Hastings Direct has been fined GBP735,000 by the FSA (Financial Services Authority) for treating its customers unfairly. The car insurance company was found to have cancelled over 4,500 policies following a pricing error.
The problem was caused by the Hastings Direct car insurance quotation system, which generated quotes that were lower than the market rate. The insurer then decided to cancel these policies, a step that was not acceptable according to the FSA.
Although a cancellation clause was included within the policies the FSA felt that Hastings Direct should have considered other options first rather than invoking the cancellations. They believe that it is not acceptable to cancel cover because of what is simply a pricing error.
New car insurance customers at Tesco Finance are able to claim a free pressure washer if they buy their policy before 25 June 2008.
Upon buying the car insurance policy Tesco Finance will provide the customer with a voucher that can be redeemed at Tesco Direct for a Karcher pressure washer. New car insurance customers can also enjoy discounts of up to 15 percent when buying online.
A Tesco Finance spokesman was delighted to be able to offer such a great incentive and hoped that many people considering their current car insurance cover would look at Tesco since they offer very competitive rates as well as great promotional offers such as this.
Drivers who omit to mention previous drink driving convictions could well find their car insurance is invalid should a claim be made say Norwich Union.
A Norwich Union representative understood that a conviction for drink driving would increase a drivers car insurance premium considerably but by choosing not to declare it at all would cost much more when the cover was deemed invalid. Such a conviction would certainly come to light when a claim was made so it is in the drivers interests to declare it upon buying the insurance cover.
Should a person be found not to have declared something such as this and then had their cover terminated this information would be held on a central car insurance database explained Norwich Union, which would increase the premium still further.
