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Elephant Car Insurance - Cancelling Policy & No Refund


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Apologies if this is covered elswhere. Please do feel free to direct me to another thread.

 

I got car insurance from Elephant approximately 1 1/2 months ago, full comp and no claims protected. I paid up front for the premium. Unfortunately i'd only had the car two weeks or so when my house was broken into and my car stolen.

 

Elephant have written to me cancelling my car insurance (though they're dealing with the claim) as they claim there is no longer a vehicle to cover. Whilst I agree this is a sensible move they are however refusing to give me a pro-rata refund for the premium i have paid - e.g. the 10 1/2 months i would have had left to run.

 

Elephant argue that this is similar to a hire purchase agreement where if you buy something on a 12 month hire purchase agreement and that item is stolen in month 1 you are still liable to pay for the remaining 11 months. I agree but this is nothing like a hire purchase agreement. If they're no longer covering the car then surely they should refund.

 

They are citing their terms and conditions and of course they have a discretion to cancel any policy without reason on giving 7 days notice if a claim is made.

 

I want to fight this as this effectively increases my excess by the 10 1/2 months premium remaining, and indeed i think it is morally reprehensible after 11 years of no claims for them to act this way.

 

Anyway morality aside, has anyone any similar experiences???

 

I am going to approach this from an UCTA point of view but wonder if anyone knows of any decisions on this very issue.

 

I also wonder if I don't get anywhere, whether its simply worth attempting to recover the 10 1/2 months worth of premium in small claims court - i.e. its £30 cost to me and Elephant may decide its not worth sending lawyers to court to defend a £600 claims - particularly one that may question the enforceabiltiy of their T&Cs.

 

Any help would be most appreciated.

 

Thanks in advance!

 

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This is standard practice I'm afraid. If a car is a total loss, you still have to pay the outstanding premium right up until the end of the 12 month period. This is because by making a total loss claim you have effectively used all the services provided by the policy.

 

However, Elephant could allow a substitute vehicle to be insured for the remainder of the period.

Edited by LemonTwist
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Hi Lemon Twist - thanks for your reply :-) I did suspect that it was standard practice, indeed a friend of the family who works in the industry has suggested as such.

 

I think I'll try the substitute vehicle cover as a good fall back position - though Elephant kindly informed me that if i'd like to get another car they'd be more than happy to give me a quote for new cover. What planet are these guys on from a marketing perspective. Do they seriously think i'll ever take out a policy or recommend them to anyone ever again!

 

Neverless although "standard practice" i'm not convinced this is lawful. I'm a solicitor myself (no experience of consumer law hence the cry for help) and i know that wretched lawyers deliberately draft T&Cs knowing they probably breach UCTA (or similar legislation) but hoping that in 99% of cases Joe Public will not have the expertise, patience and time to pursue a company. Sadly i took the insurance out before the new EU directives on consumer protection - maybe they'd have given a little more ammunition!

 

Am curious to know if anyone has tried claiming this breaches UCTA though. My initial feeling is that it does but i'm sure there must have been rulings on this very issue!

 

When you've been burgled (3 times in as many weeks) last thing you need is an insurance company trying to wriggle off the hook!

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Hi Vusy,

 

No they simply terminated the policy - though i suspect they've not terminated it correctly but that's a different matter. There was no offer to cover me if and when i get a new car.

 

Elephant have been terrible. As soon as it was stolen i rang up on their out of hours line and left details. No one rang me back despite me ringing time and time again. I got a curt text message saying ring immediately and again no one would deal with it. I spoke to them yesterday and they told me no one would speak to me until i sent my documents to them.

 

Can't help but think this is going to be a real battle with them!

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UPDATE - my car was involved in an armed robbery of a security van. It has however been recovered though am waiting for confirmation of no damage. Am hoping now that as no sum has been paid (and indeed i'm not sure how far elephant are with dealing with it) that i can simply recover the car and not put the claim in. Of course this requires elephant to agree to this, and that they will rescind their termination of my policy. Fingers crossed!

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Elelphant should not cancel the policy but await you purchasing a replacement - or in this instance it's now recovered. Therefore if repairable then you should still have it covered under the same policy.

 

It is an annual policy therefore you could make numerous claims.

 

Suggest you go back to Elephant & insist they re-instate the policy. If not, complain to the ombudsman - details will be in your policy.

Can't recall who the actual insurance compamy is that underwrites elephant.com policies - could be UK Insurance Ltd which is owned by Direct Line & ultimately RBS.

:p :p If my advice as been of help, please give me a quick click on the scales to your right ;) ;) :)
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Elelphant should not cancel the policy but await you purchasing a replacement - or in this instance it's now recovered. Therefore if repairable then you should still have it covered under the same policy.

 

It is an annual policy therefore you could make numerous claims.

 

Suggest you go back to Elephant & insist they re-instate the policy. If not, complain to the ombudsman - details will be in your policy.

Can't recall who the actual insurance compamy is that underwrites elephant.com policies - could be UK Insurance Ltd which is owned by Direct Line & ultimately RBS.

 

It's actually Admiral who underwrite Elephant policies and they own the Elephant brand as well. :)

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