Invalid contract on insurance?

[VP1]

I have a dispute with Budget Insurance although this could apply to most I imagine.

 

In a nut shell I wanted to insure a van in addition to my prime vehicle.

 

I work through a comparison website answering all questions honestly including the question related to no claims discount available

 

Based on my answers I receive many quotes and from these I select the one I prefer.

 

I pay a deposit on a Master Card and the insurance goes live.

 

I receive a request for proof of the 10years + no claims which I comply with. I am only now informed because this no claims is still live and attached to my prime vehicle it can not be applied against the second vehicle (van)

 

Because they are now applying 0% no claims the cost of the insurance rockets.

 

I explain that I (honestly) was not aware that no claims discount could not be applied to a second vehicle and the web site data I entered, that formed the basis for the insurance contract, never indicated nor informed me of this.

 

I inform them I am not prepared to pay this higher cost for the insurance as I can recieve insurance cheaper from several companies even with the 0% no claims discount. I state the original contract for the insurance was based on the information they requested and I supplied.

 

They state they will be taking the higher amount based on 0% NCD so I inform them the contract is not valid and I do not want this payment to be taken.

 

I tell them the policy should be cancelled and I am informed they will indeed cancel and take a cancellation fee plus a % of the original amount of the policy.

 

 

Q. Am I correct in stating that this contract is void?

 

It seems any person not aware the no claims discount earnt can not be applied to more than one vehicle and wishing to insure more than one vehicle using the online quotation forms faces this issue. it seems you can agree to a quotation then only after this point be informed the price you agreed is no longer valid and they want considerably more. if you do not agree then you must may a fee to cancel the contract!

 

Just as a side I never signed and returned the consumer credit agreement sent soon after the policy went live. The policy was in effect for approx 3 to 4 weeks from payment of the deposit to date cancelled.

 

Any advice would be welcome. I have screen shots of the original online application form with my response entered

[raydetinu]

correct under DSR you can cancel ( in writing or email ) up to 7 days after when the policy is to start, most give you 14 days to cancel these days; 7 days is minimum based on the Distance selling regulations. if within this time frame they have to refund it all, outside they may cancel but have to pay admin fee.

[queensclose]

I did the same myself. We got round by then getting the best quote and they matched it

[VP1]

The policy was not cancelled under the distant seller regs. A dispute resulted from the original price agreed being based upon the data they requested only for that price to change after the event when further details came forth i.e. you cannot apply NCD to more than one vehicle

[VP1]

I did the same myself. We got round by then getting the best quote and they matched it

 

 

I asked that question and they refused to match but insisted I pay the higher price they now wanted for the policy

Edited May 17, 2011 by VP1
spelling

[raydetinu]

they are correct you can only have the NCB on one car, however most will offer an introductory discount for the 2nd car, normally 30%.

Anyway my point about DSR is as soon as you new the cost why did you not just cancel, you do not need a reason under the regs.

[VP1]

Here is the time line:

 

18 April email received confirming insurance

 

Thank you for insuring your Volkswagen Lt35 with Budget - you have joined over a million satisfied and happy customers.

Your policy documents, including your certificate of insurance, are available to you at anytime through our online Self-Service Centre at

Thank you for insuring your van with Budget.

The Budget van insurance team

 

29 April - letter dated asking for no claims (also stating they asked for proof at start but I have no record of this in any correspondance)

This letter received by me on the 04 May

 

Away from 05 May until Sunday 08 May

 

Tried to telephone Budget 09 May after no reply emailed:

 

With reference to your request for proof of no claims discount. I have tried ringing several times but have been unable to reach an advisor so hope this information will enable you to satisfy the requirements.

 

The vehicle in question *** **** has not been used for approx 3 years but when it was last insured it was with yourselfs. For the last 3 years or so I have continued the no claims on vehicle **** *** which I have insured with the AA.

 

Can you get back to me and let me know if this information enables you to obtain the details you need. If it helps I give full permission for you to contact the AA and for them to release insurance detail information

 

 

Responce received from budget 11 May informing me NCD can not be applied against this policy. This is the first time I became aware and this occured some 24 days after policy first entered into and thus became the first point at which it could be cancelled.

 

Thank you for your email,

unfortunately we can not give you any ncd allowance because the proof is out of date and we can not use your aa policy as it is still active sorry to inform you of this.

kind regards

ncd team

Email / telephone between budget and myself to try and clarify resulted in policy cancelled 16 May.

