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Unwanted car insurance cancellation and unwanted cost!
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# 1
Mcgwan
Old 16-02-2012, 7:38 PM
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Default Unwanted car insurance cancellation and unwanted cost!

ackground info:!

Young male driver 19 years of ago Held licence since 01/04/10 22 months!
Own a BMW e36 318is 1.9 petrol!
Insurance policy held with Allen & Allen which I think are a smaller company within mymotorqoute.com :S!
cost of policy 2360 Or 236 a month for ten months with the a deposit of 300!
Policy held since about 2 months ago!
My dad is also a listed driver!

I received a phone call from Allen & Allen 2 days ago, when I was informed I had made a mistake on my quote that I'd done on go compare. I had put on my quote I'd held my licence since 09 was a genuine mistake and I had no idea of even done it. Due to this they said they would have to charge me another 700 pounds to carry my current policy on, which I have no way of paying. The employee then sainted would try and find a policy the same price as mine or of a similar price an ring me back the next day.!

They did not ring back so I rang them today to enquire as to whether they had done anything with my insurance. The first person I spoke to was very rude and told me that they had not found any cheaper policy's and "it would be in my best interests to pay the extra" like I said I do not have this sort of money. The only other option she gave me was to cancel my policy, she then abruptly redirected me to someone else who dealt with cancellations. I had not said I wanted to cancel my policy, and after being spoke to rudely by another person was redirected back to the previous woman. Who put me on hold and redirected me to someone else (I was getting very annoyed by this point). after being told my options again this time by a nicer person I was put on hold for a supervisor which I asked for. I passed the phone to my dad at this point. After speaking for several minutes my dad told me that even to cancel my insurance they would charge me 400 pounds. Which is still way more than I have, they would not agree to allowing me to pay a smaller amount or taking the deposit I've already payed instead. Feeling like I had no other choice I cancelled the insurance and immediately rang my bank to cancel the direct debit to Allen & Allen.!

Now I don't know what to do now and am In extreme need of some advice?! Anything at all will help.!

Thanks for reading
Luke
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# 2
dacouch
Old 16-02-2012, 7:46 PM
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Will they not divide the £700 over your remaining instalments
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# 3
dunstonh
Old 16-02-2012, 7:49 PM
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Cancelling the policy was probably the most expensive option. Plus, as you paid monthly, you were borrowing the money for the annual premium under a credit agreement. So, when they come to you to ask for the £400 (assuming you havent paid it already) then unless you pay it, they will register it as a credit default which will knacker your ability to get credit for 6 years. And given the size of your premium, it may well knacker your ability to get monthly car insurance again as you could be over the floor limit for auto-credit.

If you cant afford the premium then what are you doing driving a BMW at 19? Maybe selling your car and getting something you can afford would be better?

Assuming you dont want to do that, then ask your dad to pay a proportion seeing as he also drives it. Or go back to the insurer and say you made a mistake and didnt mean to cancel and wish to reinstate.
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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# 4
Parking Trouble
Old 16-02-2012, 8:29 PM
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Have to agree with Dunstonh on this (damn I'm losing it).

£400+ and nothing to show for it or £700 to stay insured following your error.
Mr Straw described whiplash as "not so much an injury, more a profitable invention of the human imagination—undiagnosable except by third-rate doctors in the pay of the claims management companies or personal injury lawyers"

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# 5
Mcgwan
Old 16-02-2012, 8:39 PM
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Thanks for the advice I hadn't thought about the credit. I can afford the car and I can afford the extra if they split it. It's just I own another car as well which im currently doing a lot of work on and if I pay the extra 700 in monthly installments I will not have enough money to do wht I intend and will have to pay a lot more than I would want to. I only bought the car in the first place because I could insure it at the maximum price I was considering paying. Another thing that's annoying is the car only cost me 650 quid. So now I think I'm goin to pay he 400 and try and swap my BMW for something a bit smaller cheaper to insure etc.
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# 6
McKneff
Old 16-02-2012, 9:13 PM
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Ask for a breakdown of the £400 some of it maybe unfiar charges in which case you can dispute it.
No one can make you feel inferior without your consent
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# 7
mikey72
Old 16-02-2012, 10:19 PM
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Check how the cancellation has been worked out, it should be roughly pro rata, with a cancellation fee, if it's not, make a complaint, then refer it to the FOS.

http://www.financial-ombudsman.org.u.../insurance.htm

As to the original driving licence error, if you are sure you entered the information correctly, have a read of the FSA guidelines

http://www.fsa.gov.uk/pages/consumer...on/index.shtml

and take that further as well if you need to.
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