Insurance Nightmare

[westerdam2]

Just spent the past hour in a nightmare scenario with esure customer services

Recently bought a Fabia through Skoda Finance (SF) and advised insurers of change of vehicle. Received documentation yesterday from SF saying I should advise my insurer that SF were the owners under the terms of agreement ie until the 2 years' repayments had been completed.

Esure agent said that they do NOT insure vehicles under hire purchase agreements and that I would receive a notice of cancellation of my policy in 7 days And I've been insured with them for years!

Called 2nd agent to check this. Waited while he went to find out and answer was that he thought I was covered

Asked to speak to Supervisor. It seems I am covered although legally I am niot the owner until end of hire purchase term. But he had nothing available to confirm this in writing

This is my 1st venture into buying a car via hire purchase and there seems to be a lot of vagueness around in the insurance field. Has anyone else come across this problem? Does anyone think they might not be covered having read this? Don't all panic at once

[Beretta]

Anything purchased on hire purchase remains the property of the seller(In this case Skoda Finance) until the final payment is made. The vehicle is yours to drive about in whilst you make the payments, but if you default on any payment then (SF) will take steps to either get the money from you or claim the car back via the courts or bailiff.
Also in the event of a total write off, the insurers would deal with the seller (SF) direct and pay them first, and anything, if anything, is left over, it would be sent to you. This could leave you out of pocket.
The reason that SF wrote to asking you advise your insurers of their interest in the car for the next two years, or until you complete the HP agreement, was so that in the event of the total loss as mentioned above, then they would deal direct.
Bit pointless really as all vehicles subject to a HP agreement are recorded on a central register available to all insurance companies.

[westerdam2]

Originally Posted by Beretta

The reason that SF wrote to asking you advise your insurers of their interest in the car for the next two years, or until you complete the HP agreement, was so that in the event of the total loss as mentioned above, then they would deal direct.
Bit pointless really as all vehicles subject to a HP agreement are recorded on a central register available to all insurance companies.

Thanks for that. Agreed that anything under a hire purchase agreement does not become your property ( ie you are NOT the owner) until final payment has been made.

The worrying thing was that customers services were intially saying that my insurance was being cancelled within 7 days and the thought of spending Fruiday afternoon trying to get new cover was too much!

I also pointed out to esure's supervisor that they nearly lost two policies because of what their agent was stating. Complaint noted and methinks the catch all 'training issue' has been raised. Question: Why aren't they fully trained before they are let loose on custmomers

[Beretta]

Probably because they are in call centre on the other side of the world.

[westerdam2]

Originally Posted by Beretta

Probably because they are in call centre on the other side of the world.

I purposely didn't mention that

Interesting development though when I was transferred to the supervisor. The 'international' cross talk on the line disappeared and normal telephone quality was restored with an 'Oxbridge' accent dealing with the situation

[thegavsters]

I never got asked about this by my insurer and SF never sent me a letter either. Is this a new thing? as insurers have only ever asked who the registered keeper is and thats me.

[Moose]

Yes Gav, they should ask you who the owner is. In practice it doesn't make that much difference, but if you have a smash, make sure you tell the finance company. If its a write-off, you'll see the cheque then forward the cash on to the finance company. At least thats what happened to me with my Smart.

[thegavsters]

Originally Posted by Moose

Yes Gav, they should ask you who the owner is. In practice it doesn't make that much difference, but if you have a smash, make sure you tell the finance company. If its a write-off, you'll see the cheque then forward the cash on to the finance company. At least thats what happened to me with my Smart.

no worries about it now. A month into the hp I got a bank loan and paid it all. If the dealer hadnt lied to me in the first place I would have got the bank loan straight away. aprs better and the buggers mine.

[westerdam2]

Originally Posted by thegavsters

no worries about it now. A month into the hp I got a bank loan and paid it all. If the dealer hadnt lied to me in the first place I would have got the bank loan straight away. aprs better and the buggers mine.

I was on the point of cancelling the finance to avoid the insurance problem (the interest rate is virtually the same as my bank quotes) but when I called SF they told me it would cost me £138 to cancel despite the first payment not being due until the middle of next month

Next time its cash and no hassle. Chance would be a fine thing....

[thephm]

Hmmmm .... can't .... resist .... the ..... urge .....

[dons flame retardant suit]
If you can't afford it with cash you shouldn't be buying it !

[oc-quattro]

Originally Posted by Beretta

...Also in the event of a total write off, the insurers would deal with the seller (SF) direct and pay them first, and anything, if anything, is left over, it would be sent to you. This could leave you out of pocket...

That's where GAP Insurance comes in.

[Beretta]

Originally Posted by oc-quattro

That's where GAP Insurance comes in.

Quite right, yet another way for insurance companies to get more money out of you.

[westerdam2]

PART 2 starts here:

So a week has passed since a Customer Services person at esure told me my policy was being cancelled simply because my second Skoda had a hire purchase agreement. Readers of my earlier post will recall that this was counteracted by a Customer Services Supervisor who advised that everything was OK and I wouldn't hear any more about the wrong info given by his far off colleague......

Guess what? Just received a letter dated 5 April (5 days after the 1st call) from Head of Customer Services at esure My insurance - he says - is being cancelled from 1 minute past midnight on Wednesday

Extended phone call to another Supervisor who had his ear more than warmed. Transpires that the original Customer Services incompetent had issued the cancellation, it had not been stopped by Supervisor 1 (as promised) and Administation has issued the cancellation notice. Supervisor 2 says bin the letter and states that I'm covered. "Some staff panic" "Training issue" etc.

Is it me, or does anyone else think this is a prime case of total inefficiency?

Tomorrow will see an appropriate letter being dispatched to:

Peter Graham
Chief Executive
esure at the Observatory
Reigate
Surrey
RH2 0SG

Anyone with esure may wish to take note of his name and address should they be unfortunate enough to encounter a similar fiasco.

[DGW]

All UK insurance companies are now regulated by the Financial Services Authority. I suggest that you write to them too, and let eSure know that you are doing so.