Is it fair for an insurer to refuse cover due to a no fault accident?

My 68 year old mother has just purchased a new Fiat 500 to replace a 10 year old Ford KA. Two years ago, while the car was parked in a supermarket car park and my mother was shopping, the KA was hit by another vehicle. She had the accident damage repaired by the other vehicle's owner's insurance company. As a matter of course, she informed her own insurer of the accident and repair. Now when she informed her insurer of her new car purchase, they refused to cover her citing the accident. When challenged, they responded that it didn't matter that the accident wasn't her fault, nor that they incurred no cost. They considered it grounds to refuse coverage and directed her to another insurer who was able to offer cover (albeit it a higher price, though given the car is newer, perhaps understandable). Is this acceptable practice?

Asked on 26 May 2017 by TJ

Answered by Honest John
Every insurer has the right to refuse cover, but considering the risk that your mother is, and the incident, they are clearly being stupid. What you can do is (if they are on the internet) requote using your name but using her details and requote . If they provide a quote and it is less than you have now had to pay, raise a complaint and take to the financial ombudsman. Your insurer has to treat your fairly and cannot penalise you through an incident that is not your fault.
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