[Jeepstar]

I didn't think DSR's applied to non physical things such as insurances. Sorry OP but I'd of thought most people know you cant carry your NCB on more than 1 policy. I'd say they have the right to charge a cancellation fee as you gave the incorrect information. Ignorance isn't considered an excuse in terms of law.

 

I think you probably knew this too when you were using NCB from a policy of 3 years ago.

[VP1]

Yes I see your point but where as ignornace can not be used as a defence in law a contract entered into must be based upon information supplied by both parties and I have not supplied any false information to the insurance company

[Jeepstar]

a contract entered into must be based upon information supplied by both parties and I have not supplied any false information to the insurance compan

In their eyes you have, they asked you if you had NCB, You said yes. It turned out you hadn't when asked for proof.

[VP1]

I'll post the screen shots when I have 20 posts and you will see the point.

 

The questions ask if you have any no claims built up on this or any other vehicle and are given a yes / no option. I answered yes then went to the next stage. They do not say if you have you can only use it on one vehicle.

 

Thus the contract was based upon the questions they asked and I answered honestly. Only after the event when they required proff of the no claims I have did I discover it could not be applied and this then increased the cost.

[Jeepstar]

Just had a look at budgets website. Next to the drop box for the length of NCB is a '?' press that and it tells you what requirements there are to use your NCB.

 

Sorry OP but they are correct.

[queensclose]

I see your point. In my case I did it over the phone and was asked that question do I have any no claims bonus and truthfully answered yes. They come back to me two days later because it was on the data base I was still insured on another car. But they did help me. The best price was as if I had 3yrs ncb. So they reduced the ncb to 3 ys which I was happy with

 

It would be easier if the question was. Do you have any no claims bonus to transfer.

[raydetinu]

did they ask ay the time you did it on line if you owned another vehicle in your name and who was it insured with. i.e.is this a second vehicle?

Jeep; DSR applies to goods and services including insurance.

[VP1]

jeepstar I took out the policy via compare the market and you are right there is indeed a '?' which if you click expalins about NCD. I never clicked on this because the question asked: Any no claims discount I answered based upon the 10 years I had and yes I made an assumption that I knew what NCD was and how it worked.

 

I assumed I knew and I was wrong which will indeed be an expensive lesson learnt!

 

Thank You for your time with this

[queensclose]

No I wasn't asked about another car.

[VP1]

Ray I did it all using compare the market.

[VP1]

All the questions are on the vehicle details section of the site. It is the '?' help sections on that page that contain the information about the use of the NCD.

[VP1]

bump to enable links to be posted

[VP1]

http://ultrarun.typepad.com/.a/6a00e008d5640088340154325e169b970c-pi

 

http://ultrarun.typepad.com/.a/6a00e008d5640088340154325e16a0970c-pi

 

Screen shot

Edited May 17, 2011 by VP1
error in link

[raydetinu]

trouble with using compare sites is that they are too general just give you a basic comparison, do not give specific terms and conditions for each co.etc

So always best to check with actual co website before committing.

I tried this with my jap import, cheapest was M & S, but when checked with them they said sorry we dont insure imports.

In post 13 you said you did it over the phone? where originally and later did it on line?

[Jeepstar]

Looking through the DSR regulations. You can only use your right to cancel if the insurance hasn't actually started. If it has you then have to adhere to the insurers cancellation policy.

[VP1]

Follow up question if I may.

 

What is the position with regards cancellation fees and charges? General or specific advice relating to Budget most welcome. From what i can see from other members of the forum they are not the best of insurance brokers!

[VP1]

One other question: They are stating they asked for a signed copy of the credit agreement to be returned but I have no record of any such document being received. Any implications?

 

Also the terms and conditions on the quote form only makes mention of a £25.00 cancellation fee if cancelled after 14 days and nothing else. How can they then charge 100's of pounds to cancel/

Edited May 18, 2011 by VP1
additional information

[raydetinu]

VP1; In your first post you said you returned credit form unsigned! so not in affect then.

Dont forget they have your Card details from your deposit! should not use it but never know; suggest you inform your bank not to accept any transaction from them.

I think you will have to be resigned to paying the cancellation charges, but they should be reasonable.

However will be based on the higher 0% NCB premium.

You will have to go through terms and conditions covering cancellations.

Most apply a short term rate of 30-35% of the yerarly total less your deposit.