Frequently Asked Questions
The product you have purchased is a non-advised product. This means that all the information was presented to you online, including the policy wording and the terms and conditions, which you opted into upon payment.
The Financial Services and Markets Act 2000 Section 3B(1)(d) provides ‘the general principle that consumers should take responsibility for their decisions’. Section 3C(2)(e) notes the general principle that those providing regulated financial services should be expected to provide consumers with a level of care that is appropriate having regard to the degree of risk involved in relation to the investment or other transaction and the capabilities of the consumers in question.
At Nova Direct we attempt to be as upfront with our customer base as possible and aim to provide all policy information upon purchase with the detail clarified on our website under our FAQs. We feel that this adequately provides all our customers with the information they need to appropriately decide whether our products are fit for your purposes. It is on that basis that our typical approach is, ignorance of our policy wording or terms of business are not valid defence against being held accountable by them.
Our insurer partners do not favour client’s gaining instant insurance cover. Because of this we typically refrain from offering instant car insurance cover. Our typical policy start time is, at the earliest, midnight on the day of policy inception.
The Consumer Insurance Disclosure and Representations Act 2012 places the obligation on the seller to ensure that the information obtained during the quotation stage is clear, specific and accurate. This means that it is our obligation to take reasonable care to ensure that the questions we ask is clear and the information you have given is correct. If the information is found to be inaccurate we are legally allowed, under the act, to remedy the situation in order to take into account what we would have done had we been in possession of the correct information at the time of quotation. This means that either we can offer different terms or void your policy off completely.
Because of this act it is our typical process that once a car insurance policy application has been completed online, and your holding deposit has been taken, our call centre staff will call you to validate all your information as supplied to us. If the information is not 100% accurate, and any alternations are required, some of our insurers may apply charges for changing your policy information. This may result in your premium being adjusted to reflect the new risk. In some instances, this may result in the insurer denying to cover you further, which may prompt us to migrate your risk to a new insurer wherever possible. This process may also result in an increased premium, or your policy being voided off completely.
In addition to the verbal verification process, please note that insurers do share information. We may undertake background checks in order to verify your information which may include a credit check, a claims history check and a vehicle history check. Finally, it is customary to request copies of all your main documents in order to verify that the information presented to us upon quote was 100% accurate.
We stressed during the policy application process the importance of ensuring that your policy information was 100% accurate. Information presented to us by you does not necessarily have to be deliberately misrepresented in order for it to affect a pricing change. Every question asked is important to the underwriters in order for them to evaluate the price they are willing to offer in order to cover your risk. Please note that our broker team has no jurisdiction over these pricing rules and therefore they have not affected a pricing change unnecessarily or of their own accord. Failure to adjust a risk by our brokers to accurately reflect the risk presented would be deemed at best misrepresentation and at worst fraud. It is on that basis that our brokers have had no choice but to adjust your risk to accurately reflect your circumstances.
Whilst your price may have been adjusted we highly recommend that you do not focus solely on price as the sole means of assessing the quality of your policy. We have validated your risk and re-presented your risk correctly in order to avoid a claims denial at a later stage. It is our belief that all customers should be looked for the right price for the right risk rather than simply looking for the cheapest option which might not cover them in the event of a claim.
If after the policy verification process has completed and you request to cancel your insurance, please note that our cancellation charges will apply irrespective of time on cover. Our typical cancellation fees are £75 to cancel your insurance policy and if you have elected to pay monthly an additional £50 to cancel the finance agreement.
Our cancellation fees are detailed within our Terms of Business, which you confirmed that you had ‘read, understood and accepted’ at the time you completed your insurance application process with us online. These terms have been opted into and as per your acceptance, you have confirmed that you understood that ‘Ignorance of these terms post payment will not be deemed a valid defence against being held accountable by them’.
The 14 day cooling off period allows you to exit your contract of insurance, which is an annual contract. It does not provide that you can exist the contract without any charges being applied. This means that if you request a cancellation within 14 days we will initiate one but a pro-rota charge will be made for your time on cover and our cancellation fees, which are administrative fees, will still apply irrespective of time on cover. These charges are detailed within our Terms of Business.
