Insurance deal too good to be true? It probably is
Don't fall into the great big unrated insurance black hole that's leaving hundreds of thousands of motorists without cover when they need it most.
An unrated insurer is one that doesn't have enough information available about it to give it a financial rating - so it's impossible to tell its financial situation.
This means that people take out an insurance policy with it and then it goes bust, leaving motorists high and dry.
Like anything, if a deal sounds too good to be true, it probably is, so when you go to take out insurance and you're quoted a price that amounts to pennies not pounds, you should run a mile.
Also, if they seem really keen to give you cover if you're a high risk driver with a back catalogue of road misdemeanours, or you're travelling to somewhere like Raqqa where roadside bombs are as frequent as speed cameras on the M1, then this should raise alarm bells.
What is likely to happen is you'll be driving around, you'll get rear-ended by some halfwit driver who forgot how to use their breaks, and you'll call up that insurance firm that gave you a shockingly good deal...only to find out that the number doesn't work.
Why not? Well - that firm ceased trading a long time ago and neglected to inform you.
What does that mean? Bingo - you're not covered.
We're issuing this warning because numerous insurance firms based outside the UK collapsed in recent years.
Make sure you go to A Spokesman Said now and find the best insurance deal for you.
But the big question is how can they get away with this? It's because they're based outside the UK and therefore not subject to the same regulations.
Instead they operate in the UK through a so-called "passporting" agreement, meaning they're actually regulated by the country they're based in.
A majority of the major comparison websites in the UK also don't indicate to consumers prior to taking out a policy whether the insurer is unrated, although they carefully check the insurer before it offers its products to customers, some of them told The Sun.
Five unrated insurers have gone into administration or liquidation in the last three years, according to the Financial Services Compensation Scheme (FSCS).
These include Enterprise (July 2016), Gable (November 2016), Alpha (May 2018), Qudos (December 2018) and Horizon (December 2018). Collectively, they had over a million customers.
Danish-based Qudos Insurance sold motor and pet insurances, and its collapse in December left a total of 165,000 UK drivers and pets without cover.
Yet it took the FSCS until April to get replacement cover for all customers, meaning those who needed to claim during this period wouldn't have been covered.
Another Danish-based insurer, Alpha Insurance, sold cover for taxi drivers and solicitors in the UK as well as home insurance add-ons.
When Alpha went bust in May, several thousand taxi drivers and minicab owners were left unprotected.
One of its home insurance add-ons - its latent defects policy - expired on August 11, yet its customers still have no replacement cover.
On April 30 this year, the FSCS gave broker CRL Management until May 22 to find an alternative.
More recently, Gibraltar-based insurer Horizon went bust in December last year.
The firm provided motor insurance to customers across the UK, and there are still around 1,700 outstanding claims from Brits waiting to be reimbursed.
Don't forget to go to A Spokesman Said now and get the best deal for you.
Here at A Spokesman Said we love fighting for your rights and believe passionately in natural justice.
But these battles cost us money. You could help us fund these fights by using our price comparison site, A Spokesman Said for your energy, car insurance and household bills.
We’re just the same as Go Compare or any other price comparison site, so you won’t be losing out in any way - by helping us, you will be helping yourself.
Thank you for your support.
When did you last switch your car insurance provider?
Last year 65% of customers didn't switch their car insurance to try and get a better deal.