Zenith Cancelled My Policy And Then Claimed I Owed Them Outstanding Amount inc fees

[mystic_bertie]

Hi Guys

 

I had a couple of car insurance claims around Oct last year, nothing too drastic but they were both my fault, In the end they wrote off my Range Rover.

 

I got a quote for a replacement car and it was fine for me, i then went and bought the car,

i then changed my insurance over no problem,

 

then a few days later they told me they were cancelling my policy as the updated claim information meant they could no longer cover me.

They wanted me to pay the outstanding amount for the rest of the policy year plus fees.

This was annoying as they already gave me the all clear to buy another car and then they do this to me. 

 

I ignored any requests for the money and they have passed it onto a collection company. C.A.R.S have offered me to pay a bit less.

What the best thing to do guys as the insurance company really messed me around. 

 

Rob

 

 

SETTLEMENT OFFER

Further to discussions with our Client, we have been given the authority to offer a substantial discount to assist you with clearing the outstanding balance on your above debt.

Pay £230.62 within the next 14 days to settle your account in full (25% discount)

Or alternatively

Pay £245.99 in three equal monthly instalments for 3 months to settle your account in full (20% discount)

Once this debt is settled, we will ensure that your file is fully updated.

Act now to take up one of the offers above by calling our settlement hotline on 0333 136 8282 today or go to www.carsuk.org to chat to us online.

 

You must contact us before paying a settlement amount so we may adjust the outstanding balance accordingly.

 

Yours sincerely,

 

 

[Ethel Street]

I am confused.

 

You had two claims October 2022 the second of which resulted in your car being a write off. Who was the insurer at that time?

 

Normal practice after a write off is that the policy is automatically cancelled with no return premium even though the write off was mid term. Is that what happened?

 

Then you bought a new car. Which insurer quoted you to insure that car? Did you fully disclose the two accidents? If so what is the "updated claims information" that has now made them want cancel.it?

 

Which insurer is trying to recover from you the outstanding amount for the rest of the year? The insurer of the car written off last October or the insurer of your new car?

[dx100uk]

CARS are a dca

a dca are not bailiffs and have zero legal powers on any debt.

 

dx

[mystic_bertie]

Dx -  thanks for your reply once again. 

 

 

Thanks for your reply Ethel. 

 

Zenith was the insurer at the time and they are part of the Markerstudy group. They also quoted me for my next car and that is why i went ahead and bought it. They must have quoted me based on the 1 claim, then after the second claim was put on my file it has meant they wont insure me any longer.

 

Any car insurance claims i have had, the car being written off does not cancel or close the policy. The policy was mid term, i was paying monthly and then they asked me to pay the rest of the term up front as they were about to cancel it also.

 

Zenith is trying to recover this money but the have passed it onto this debt collection agency called CARS.

[dx100uk]

pers id walk and pay no-one anything now.

 

never seen a failed ins policy etc goto court stuff all they can do.  walk!

[unclebulgaria67]

If the policy was being paid monthly under a Consumer Credit Agreement (CCA), this may mean that this does appear on your credit record.

 

So if you are concerned about credit record being clean, then I would suggest you do a credit record check to see of the Insurance is shown on your record.

 

At the time you register any change under an Insurance policy, the Insurers/broker will run a new quote and in this case, the Insurers were no longer able to offer cover on the new car, so cancelled the policy.  So in this situation any remaining premium owed for the year will become due.  But it should not be noted as an outstanding debt affecting credit record until the CCA period has expired (usually 12 months after taking out the policy).

 

I would suggest that you negotiate an affordable arrangement to pay the amount owed to the Insurance company.

[mystic_bertie]

Dx - many thanks for your reply annd the very useful information.

 

 

 

Uncle Bulgaria - many thanks for your reply and the information.  

 

I do want to keep my credit record clean if i can. Below is the information on Credit Karma website. Does it look like the outstanding amount does not need to be paid now?

 

 

BFSL Motor & Home Insurance

Closed

£0   Current balance

 

OVERVIEW

Account type Motor Insurance

Status Paid and Closed

Account number  **************

Last updated   01 Feb 2023

Start date   17 Jun 2022

End date   03 Feb 2023

 

 

[dx100uk]

8 hours ago, mystic_bertie said:

They wanted me to pay the outstanding amount for the rest of the policy year plus fees.

well they wouldn't be the ones to decide that the finance co would? so cant be consumer credit financed insurance like close brothers etc.

 

which looks true as:

its not financed so unless the debt has been sold on (which would show the same result mind).

 

you look ok

 

walk!

 

dx

 

[unclebulgaria67]

The Insurance company should have issued letter stating amount left to pay up policy for the year. So you just need to pay the remainder of the premium you agreed to when you took out the policy. And you should be allowed to pay it over the number of months that would have been left, had the policy not been cancelled.

[mystic_bertie]

Dx - many thanks for your reply. The bank transactions were actually Zenith Insurance they must be one of the few companies who dont use the close brothers.

 

uncle bulgaria - many thanks for your reply. I understand what your saying but they just sent me a letter to pay the outsstanding amount but i ignored it. Now its been passed onto this mob CARS but its not showing up on my credit record.

 

[Manxman in exile]

If you made a claim in any particular policy year and you pay your premiums monthly, then when the claim is paid out you will become contractually liable to pay the unpaid balance of the annual premium.

 

You entered into a contractual arrangement for them to provide you with insurance cover in return for you paying them an annual premium.  They've kept their side of the bargain by paying out on both your claims, now you need to keep your side of that bargain by paying the outstanding premium.  Whether you think they've messed you about or not is neither here nor there.

 

It's quite likely they won't sue you, but they are almost certainly legally entitled to do so and they would almost certainly win.

 

I'm all for enforcing consumer rights but sometimes consumers need to be reminded they have responsibilities too.  Especially if what they do has the potential effect of pushing up premiums for others.