Car insurance claim void.

[Mossycat]

OK here's my take on it.

 

Insurers know full well that young drivers sometimes own cars and get the insurance in the name of an older person (usually a parent) and get added as a named driver. This has already been discussed earlier.

 

Patdavies is correct in that the vehicle doesn't always have to be registered in the name of the policyholder PROVIDING there is 'Insurable Interest', hence why lease cars etc belong to someone else other than the policyholder.

 

Insurers normally ask 'Are you the registered keeper' on the proposal form, if the answer 'NO' is given they ask why and decide if they will accept the reason you give.

 

I feel sure that the CIS will have asked this (or at least the broker will have). If that's the case then you were not entirely truthful at the inception of the policy and FOS will likely side with the CIS.

 

In my experience the main reason why an 'extra' car is insured in the name of the parent yet registered to a son/daughter who lives at the same address is quite simply to get cheaper insurance.

 

I'm sorry to say that having read the whole thread I think the CIS are justified in refusal and I think it unlikely they will be made to overturn this decision.

 

Mossy

[patdavies]

I'm sorry, but I faikl to see how this can be a case of fronting

 

From the OP's first post

 

My husband has always been the policy holder,and main driver, with our son as named driver, the V5 is in our sons name.

As the father, regardless of vehicle ownership and keepership, is the main driver, the requirement stands that the policy should be in his name. In fact, if the son insured the car and his father the main driver, then he would actually be fronting for his father!

 

The only 'get out' for the insurer is that it would appear that somebody (policyholder or broker) has answered the question "Are you the RK?" incorrectly. The is probably the broker as the OP ppints out that the broker's record show her as the RK

[Mossycat]

With respect Pat (and I am NOT saying that this is the case here) but insurers usually find out about fronted policies when a claim is made (usually a total loss or theft claim when documents are asked for).

 

Then they see who is paying for the car (if finance is involved), and who is named on the V5. When they point this out the policyholders' then realise what they have done and their first excuse is 'the parent is the main user', which doesn't stack up with the facts (finance etc).

 

Like I said I am NOT saying that this is the case here, I'm merely explaining it from an insurers point of view.

 

As for son fronting dad, yes that happens but usually it's not cheaper to do that.

 

Mossy

[patdavies]

Mossycat, I fully accept your point re. the insurer's highly-suspicious minds.

 

However, we can only go on the information posted by the OP and trust to its veracity

[Mossycat]

Mossycat, I fully accept your point re. the insurer's highly-suspicious minds.

 

However, we can only go on the information posted by the OP and trust to its veracity

 

Totally agree that we should go with what the OP posts, I was only stating it from an insurers point of view. If you know what you are up against you get a better understanding of how to deal with it.

 

Mossy

[JonCris]

The whole point is which driver commands the highest premium & is it being avoided.

 

The answer must be no as the less experienced driver has been declared & the premium set accordingly

 

Therefore I fail to see how the insurance company can wriggle out of their liability when there has been no contractual/premuim loss to them

 

As is so often the case with insurers they are trying to get out of paying based on an alleged technicality

[daviet1976]

From what the OP has stated, it sounds as if the alleged fronting was not investigated properly.

 

The discrepencies should have been queried by an investigator. There's no way this would hold up in front of a judge.

 

What evidence does the ins co have?

 

They have the same evidence as we have in these posts it would appear!

 

The Ins Co appear to have suggested a case of fronting. But it's not.

 

What they may say is that the Insured should have disclosed material facts. But I fail to see how the Insured could have benefited from disclosing the "truth".

 

From the OP, the son is NOT the main user.

 

It's a pity we've not been kept updated.....

Edited October 27, 2008 by daviet1976
spelilng...need to get a splel chekcer

[atissue]

i just want to thank everyone on this thread as i too was in a similar situation with the additional driver- under 25, and fronting issues that the policy was voided. I set out letter and evidence, asked for transcripts of converstaions and explained that it was not non-disclosure but simple misunderstanding, minor issue. apologised etc but also firmly stated that i was willing to take to FSO. immediately reinsated my policy.

it was a very distressing few months during, had absolutely no transport, insurance would not talk and explain on phone when I rang except being told ''you're policy is not in order'. we will contact you etc. you're policy on hold and my damaged car was just sat at garage.

had elderly mother and hospital appts, daily had to walk miles to pick up kids from school- no curtesy car.

bloody post would not come properly in my area regularly- my magazine subscriptions used to come 2 weeks later- 'weather'.

so relieved and i just have to thank you all, took advice set out and it worked.

sorry if not making sense.

[SOO DISGUSTED]

As someone who has an ongoing complaint of over 1 year with CIS........I don't think the issues lie with the basic ins and out or rights and wrongs?? My firm belief is it lies in very much with the fact that they will do anything to avoid paying out? Sad....But very true x It would appear that they will say and do anything to avoid paying out in these financial times. I do hope things work out well for you x

[SOO DISGUSTED]

I would also suggest to anyone who wins a nightmare claim against CIS......................Go directly to their nearest national newspaper and tell their story. I am the daughter of a taxi business owner and cannot believe the treatment I have had from this company??? I have never crashed a car IN MY LIFE and have had THE most horrific time with this company? Ironic as it is ............Only changed to them when the financial climate changed and I was looking for a better deal??? Go figure? Sometimes the grass aint always greener! Good luck! x