIGADIER2JCS]

Cheers Brig

 

Would seem a pretty unfair relationship if they could arbitrarily discharge liability on the basis that it takes them up to 6 weeks to set up 1st d/d instalment.... I must admit my only knowledge of their payment set-up is similar.

 

Used them a couple of years ago, first instalment by debit card in May, bank details taken for d/d...... second instalment [2 months premium] not drawn down until July - in line with their written advice.

 

Gez

 

It is not just co policy, if a co wishes to allow such

discreation they are technically wrong,

THE law says insurance effective (paid for).