Getting motor insurance policy put on ice temporarily

makeorbrake

Helped a friend sell their car today. The car they plan to replace with - won't be available for up to 10 days.

She rang her insurance company to have her insurance policy suspended. Firstly, the only manner of contacting them was via online chat! They wouldn't give a number until I threatened them with the insurance ombudsman.



Next up...


They say they can't make the policy suspension effective until she returns the insurance disk and cert of insurance - as in the originals!

How can this be right???

Went round the houses - kept maintaining that this simply couldn't be anything other than sharp practice. That the car had been sold and unless they suspended the insurance policy, then my friend was still liable (under their policy)...which they confirmed to be the case when pressed.

They stated ' but we didn't know you were selling your car!' So what? An insurance company expects advance notice beforehand - or for the buyer to wait for the best part of a week before the car can be handed over to them?

Asked for a supervisor to call her back immediately - and was told that wasn't their policy. Later in the conversation, was told that they had a callback facility but may not get to call customer back for up to 48 hours.

Does anyone have any experience in this area ....and can cast any light on it - as it sounds plain wrong to me. Sure - they need the original documents back - no problem - but not putting a stop on the insurance in the interim is just plain wrong.

Sue Pa Key Pa

You won't get any credit for a suspension of cover under 30 days. It is industry standard that all documents be returned before cover is suspended as a) they could be produced to Gardai as proof of cover in place on the vehicle and b) most policyholders get driving of other cars, which could still be used if the papers were held on to.

YOU had no right threatening anyone with the Ombudsman, it was nothing to do with you and you had little knowledge of what was going on. I'm surprised they gave you any courtesy as they should only speak to the policyholder

makeorbrake

Sue Pa Key Pa wrote: »

YOU had no right threatening anyone with the Ombudsman, it was nothing to do with you and you had little knowledge of what was going on. I'm surprised they gave you any courtesy as they should only speak to the policyholder

Mind your own manners!

You may have explained it away - but as a consumer, I don't find that in any way satisfactory. Effectively, they're getting paid for nothing. You think that's alright -- fine. I most certainly don't.

As regards being courteous, I have a right as a consumer to contact insurance ombudsman or anyone else for that matter if I so choose. It is NOT rational that there is a car out there tonight - that's dual insured (or for all I know, insured only by my friend) - but being driven by the new owner.

Furthermore, you think telling a customer that there's no phone number to contact them on is okay?
Lastly, you think it would have been reasonable to inform a customer that they would not be offering any credit for a suspension of cover under 30 days?

I guess not, right?

Liam McPoyle

makeorbrake wrote: »

Mind your own manners!

You may have explained it away - but as a consumer, I don't find that in any way satisfactory. Effectively, they're getting paid for nothing. You think that's alright -- fine. I most certainly don't.

As regards being courteous, I have a right as a consumer to contact insurance ombudsman or anyone else for that matter if I so choose. It is NOT rational that there is a car out there tonight - that's dual insured (or for all I know, insured only by my friend) - but being driven by the new owner.

Furthermore, you think telling a customer that there's no phone number to contact them on is okay?
Lastly, you think it would have been reasonable to inform a customer that they would not be offering any credit for a suspension of cover under 30 days?

I guess not, right?

The phone number thing is a bit strange and they should have a number for customers to call.

In relation to the rebate for being off the road, it's industry standard that if the insurance is suspended for less than 30 days then they do not give a refund. If she checks her policy documents then I'm sure it says it in there.

makeorbrake

Saul T Nutzz wrote: »

In relation to the rebate for being off the road, it's industry standard that if the insurance is suspended for less than 30 days then they do not give a refund. If she checks her policy documents then I'm sure it says it in there.

I've had her read through the policy just now and she says that theres no reference whatsoever to policy suspension. Policy cancellation is covered but not policy suspension.

Where does that leave her?

mgbgt1978

Sue Pa Key Pa wrote: »

You won't get any credit for a suspension of cover under 30 days. It is industry standard that all documents be returned before cover is suspended as a) they could be produced to Gardai as proof of cover in place on the vehicle and b) most policyholders get driving of other cars, which could still be used if the papers were held on to.

YOU had no right threatening anyone with the Ombudsman, it was nothing to do with you and you had little knowledge of what was going on. I'm surprised they gave you any courtesy as they should only speak to the policyholder

Anybody is entitled to deal with them ...once the policy holder has given their consent to allow a named third party communicate on their behalf. The policy holder could be deaf in this case for instance, which could make phone conversations impossible.

Liam McPoyle

makeorbrake wrote: »

I've had her read through the policy just now and she says that theres no reference whatsoever to policy suspension. Policy cancellation is covered but not policy suspension.

Where does that leave her?

Same rules apply. She has to return the cert and disc before they can activate the suspension.

If the car will only be off the road in the short term she will not be entitled to any refund.

She doesn't need to worry about dual insurance, the company will have a record of the conversation and will know she is no longer the owner so even if an incident was to occur with the new owner it is on record that its no longer her car.

makeorbrake

Saul T Nutzz wrote: »

She doesn't need to worry about dual insurance, the company will have a record of the conversation and will know she is no longer the owner so even if an incident was to occur with the new owner it is on record that its no longer her car.

I asked them explicitly via their webchat and they confirmed that there would be a case of dual liability - that both policies (assuming the other party had or has activated his own insurance policy) would apply in the event of an RTA.


Was she wrong to suggest this given that I had confirmed that the car had been sold?

Liam McPoyle

makeorbrake wrote: »

I asked them explicitly via their webchat and they confirmed that there would be a case of dual liability - that both policies (assuming the other party had or has activated his own insurance policy) would apply in the event of an RTA.


Was she wrong to suggest this given that I had confirmed that the car had been sold?

Obviously only they can confirm that but if they are aware that ownership has been transferred then if a claim occurs they will wash their hands of it.