The Cost Of Forgetting To Cancel Motor Insurance

[the gardener]

Why do you suppose that had happened?

The story makes sense if and only if the paperwork to transfer legal ownership hasn't been sent to DVLA, so he's still the registered owner/keeper.

Exactly.

What if he didn't actually sell it but lent it to his mate who totalled it? Realising his mistake lending it to an uninsured driver he pretends he had sold the bike to him the previous week and fills in the documents to say so. He might just get away with it he thinks, he's even able to drop the documents in the post. The problem is he can't travel back in time to cancel his policy and doing so shortly after his friend has wrecked the bike and died in the crash would look a tad suspicious so he has to go with pretending to forget to cancel it.

[Bloo Loo]

Exactly.

What if he didn't actually sell it but lent it to his mate who totalled it? Realising his mistake lending it to an uninsured driver he pretends he had sold the bike to him the previous week and fills in the documents to say so. He might just get away with it he thinks, he's even able to drop the documents in the post. The problem is he can't travel back in time to cancel his policy and doing so shortly after his friend has wrecked the bike and died in the crash would look a tad suspicious so he has to go with pretending to forget to cancel it.

Maybe he had a receipt.

The DVLA isnt about ownership.

[rxe]

The frightening thing is that the whole thing is a circus...slightly damaged panels completely replaced, days of car hire at £56 per day, legal mentors to be paid for. God knows what a small prang is going to cost this chap's insurance just because he was honest enough to own up.

Very true - my wife had a minor altercation with an Audi, about one inch of paint scraped from his bumper, same for her. Her fault, and she just said to the guy - get it fixed, if the price is sensible, then I'll just pay, otherwise we'll do the insurance hell. He took it to an Audi garage - and a bill of £3000+ was proposed. New bumper, new parking sensors, rear lights, everything. Thankfully he was a decent bloke and took it to another garage who were genuinely bemused by the requirement to replace the whole back end of the car and did it for £300.

[JustYield]

Exactly.

What if he didn't actually sell it but lent it to his mate who totalled it? Realising his mistake lending it to an uninsured driver he pretends he had sold the bike to him the previous week and fills in the documents to say so. He might just get away with it he thinks, he's even able to drop the documents in the post. The problem is he can't travel back in time to cancel his policy and doing so shortly after his friend has wrecked the bike and died in the crash would look a tad suspicious so he has to go with pretending to forget to cancel it.

This reading of the situation is worth consideration, and I'm now worried that I'm too trusting of the bloke in question.

Perhaps insurance companies are the way they are for reasons.

[Riedquat]

Perhaps insurance companies are the way they are for reasons.

They'll certainly have to deal with large numbers of people trying it on. Then problems happen when they treat everyone as if they're trying it on. The police have the same problem. They have to deal with genuine scum so they treat everyone like that, which entirely justifiably results in a lot more people viewing them as no better than the scum.

[Boomer Baby]

If the chap being pursued by his insurance company is genuine then it’s unfortunate for him but the position as I understand it is actually quite straightforward.

1. Accident involves an uninsured driver.

2. Motor Insurers’ Bureau (MIB) become involved as they – via a levy on all motor insurers – are the means by which claims against uninsured drivers are settled.

3. MIB check their database to see whether anyone does hold an insurance on the motorbike in question.

4. Finding there is a company holding insurance on the bike, MIB pass on the claim to them.

5. If the uninsured driver had lived and had any assets then he would have been pursued for the cost of the claim as he was not insured to ride the bike.

6. As that avenue is not open to them, the insurance company pursue the policyholder as (i) the uninsured driver was not mentioned on the policy, (ii) there has been no report of the bike being stolen and (iii) the policyholder has not asked for any of the terms of the insurance to be varied or cancelled.

If the bike was being sold to raise some money and the policyholder does not have any assets then it’s likely the insurance company will not pursue him too vigorously although the loss will count against him if and when he applies for insurance in the future.

Whether he owned it or not is immaterial. Indeed, the insurance company could claim it actually strengthens their case that he was no longer the registered keeper because by not advising them of this he was in breach of the original agreement in which he confirmed he was the registered keeper.

As to how you can cancel a policy on a Sunday ….. if he emailed them and could show when this was sent or even called them within a few hours of their offices re-opening then he would be in a strong position but as it is, there doesn’t seem to be any attempt to advise the insurer.

[Bloo Loo]

If the chap being pursued by his insurance company is genuine then it’s unfortunate for him but the position as I understand it is actually quite straightforward.

1. Accident involves an uninsured driver.

2. Motor Insurers’ Bureau (MIB) become involved as they – via a levy on all motor insurers – are the means by which claims against uninsured drivers are settled.

3. MIB check their database to see whether anyone does hold an insurance on the motorbike in question.

4. Finding there is a company holding insurance on the bike, MIB pass on the claim to them.

5. If the uninsured driver had lived and had any assets then he would have been pursued for the cost of the claim as he was not insured to ride the bike.

6. As that avenue is not open to them, the insurance company pursue the policyholder as (i) the uninsured driver was not mentioned on the policy, (ii) there has been no report of the bike being stolen and (iii) the policyholder has not asked for any of the terms of the insurance to be varied or cancelled.

If the bike was being sold to raise some money and the policyholder does not have any assets then it’s likely the insurance company will not pursue him too vigorously although the loss will count against him if and when he applies for insurance in the future.

Whether he owned it or not is immaterial. Indeed, the insurance company could claim it actually strengthens their case that he was no longer the registered keeper because by not advising them of this he was in breach of the original agreement in which he confirmed he was the registered keeper.

As to how you can cancel a policy on a Sunday ….. if he emailed them and could show when this was sent or even called them within a few hours of their offices re-opening then he would be in a strong position but as it is, there doesn’t seem to be any attempt to advise the insurer.

Thinking about the cancel on a Sunday, the law says that a document is considered received the moment you put a stamp on it and put it in the mail box.

[MrPin]

There's virtually not a vehicle I have sold, that somebody has not come a cropper in! I don't do brakes!