Help, My insurance has been cancelled

I am a named driver on my wife’s insurance and I had a collision on a roundabout when driving her car.  Liability for the collision is disputed. The collision coincided with my retirement.
After informing my insurer that I had been involved in an accident under different insurance they cancelled my insurance.  At first I was told that because I had retired that I had more opportunity to ride and therefore presented a greater risk but when I pressed for more information I was informed that my present insurer would not quote because I had 9 years NCD.  The insurer was unable to advise me of any clause in the policy under which they had acted.  I had renewed the insurance 2 months before the collision and the policy had another 10 months to run.  The insurer offered me another policy at double the price. 
Is the insurance company entitled to terminate a policy in these circumstances?
Mr D T , Herts, by e-mail

Answer

This sounds very odd to me. You paid to be covered for 12 months. On face value they appear to have breached the contract with you. I have not seen the policy terms and conditions but I have read the correspondence and they don’t appear to be relying on any specific term.  If you wish to pursue it I suggest you send a formal complaint to them and await the response. If they have not resolved it to your satisfaction or if they don’t respond within 8 weeks or if they reject the reasons for your complaint then you may wish to refer this to the Financial Ombudsman Service (FOS) who will investigate this free of charge for you. They have the power to award up to £150,000 against an insurance company. You can obtain a claim forms from the FOS website www.financial-ombudsman.org.uk

Download

Ask the expert (MCN Column pdf)