Backdated Insurance Charge

Meldi | 21:29 Tue 25th Jan 2011 | Insurance

6 Answers

A member of my family had an SP30 in 2007 and this year has gone to another insurance
company for new insurance rather than stay with the same company ~ Bell, who I believe is part of Admiral (too expensive this year!). They want an additional £608 for the past 3 years backdated insurance... no accidents, claims or any other speeding offences since 2007 to date...... can they do this???

Insurance Excess

Void insurance clause?

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R1Geezer

sorry, you mean Bell found out that your familiy member had been paying the wrong premium since 2007 and are demanding their money? So your family member is going to move companies, is that correct? If so then yes Bell are within their rights.

Meldi

Question Author

the person concerned didnt realised they had to let the insurance company know about the SP30......renewals of the policy since that date have just continued, without getting in touch with the insurance company, or refilling of any new forms. This year the premium increased so much, it made him look around for another insurer.
When he contacted Bell to ask for a competitive insurance for this year, he was asked the relevant questions, and answered honestly. He was then informed of the backdated charges !!

-- answer removed --

R1Geezer

I see, then yes they are owed money and are within their rights.

Meldi

Question Author

Thank you both for your replies
Regards

bennhoughton

Unfortunately yes they are within their rights on this one, although £608 seems ludacris for an SP30, had that driver had other convictions in addition to this? However, as long as they can prove that is the underwriting premium they would charge then they are doing nothing wrong.

With regard to if you had a claim, it actually happens that any claim would not have been voided by the insurer, the only way they could do that is by proving that they would not have accepted your risk had they known about the SP30 - which blatantly they would have, they would have just charged you extra. So in the event of a claim, you would have been required to pay that extra amount before they were obliged to pay any money.

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