There appears to be a myth that the 14 days cancellation period does not invoke any fees at all and that customers are entitled to an automatic full refund. This is incorrect. Under the FCA’s Insurance Codes of Business Sourcebook (ICOBS), rule 7.2.2, we are entitled to charge you for the services that you have used regardless of your time with us. Our cancellation fee cover our resource costs, advertising costs and the cost of our pre-acceptance searches. Full details of our cancellation fees can be found in our Terms of Business.
We typically aim to process a refund within 48 hours of receipt of your cancellation request. We cannot warrant for how long it may take your bank to deposit the funds into your account after it has been processed by us. We suggest that you liaise with your bank in order to gain greater clarity.
No. If your policy is cancelled for what reason, your vehicle will be removed from the Motor Insurance Database and your vehicle be marked as Uninsured. The fine for being caught driving uninsured can be up to £5,000 and a potential driving ban. In addition, having a driving uninsured penalty on your drivers licence could result in your future premiums increasing by as much as £2,000 per annum, and in some instances result in you being deemed as uninsurable. We therefore suggest that you seek alternative insurance at the earliest opportunity in order to avoid being prosecuted.
You can check if your vehicle shows on the Motor Insurance Database at: http://askmid.org.uk/
It is typical that we request copies of your V5, drivers licence summary, proof of address and proof of no claims bonus. Failure to provide these documents within 14 days of your policy starting may result in your policy being cancelled immediately without refund of premiums paid. Copies of these documents can be sent to email@example.com.
Please note that until your policy has been validated by our call centre staff your vehicle will not be put onto the Motor Insurance Database. Please note that you can speak to our call centre staff on 0203 745 8216 at any time and our opening hours are 24/7/365.
Upon inception of your policy it is a typical requirement by the finance provider that your first instalment is taken at the first available date after the start of your policy. Direct debits are run on the 1st, 11th and 21st of each month. For example, if you policy incepts on 5th June your first instalment will be taken on the 11th of June. The reason for this is that the finance provider will not loan your premium monies until your first instalment has been taken successfully.
If after your initial deposit has been taken you default on your first instalment you will be issued with a 7 day cancellation notice and a retry will be attempted at the next available direct debit date. If however the second retry is unsuccessful we will cancel your policy off immediately. Any our standing balances will be requested from you and any sums left unpaid will be forwarded to debt collectors for recovery. If however monies are owed back to you a refund of premiums owed will be initiated within 48 hours.
Only once your first direct debit payment has been taken successfully will you be able to change your direct debit dates. The available dates are 1, 11 and 21 of each month. Dates outside of these are not acceptable. To request a direct debit date change, please email us on firstname.lastname@example.org.
As per our Terms of Business, if you default on your direct debit, a £30 default fee will be apply to your outstanding balance.
Please call our call centre on 0203 745 8214 in order to request an amendment on your policy. At this point we will requote your policy which may result in a change of premium. A £50 fee will apply to complete any adjustments to your policy.
No. Your deposit is not your first instalment. This is your down payment for your insurance policy. Your first successful direct debit is deemed as being your first instalment.
Whilst we are not always able to, please note that we do make every effort to service our clients within the best of our abilities. Nevertheless, should you find our process to be lacking please review our Terms of Business which explains the process to follow in order to lodge a complaint.
Nova Direct is a trading name of Policy Excess Insure Ltd. We are regulated by the Financial Conduct Authority under firm no. 836031. Our FCA registration can be checked at https://register.fca.org.uk. Nova Direct is an authorised insurance intermediary, or broker, who places insurance risks with a panel of insurers.
Nova Premium Finance Ltd are regulated by the Financial Conduct Authority under firm no. 716933. Nova Premium Finance’s FCA registration can be checked at https://register.fca.org.uk. Nova Premium Finance Ltd are an authorised credit lender who charge interest on monies lent. Their typical interest rate can range between 11% and 15% depending on your risk and credit score. Nova Direct and Nova Premium Finance are not the same company but do operate under a linked arrangement.