Insurance

Incorrect Quote

I recently received a very low quote for car insurance and based upon this took out a policy with the insurer. However about a week later I received a letter in the post saying that my policy was being cancelled due to the fact that the initial quote was incorrect it was too low. This was the insurers fault and they said so in the letter.

I was then told that I could either pay more money for the policy to continue or they would stop insuring me and I would have to look elsewhere.

My question is, surely once I have been quoted, paid for the insurance and received the documents both parties have entered a legally binding contract and that contract is to supply me with insurance at the agreed price. Can the insurer force me into paying more money?

motts2uk Sun 13/04/08 23:26

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Postdog
Mon 14/04/08
11:49

They made a mistake and admitted it. As a result they ended the "contract". They are under no obligation to insure as per the original quote.

themas
Mon 14/04/08
17:28

I don't know the answer, but I wouldn't be as dogmatic about it as the last poster.

On the face of it there is - as you say - a complete contract at the price you were quoted. I suggest you ask them what term in the contract gives them the right to end it. They must have a complaints procedure and an independent
Ombudsman type service (look in your policy for details) which you can follow.

But if you follow this route you must make absolutely certain that they are still insuring you while the complaint is dealt with. It may be that the best way would be to pay them the extra premium but make it clear in writing (recorded delivery - keep a copy) that you are doing so under protest, will be going through the complaints procedure & that they will have an obligation to repay you the extra if your complaint is upheld.

Cakeboy
Tue 15/04/08
20:39

They're offering you a service, they have the right to cancel it any time. It will be in their terms and conditions. As long as they refund you for the time you haven't yet paid for, there's very little comeback against them. This is even more relevant if you're paying monthly as you've not yet paid for the service they're taking away

Insurers will usually give you a window period of a couple of weeks to either pay them more or find other insurance - if the extra is competitive, then stay with them, if not then shop around some more

LAW_DROP-OUT
Thurs 17/04/08
22:54

a regular occurance this.....insurers bac tracking,,,, on mis quote.... motor cover

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