Cancelling Insurance after Claim

jilldes

Hi

I'm moving house in the next couple of weeks and have taken out a new contents insurance policy with Asda for the new house. It was half the price of what I am paying now. It is due to start the day I move in and I have already paid a deposit.

My problem is that I am currently insured for contents only with NATWEST. I have just had to put in a claim as a file cabinet had rusted all over the dining room carpet. We got most of the stain up but it still looked unsightly. As we can't afford to have any of our deposit retained for the cost of a new carpet we thought we'd better claim. The claim is now going through and a new carpet should be fitted very soon. Before the claim, when I had called NATWEST to find how to cancel, they told me to call on the day I wished the policy to end as they couldn't future date the cancellation and that it would cost me a month's premium (fair enough).

Can I now cancel my policy or do I have to keep it going as I've got a claim going through?

Quentin

There would be no point cancelling as there will be no refund now you have made a claim.

jilldes

Quentin wrote: »

There would be no point cancelling as there will be no refund now you have made a claim.

Sorry feeling a bit thick but I wasn't after a refund as I pay by DD monthly and I know that to cancel early means it will cost me a month's premium which I am fine with. All I want to know is if I can cancel the policy after the claim has been settled?

missile

You will need to check the policy documents, but I am pretty sure you will find you are still liable to pay a years premium. Do not be tempted to simply cancel the DD.

Quentin

jilldes wrote: »

All I want to know is if I can cancel the policy after the claim has been settled?

Yes - but what is the point?

You would be better off cancelling the new policy before it starts, not cancelling your current one (which you will have to pay the full 12 months for), letting your present one run its course, then reviewing your options at renewal time.

This claim may affect the new policy anyway (as you may have to pay a higher premium in view of the claim you have made).

jilldes

Quentin wrote: »

Yes - but what is the point?

You would be better off cancelling the new policy before it starts, not cancelling your current one (which you will have to pay the full 12 months for), letting your present one run its course, then reviewing your options at renewal time.

This claim may affect the new policy anyway (as you may have to pay a higher premium in view of the claim you have made).

As I mentioned the new policy is half the price of the one I currently hold with NATWEST. I have already set up the new one to start from 7/8/08 which is when I move. At the time of setting up I informed them that I had not claimed before (which I hadn't at the time). Should I now call them and tell them about the claim?

Quentin

Yes (if you don't it will be invalid anyway) - but why not phone up and cancel it? You will be wasting money by starting another policy now (however cheap it is), as you are bound to pay the full premium for your current policy in view of the claim you have made?

jilldes

Thanks for your help. I've called Asda and cancelled my new policy. Just waiting to see if I get my deposit back now as according to their website


Cancellation of the policy within the first 14 days
Provided that there has not been a total loss claim and you have called us or written to us within the 14 days to confirm cancellation we will make a charge for the time you have been on cover plus £20.00.


I paid a deposit of £23.91 but my policy wasn't due to start until the 8/8/08 so I don't know where I stand. Any ideas?

Quentin

From the extract you quoted it looks like they can charge you the £20, (why didn't you ask them about it?)

jilldes

Quentin wrote: »

From the extract you quoted it looks like they can charge you the £20, (why didn't you ask them about it?)

I did but the man I spoke to on the phone didn't know and said I would have to wait and see if it was refunded. I will be calling them again today to check.