Car insurance refusal

[todd390]

A question for a friend who was a private cab driver with local firm.

He had an accident 12 months ago when a motor cycle hit the side of his vehicle.

No serious injuries to him of motor cyclist.

Taxi driver received 3 points and £100 fine. That put 6 points on his license.

He packed private hire in last week due to lack of earnings with company.

He was offered a collar on hackney carriage, but insurance company refused to insure him as they say the accident cost them £22,000.00

3 points are due to come off his license in February.

Question is "Are they within their rights to refuse insurance?"

He hasn't lapsed on his payements as it was a company block payment. 6 points on a license isn't the crime of the century (3 for speeding).

I have told him to complain in writing and tell them if it isn't resolved to his satisfaction write to the Insurance Ombudsman.

Basically they are stopping him from working, are they allowed to treat anyone this way?

After all why do we pay insurance?

[borisbeaver]

An insurance company is well in its rights to refuse insurance to your friend.

[todd390]

So basically they could refuse anyone insurance?

Its a bit like my father told me years ago they are always only too willing to take your money off you but when it comes to paying out they dont want to part with the cash.

Thanks for your reply.

[borisbeaver]

yep - you've got it in one!