Why is my new address "unacceptable" to KGM?

[warriormonk]

Hi.

 

Am moving house. Rang up the broker One Quote to inform them and get a quote for a new policy.

 

Then like a bolt out of the blue - I was told my new address was "unacceptable" to the underwriters - KGM. I was rather unhappy to say the least. To add insult to injury I'm having to pay them £72 to cancel!! (£35 admin plus some interest no doubt)

 

As a result I now have to cancel my policy with them and look for another insurer (a brief search has found many insurers who are more than happy to cover this address)

 

I am completely flummoxed by the whole affair. This is the securest place I have ever lived. I am moving into a block of flats with secure, gated courtyard parking. OK a passer by can get into the car park...but you'd have to know the PIN code to make off with the car. In 2007 there was a "once in a lifetime" flooding event here...I'm wondering if this is the reason.

 

I was wondering if anyone else has experienced such a refusal and/or has any idea how...

 

I might uncover the reasons KGM think my new address is "unacceptable"

Whether I now have to declare they have declined my new address (and if so what the repurcussions might be)

Whether they can be challenged if their refusal has a negative impact on future quotes etc.

 

I'm now going to lie down in a darkened room

[afcwben]

sometimes some addresses are "No go" areas for car insurance. However, if they have cancelled the car insurance why are you paying a cancellation fee

[Mallrat83]

I work for an insurance broker, and get asked this all day.

 

Your insurance company declined the new address because the rate the new postcode as an unacceptable risk.

 

It may be a safer area, less crime, parked overnight securely etc.. but it isnt just the crime statistics they look at. They will see how many claims have been made in the area within a period of time, and the costs incurred with those claims. Its a standard thing with all insurance companies. Some like my postcode, some hate it!

 

You are having to pay a cancelation fee, because your insurance policy is a 12mth contract between u and the insurance company based upon the information you provided that the insurer found acceptable. Unfortunately by changing your address to one they wont quote on, its seen as you have broken the contract as such, and unfortunately you are liable for the cancellation fee. Although if u made a complaint to their complaints department, they may agree to waive the cancellation fee.

 

You dont need to disclose this to any other insurance company. Your policy has been cancelled, but not in a negative way by the insurer. Look at is as the insurer couldnt continue cover, and not it was cancelled. If you new insurer asks why the policy cancelled early, just say you moved address and your new address is a decline according to their underwriting criteria.

 

and finally, you can't challenge this at all. The insurance company can quote and decline on any address that they want. They are the one's taking the risk by insuring you. You could attempt to challenge this, but you would be wasting your time. It unfortunately wont change anything with your old insurer, and it won't affect your future premiums due to them declining to cover the new postcode

[Mallrat83]

I work for an insurance broker, and get asked this all day.

 

Your insurance company declined the new address because the rate the new postcode as an unacceptable risk.

 

It may be a safer area, less crime, parked overnight securely etc.. but it isnt just the crime statistics they look at. They will see how many claims have been made in the area within a period of time, and the costs incurred with those claims. Its a standard thing with all insurance companies. Some like my postcode, some hate it!

 

You are having to pay a cancelation fee, because your insurance policy is a 12mth contract between u and the insurance company based upon the information you provided that the insurer found acceptable. Unfortunately by changing your address to one they wont quote on, its seen as you have broken the contract as such, and unfortunately you are liable for the cancellation fee. Although if u made a complaint to their complaints department, they may agree to waive the cancellation fee.

 

You dont need to disclose this to any other insurance company. Your policy has been cancelled, but not in a negative way by the insurer. Look at is as the insurer couldnt continue cover, and not it was cancelled. If you new insurer asks why the policy cancelled early, just say you moved address and your new address is a decline according to their underwriting criteria.

 

and finally, you can't challenge this at all. The insurance company can quote and decline on any address that they want. They are the one's taking the risk by insuring you. You could attempt to challenge this, but you would be wasting your time. It unfortunately wont change anything with your old insurer, and it won't affect your future premiums due to them declining to cover the new postcode

[crem]

You are having to pay a cancelation fee, because your insurance policy is a 12mth contract between u and the insurance company based upon the information you provided that the insurer found acceptable. Unfortunately by changing your address to one they wont quote on, its seen as you have broken the contract as such, and unfortunately you are liable for the cancellation fee.

 

Well Mallrat, if you hadn't said you worked for an insurance company, I think we would have guessed anyway from that statement!!

 

Since when did moving house become a breach of contract? Most people would accept that there may be occasions when, by moving house, your insurance company do not wish to continue insuring you, however, I doubt many (if any) will accept that the insurance company can call that a "cancellation" of the policy by the customer and charge their punitive penalty charges.