Car insurance voided

[Richielr]

Well it all started when i was in a non fault crash.

The insurance company was great got onto the phone and explained the situation even got me a courtesy car in the meanwhile.

After 2 weeks or waiting i rung the insurance company who advised me that there was some "technical faults" with my policy so i asked them what they were. they advised;

 

1. You are insured under your mum can we speak with her ( Gave e-mail to contact)
   
2. The V5 is in your brothers name (Said was given to mum as he could not afford the finance and my dad was his guardian which means if he defaults my dad has to pay)
   
3. Mum has 2 cars one petrol 1 diesel. One for pleasure one for bussiness comuting from and back to work) .
   
4. I was driving when i got crashed into.
   

After alot of e-mail between my mum and the insurance they said its gone to the underwriters. I said ok nothing to worry its genuine. They come back with the V5 situation. Now he is my brother who the car finance is in the name of. We did NOT buy the car from him he just left the rest of finance to me. Instead of paying board to my parents i pay the £57 a month for her insurance which i am on. Putting my board to a good cause.

Now they get back to me after a month saying from July 31st my insurance is void. I was wondering if i have any kind of point which i can put across. I have a solicitor on the job but i thought i would ask you. The car has £1800 of damage.

 

Thanks for reading.

[Darkangelsdelite]

It all comes down to something called the principal of financial interest.

I'll try and explain:

 

As the V5 is in your brothers name and he is paying the finance for the car, then he is the registered keeper and "owner" of the vehicle (its on finance but I'm assuming the agreement is in his name).

 

That being the case, your mum has no insurable interest in the vehicle as it doesn't belong to her, she's not the registered keeper and the finance agreement isn't in her name.

 

When she took the policy out, the insurer would have asked who the owner/keeper of the car is. If she's put down that it was her, then the policy is set up with incorrect information and the company are correct to void it.

If she has put in that it is your brother, then the insurance company were aware of this fact from day one and should never have set the policy up in the first place and they cant now void it.

 

You need to speak with them and check this out before you go any further.

If you have given incorrect info, there I don't see there's a lot you can do.

If the insurance company have made a cock up, then you have a case to fight.

 

Incidentally, even if the car wasn't in your brother name, this is still sounding dangerously close to a fronted risk case and could still have been voided anyway (i think that's why they wanted to speak to your mum and why they asked how many cars she had etc.)

 

Let us know how you get on..

 

 

DA

Edited May 18, 2008 by Darkangelsdelite

[Richielr]

The finance is under my dads name.

We cleared the fronting insurance thing because she actually does use this car more than me.

 

Thanks for your advice Darkangelsdelite

 

I will keep you updated