My car insurance was canceled with out giving a cause, what can I do? – That is cash

In the past few weeks our family has moved to a bigger house, in the same little village and just two minutes from our previous two bedroom apartment.

We've taken care of all of the usual things you do when moving, including forwarding mail, registering your electoral roll, renewing your driver's license, adjusting your insurance policies.

However, I have found that my insurer no longer offers insurance coverage. They said my policy would be canceled with no refund and four months before it expired.

It seems incredible to me that when I apply for new insurance I have to explain that my car insurance was canceled beforehand. What can I do?

A motorist's insurance was canceled after he moved – without giving a reason

Grace Gausden, This is Money, replies: There are many reasons why an insurer decides to cancel, refuse, or terminate your car insurance policy.

Common reasons are non-payment, non-disclosure, and fraud.

In this case we decided not to name the insurer.

However, you are still not sure why your policy was canceled because your husband's was changed with minimal effort.

You suspect that the crime rate is slightly higher in your new area, but it shouldn't be a noticeable change since you are only a few minutes away from your old property.

You are not only wondering how the insurance industry can punish those who find themselves in this situation through no fault of their own, but also fear that you will be punished for terminating a policy in the future.

As you say, this is a different situation than when a policy is terminated due to a major breach.

The driver must declare the termination of the insurance to each new insurer.

Unfortunately, this often serves as a warning sign and as a result, you may find that the premiums are much higher or that the mainstream insurance providers may not want to cover you at all.

This is Money has asked insurers what drivers can do in your situation because they feel it is unfair for you to suffer even though you did nothing wrong.

Many, without knowing the exact circumstances, said it was difficult to comment on, but offered advice, while others said what their insurance policy is for canceling premiums without warning.

A spokesperson for admiral said: 'All insurance companies will have their own underwriting criteria and will decide what risks they want to cover.

“If the customer's last insurer were to terminate their policy because they couldn't offer coverage for the new address, we wouldn't expect a customer to explain.

“If this was the case, the policy was terminated based on the underwriting conditions established by the insurance company.

"There are some cases where we would ask a customer to explain why they canceled their insurance, for example if they were canceled due to non-payment or a breach of insurance terms."

Each insurer has its own set of underwriting criteria that clients could leave uncovered

Each insurer has its own set of underwriting criteria that clients could leave uncovered

A spokesperson for Direct line replied: 'We review each policy individually and if a client's circumstances change we encourage them to contact us as soon as possible to ensure that their policy suits both their needs and their correct information is equivalent to.

& # 39; There are a number of valuation factors that are taken into account when offering a policy to a customer, which is why it is important that a customer informs us of any changes as soon as they become aware of them.

“It is important that the customer inquires with their insurer why the policy was canceled and whether this affects future offers. However, should a customer's policy be canceled in some cases, this must be notified. & # 39;

In the meantime, Compare the market said that you must disclose the cancellation of the insurance policy on the related issue in most insurance question sets.

It added that many insurers are unlikely to make an offer, and those who do could ask a higher price.

If you are of the opinion that your car insurance has been wrongly or wrongly terminated, you can complain to the insurer – or at least determine a definitive reason for termination in advance.

Ryan Fulthorpe, of GoCompare Auto Insurance, said, “Insurers consider many factors when deciding whether to insure a driver, and address is an important part of that.

“Some insurers may not want to cover certain zip codes at all, and then some drivers may run into problems.

“Legally, you need to update a change of address with the DVLA or you could be fined £ 1,000 from Insurers and DVLA.

“However, this could mean an increase or decrease in the cost of your car insurance or, in this case, a rejection of the policy.

“Different insurers view the risk factors of car insurance differently, so it is important to look for your car insurance to get the best policy and the best price – even if you are moving.

"When applying for insurance, drivers must always use reasonable care to disclose all relevant information, otherwise this could result in a claim being denied or the policy being canceled."

A spokesperson for Aviva added: "When calculating car insurance premiums, we take into account a variety of risk factors including the customer's driving experience, the use of the vehicle and the address where the vehicle is kept or usually parked when not in use – e.g. a garage, on a driveway or on the street outside the property.

“The last point enables us to assess the likelihood of incidents such as theft or willful damage when the vehicle is not in use.

“When a customer moves, the level of risk associated with the vehicle can change.

& # 39; This can mean that the vehicle premium falls or rises in line with this changed risk or, in very few cases, we can no longer cover it at a new address.

"In this scenario, we would continue to be insured until the move date, but inform the customer that we will no longer be able to insure the vehicle after the move."

Where drivers park their car and what area they live in may depend on whether they are insured

Where drivers park their car and what area they live in may depend on whether they are insured

A spokesperson for Hastings Direct said: “Attitudes to what constitutes a policy that has been terminated for explanatory purposes will differ from one insurance provider to another.

& # 39; In this particular example, Hastings Direct would not consider the cancellation of a customer's previous insurance due to the insurer's lack of coverage for a new address as a declarable reason for cancellation.

& # 39; In general, insurers are more concerned about situations where customers have canceled insurance due to fraud or failure to comply with insurance terms.

"That is why an individual assessment so that you can take into account the circumstances behind the termination is crucial for an informed and fair decision by an insurance provider as to whether it offers insurance cover."

Grace Gausden, This is Money, adds: Drivers who believe their policy has been wrongly canceled can complain to their insurer and explain the reasons.

If you cannot find a satisfactory solution, you can always take your case to the financial ombudsman who will review the evidence and deliver a judgment.

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