Car insurance cancelled by insurance company

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Car Insurance Cancelled by Insurance Provider

Lately, Insurance companies, Car Insurance companies that is, seem to have been doing some very strange things, and it’s caused problems for their policy holders.

They’ve been cancelling insurance policies for no reason.
In actual fact, they have had their reasons, I’ll explain.

For arguments sake, they may want proof of no claim bonus, and if you don’t send it in within a couple of months, they will write you again and they will say, “If you don’t let us have the proof of bonus, we either want the extra premium, or we’re going to cancel the policy”.

But those letters go astray or don’t get read.

They then don’t write again, cancel the policy, the policy holder doesn’t know and he’s driving around in gay abandon, only to get pulled up by the police, have the car impounded, because the police say the car is not insured.

And in circumstances like that, the car isn’t insured.

OK, there’s a complaint to make to the insurance company, and there’s a complaint to make to the financial Ombudsman Service, about the insurance company cancelling the policy without making adequate provision to inform the policy holder that it was being cancelled.

But nonetheless the fact remains that the person’s been driving around with no insurance.

So what can you do if you car insurance is cancelled?

Well driving with no insurance is what’s known in the legal profession as an offence of strict liability.

It doesn’t matter why you did it, the fact remains you were driving around with no insurance.

You have no defence.

What you CAN do is put forward some mitigation, and if you can prove to the satisfaction of the court, it will usually be magistrates, if you can prove to the satisfaction of the court that there is no way you could have known that the vehicle insurance had been cancelled, you could escape penalty.

Remember, that if you have an accident in circumstances like that, you could well end up with an argument with the insurance company.

So that’s better to be avoided.

Expert Answers, Legal advice in a click.

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