Insurance are rip offs

[tawelfryn]

Does anyone work in Insurance?
I am not happy, took a new policy out for my van, paid for in full, policy arrives, certificate, happy days,
2 days later after 3 weeks since the original quote, recorded letter, the policy is cancelled.
Phones them up to ask why, only to be told the price quoted and paid is too cheap, surely theres a law against this?
Now its costing me time and money sorting out a new insurance

 

[RigidRaider]

Maybe they discovered something that you forgot to tell them? They are all linked up nowadays to exchange info on customers.

 

[tawelfryn]

Maybe they discovered something that you forgot to tell them? They are all linked up nowadays to exchange info on customers.

Yep I know they are all linked up, no lies were told, or forgotten information "withheld", they told me on the phone it was because they quoted too cheap

 

[JohnD]

It is at least worth writing a letter of complaint to their head office, head up your letter "Letter of Complaint" so it goes through their formal process, and say that you do not believe you have been treated fairly, and you have suffered trouble and expense as a result.

You might get a bit of compensation.

 

[big-all]

i would have though after the cooling off period it was legaly binding on both sides!!!

or was it a 4 week cooling off period!!!

 

[Whitespirit66]

If your insurance company quoted you a price, you accepted that price and you paid for your insurance, then you and the insurance company have entered into a contract. The company cannot cancel the cover because of THEIR mistake.
A word with your local trading standards (or telling your ins. co. that you will contact t. standards) may work wonders.

Exactly the same thing happened to me a few years ago, but the insurance co. asked me for more money 2 weeks after I had paid them. They backed off when I threatened to involve trading standards. Why didn't your ins. co. ask for more money from you? Makes me think there may be another reason.

 

[tawelfryn]

Thanks for the replies.
Latest update, the insurance company phoned me today as a courtesy call to see if i was satisfied why it is cancelled, my reply of was of course not, and they had breached the contract, I told them I have contacted the Financial Ombudsmans Service, and they will be receiving a letter.
I also told them that I will be claiming any additional costs from them, time, loss of work sorting this out etc.
The customer services, said they would ring me back, when they did, they said that the proper quote should have been £160 more than I paid, and then asked me if I was willing to pay £50 extra towards it, I said I was waiting for a friend who works in insurance to come back with a quote, and would let them know later on, my decision

 

[Whitespirit66]

By doing this, they are almost admitting liability. Phone them back, ask to speak to a manager/supervisor, and tell them that unless your cover is reinstated for the original quote, you will go to the Insurance Ombudsman and Trading Standards. Should do the trick.

 

[^woody^]

They do seem to be in breach of contract and their reason for cancellation is not a valid one

You can sue them for any costs (losses), plus the difference in price of a policy from another insurer who provides the exact same cover.

So you don't have to go for the next cheapest, but one with the same level of cover and then take out a claim in the county court for the difference - which is your "loss of bargain" for the insurers breach of contract.

But first check on any complaints procedure for the company or the insurance industry.

 

[RigidRaider]

Do your worst. The mistake was probably made by some idiot kid who can't spell or do simple arithmetic. My wife works in the financial services industry and can't believe the dross they recruit from amongst school leavers. Many are illiterate and inarticulate and spend all day texting their pals rather than working.