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Hastings Insurance Hit With £735,000 Fine


Well known car insurance company Hastings Insurance has been hit with a £735,000 fine after it cancelled a number of motor insurance policies at short notice after finding a pricing error in their system. In total the group cancelled 4,550 motor policies after checks revealed that quotes were on average £539 cheaper than they should have been. However, the group has been strongly criticised for putting its own interest ahead of those of the customers.

Many car owners were forced to arrange more expensive motor insurance at short notice and a number reported that they were not able to carryover their no claims bonus, resulting in premiums being higher than they should have been. The Financial Services Authority (FSA) found that the group acted too hastily in cancelling the policies and did not give customers sufficient time to arrange replacement cover.

In a further blow to ex- Hastings Insurance customers it was also revealed that many of them will suffer in the future, having to disclose the fact that they have been party to a policy which was cancelled - even though it was not their fault. The FSA claimed that the fine would have been over £1 million had the group not agreed a settlement at an early stage.

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