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?