Car insurance nightmare with Hastings Direct

PaulC27

Recently I part exchanged my vauxhall astra for a ford focus. I telephoned my insurer (hastings direct) to change the policy over to my focus and was told they would call me back the next day as it was late and they had trouble finding details of my new car registration plate - which by the way, i have since had confirmed legitimate by the DVLA and RAC.

Anyway, I waited in all day and they never called. I tried calling them several times and couldn't get through. so i had no choice but to take out a policy with another insurer.

So FIVE days later they called back. I told them I had already taken out a policy with a different insurer and asked if they had canceled my previous insurance. The guy said he couldnt do it from his end and had to put me through to cancellations. instead the line went dead! i called them back, was told again that they couldn't cancel and this time was put on hold for 20 minutes and the line went dead AGAIN!

When i got home from work I logged on to my barclays account, checked i had paid this month's cover and cancelled the direct debit.

Now, two weeks later I get a call on my landline from hastings telling me I owe them £102 for not being 70% of the way through my policy (as i was currently only 6 months in), plus a £45 cancellation fee!

I've made no claims while being covered by them and i cant see anything else in their very unspecific agreement that outlines this rule. I told the representative that this can't possibly be right and was told that he would call me back while he "sorts this out". About 15 minutes later he called back on my mobile, i answered but somehow he couldn't hear me! although i could hear him - he basically just said hello twice then hung up.

Now, apart from the incredible incompetence from hastings insurance. i would really appreciate advice from someone a bit more knowledgeable on the subject.. Are they right in demanding this payment for cancellation??

Quote

Unlucky.

Still, Hastings Direct. What did you expect?

Was it nice and cheap?

PaulC27

it was the cheapest quote, yes. but are they right in demanding 70% of the full annual cover plus a cancellation fee?

Quentin

They will be charging you as set out in their policy for cancellations. (If not, then dispute it with them).

(You don't get a full pro rata refund of premiums, and as you were paying by instalments there may be an interest penalty imposed because of your early cancellation)

Quote

PaulC27 wrote: »

it was the cheapest quote, yes.

Now you know why.

bmwe36

Quote wrote: »

Now you know why.

your cancellation will be worked out like this!

1. pro rata charge (TOR=Time On Risk) which means how long you have been on cover. you can see this charge on the back of your certificate
2. 45 canx fee as stated on terms of use
3. full charge for ancilliaries such as legal protection, personal accident cover or breakdown cover ( if you have had these on policy for more than 14 days on policy you will be charged the full price for the cover as read to you when policy/ies are taken out on phone or in key facts if taken out on web)

legal = 26.99
BD= 79
PA= 19.99