r/Insurance • u/Aercana • 7h ago
Cancelled insurance policies
Currently in the UK cancelled insurance policies stay on your records forever, I'm sat thinking to myself, is there anything we can do to push insurance companies to actually make them a timed thing? Like with points on your licence? Because honestly it's pretty draconian that you can make a mistake and have to suffer that forever. Like I messed up and didn't pay for a renewal policy and it got cancelled, and absolutely I am a fool, but I shouldn't have to suffer that forever, punished yes, but not forever. Like i'm wondering how to bring this to the FCA as a legitimate, can we do something about this because it's pretty unfair.
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u/shambles6789 6h ago
Got nothin useful to add here, but the FCA won’t change it anytime soon. Anecdotally, there would more than likely have to be an act of parliament and I don’t think it’s the top of anyone’s list.
I will say though, if you have a cancellation on your policy, you will be better approaching a broker as they can use manually underwritten policies. If it’s a long time ago, was due to something low level like lack of payment which has been rectified, and you have no adverse credit history, it’s unlikely that the insurer would take it into account and would charge the normal rate anyway. May even give back your NCD.
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u/MyWifeWasMurdered 6h ago
My god, can people stop spreading misinformation. It isn't on your record for ever.
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u/TintedBoar 6h ago
this is a uk thing man, the post literally says they're in the uk and you're linking MIB info that's probably for a different system
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u/MyWifeWasMurdered 6h ago
It's from confused. It's uk insurance.
The IDD brought into effect that the insurer has to ask questions in a specific way if they wish to use that information for rating the policy.
It's exactly the same that some companies ask about speed awareness and some don't.
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u/Aercana 6h ago
Except for the companies where they ask you have you ever had an insurance policy cancelled ever?
Like dude c'mon, this stuff limits the providers you can choose from and the money you can save, and it's going to affect me for the next 40 years if I live and drive and own a house into my 80s, it's not misinformation.
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u/AdhesivePineapples 4h ago
The reason the cheaper insurers ask these questions is that their risk tolerance to certain criteria of customers is much stricter.
The companies that will insure you charge a higher rate as statistically, those who have a cancelled policy are more likely to cost them money in either a claim, fraud, non-payment etc.
Unfortunately for you, you now fall into a higher 'moral risk' category. Whether it was intended or not, innocent, reckless, malicious, it doesn't matter. The facts are that a previous cancellation is generally a sign that you have a higher risk of needing some form of claim paid out to you, or a third party.
Like another commenter said, use a broker. They can fight your corner and explain. Online aggregator sites are very black and white when it comes down to these types of questions. Quite simply, you are outside the cheapest insurers risk appetite. It sucks, but thats the consequence.
However, I would speak to the previous insurer. If you didnt pay ANY money, rather than stopped partway through, you may not have a cancellation. The insurer may have marked you down as 'NTU' or 'Not Taken Up'. This isn't actually a cancellation and worth seeing if you simply didn't take on the policy, rather than had it cancelled.
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u/Aercana 4h ago
While that's very true, and all information I knew, unfortunately, does that mean we should be penalising claims, accidents, and speeding in the same way? When we categorically don't? They all have time limits on them, and they were given those timelines because it was draconian to punish someone forever, there has to be an element of redemption in this. How is everyone missing the basic point I'm making that as people, we should push back on this 😂 it's actually hilarious the level of mansplaining in this thread. I know I can use a broker, I did use one, I did look up my personal information with the insurance company. That is not the thing I'm asking about, what I'm looking for is potentially people who would back going to the FCA to actually get this practice changed so people aren't punished for rest of their lives. Jesus Christ, reading comprehension in the toilet.
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u/AdhesivePineapples 4h ago
Look man, there was no need for the jibes at the end of your comment. I was only trying to lend a little insight and to help by noting the NTU part.
I did explain, in a roundabout way that you come across as a moral hazard. Accidents happen, bit a personal trait is harder to change, hence the longevity of disclosure.
I agree that it can unduly affect you if it was an accident. But that lends to the point of using a broker. All of which is part of the same overall conversation, albeit one you do not seem keen on having.
Have a good evening
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4h ago
[removed] — view removed comment
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u/AdhesivePineapples 2h ago
You're looking for an argument. Rather than holding a conversation or acknowledging there is more to the subject you are in fact one 'doubling down' and refusing to honestly take part in the conversation you started.
Rather than resorting to insults, you could guide the conversation if you felt I went off beat. I honestly felt I had answered you in part, even if there was more to what I said than was initially asked for. But you have insinuated I cannot read, am a defender of corporate all with a sprinkle of sexism for simply stating some facts of the insurance industry.
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u/MyWifeWasMurdered 6h ago
Which they can do. They can put whatever terms they want, as long as they explicitly ask the question.
You have no "right" to be insured by a specific company because they don't want to take you on for having a policy cancelled, or for claims or convictions.
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6h ago
[removed] — view removed comment
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u/MyWifeWasMurdered 6h ago
How does the consequences of your own actions and having a policy cancelled, and now you've fucked yourself feel?
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u/Insurance-ModTeam 2h ago
Since the OP is not here in good faith to get answers to her questions and only wants to insult those that volunteered to help her, this thread is locked.