Car Insurance help - Equity star

[skyblue2027]

Hi,

 

i took at out cover for a motor in Jan 2009 and this lasted 5 weeks until i had to cancel and scrap the car for failure of MOT. In this time i was involved in a bump when we had black ice on the road. i hit a stationary vehicle at around 5mph - no damage done to either vehicle and the other driver was fine.

 

Then i get a letter a week later claiming for whiplash and all the rest of it.

i admitted fault due to adverse weather conditions but never heard anything back from Equity.

 

I do not know whether they paid out, i have no idea how much money i would have owed as i cancelled the plan after 5 weeks (i was due to pay monthly and paid the deposit money up front).

 

what should i do now as i had debt recovery chasibg me for a bill of £477. after CCA, they have referred back to Equity star?

 

any help would be appreciated.

[skyblue2027]

Hi,

 

i took at out cover for a motor in Jan 2009 and this lasted 5 weeks until i had to cancel and scrap the car for failure of MOT. In this time i was involved in a bump when we had black ice on the road. i hit a stationary vehicle at around 5mph - no damage done to either vehicle and the other driver was fine.

 

Then i get a letter a week later claiming for whiplash and all the rest of it.

i admitted fault due to adverse weather conditions but never heard anything back from Equity.

 

I do not know whether they paid out, i have no idea how much money i would have owed as i cancelled the plan after 5 weeks (i was due to pay monthly and paid the deposit money up front).

 

what should i do now as i had debt recovery chasibg me for a bill of £477. after CCA, they have referred back to Equity star?

 

any help would be appreciated.

[MARTIN3030]

I think this would be best answered by insurance bods-will move to that forum now.

[skyblue2027]

thanks Martin. hopefully one of you insurance guys can point me in the right direction.

[vusys1]

as you cancelled and the TP may have registered a claim the full premium would be due. If a claim has been reported you should have received all the relevant claim forms etc

[skyblue2027]

i phoned equity to advise of the claim then heard nothing since. all i got was a letter from DCA ARC chasing me for the money. i cannot remebr having any termination or default letters. how do i stand and what shall i do?im happy to pay whatever i owe but need to be sure i am paying correctly.

[buzby]

You would be due to pay them the full Annual Amount if the policy, you may have got a pro-rata discount to cancel for the MoT failure BUT this only happens when there is not a claim, as there was - then the entire annual amount of the policy is due, plus any excesses that apply. As you;ve not claimed for your vehicle, this will not add to the total.

 

I don't know why you have a DCA chasing you, unless you did not respond to your insurers correspondence requesting you pay the amount owed on your policy.

[MicheleFloyd]

Hello.

 

Sorry to hear this.

 

Now that the insurer has paid a claim, they are keeping the full premium. This is a very normal practice. Their costs to handle your claim probably exceed your annual premium anyway. Unfortunately, since you've cancelled they are not prepared to accommodate you to pay on credit.

 

Really, your beef is probably with the insurer instead of Equity. It's probable that Equity is on the hook for your entire annual premium and are therefore contacting you.

 

Still, my opinion is the insurer or broker is acting fairly, though I fully appreciate the inconvenience some apparent con artist has caused!

[skyblue2027]

thanks for your opinion. do i write to equity for the breakdown of costs?

 

i have no problem in paying what i owe, its the fact i have not received any correspondence to confirm they have paid out so i want to be absolutely sure before i make any payments.

[unclebulgaria67]

In regard to the administration problems, I think this may have been caused by the takeover of Equity branches by Swintons. The took them over, some time last year I believe.

 

Write back to the debt collection company asking for a breakdown of the costs. They have to provide this on request as this is your right. Under the OFT rules, you have to be supplied with full information on request. This is also your right under FSA rules which apply to Equity.

 

Send the letter to the DCA by recorded delivery.

 

Nb. It is in your interest to pay the premium. If you don't the Insurers could try to pursue you for the 3rd parties claims costs, which presumably will be a lot higher.

[skyblue2027]

Thanks for your reply unclebulgaria. the DCA have now passed back to equity due to my request for a CCA.

 

What letter would i send for a breakdown to Equity?

would that be the SAR?

 

I fully intend to pay what i owe but need confirmation of what i do and what they paid out.

 

thanks in advance.

[unclebulgaria67]

You just write the letter to Equity asking for a full breakdown of the outstanding amount due under policy xxxxxxxxx.

 

A very basic letter. But send by recorded, so you have proof that you requested the information. Might come in handy later, if this becomes long winded and goes to court.

[skyblue2027]

Thanks for your advise. will update once ive had a reply.