car insurance

pitman_2

When my wife's insurance quote came in I shopped around and got a better quote,I aked the company or a better quote and they could'nt beat it so I took the other quote.I thought, because we signed no forms the original insurance cover would stop automatically.It did'nt and having just realised stopped our D.D with the bank and rang and told the insurance company what I had done and asked for my money back.They said I had to pay them X amount to to stop the policy.Is this right?

lisyloo

I thought, because we signed no forms the original insurance cover would stop automatically.

Many policies these days are on "auto-renewal".
This means they get renewed automaically unless you tell them otherwise.
This information should have been in your up front information which you are meant to familiarise your self with.
You should also have received a renewal notice about 2-4 weeks before your insurance was renewed.
The letter is usually about 1 side of A4 and says in big letters "What you need to do next". You are meant to read this an act on it.

They said I had to pay them X amount to to stop the policy.Is this right?

Yes, because you didn't cancel it, you will now have to pay an admin fee.
This is quite legal.
If you don't like it then I suggest getting a policy which doesn't auto-renew.
My car insurance is currently with Sheilas Wheels.
I checked my policy and renewal notice and it does not auto-renew, although your method of payment can make a difference.

There are 2 ways to go with this.

1) Either get policies that don't auto-renew. This requirement will narrow your search and may not give you accesss to the cheapest polciies.
2) Accept that this is the way the world is and use a diary or spreadsheet to make sure you check things out 1 month before hand.
I keep an excel spreadsheet in with insurance dates, MOT, tax, servicing etc. so I can keep on top of everything in one place.