Car Insurance Cancellation Charges

angiesgirls

Hi - I need advice.

In July '08 I took out a car insurance through this website. No problems and got a good rate. However, when I was due for renewal the new cost was horrendous despite having another claim free year. So I took out a policy with a new company - again, all is well.

However, the first insurers have been demanding a cancellation fee. For what? I didn't renew so did not have to cancel. Problkem is that a debt collection agency is now involved.

Is it legal for insurers to make charges like this. HELP!

dunstonh

I didn't renew so did not have to cancel

What you mean is that you didnt tell them not to renew.

Is it legal for insurers to make charges like this. HELP!

yes.

If you check the renewal letter you were sent, it will say what you need to do next if you do or do not wish to continue with the policy. With auto-renewal policies, you must tell them you are not going to renew and it would have said that in the letter.

You must have also ignored a number of the chaser letters for it to have already been passed to a debt collection agency. I suggest you go back to the insurer and try to negotiate an acceptable outcome.

McKneff

Auto renewal is quite common now for insurances, its a case of reading the small print when you take the insurance out. In which case they renew your insurance full stop.

They have to be informed that you do not want to renew.

It works both ways, lots of people used to get into trouble when they suddenly realise 3 months down the line that they havent renewed the insurance that ran out and moan that the ins. co. didnt remind them.