This may be on wrong board, not sure, but need help anyway!

darloboy_2

Got a letter off a debt collection agency today, not really sure where I stand!!

I was insured with First Direct (car insurance), policy running from July to July.

In January I had my car stolen, which they paid up in March. I replaced car with a short term car until May. In May I bought a new car, advised insurer and they said the company that insured me through them would not insure my new car, so they gave me a quote from a different insurer and said that they would have to start a new 12 month policy. I said I can get my new car insured cheaper elsewhere, so thanks but no thanks.

A couple of weeks later I received a letter from First Direct, saying there was an outstanding balance on account. After querying it, they said the policy was settled pro-rata as it was terminated early, and I would have to pay a final balance.

Having read my policy, it states if I terminate the policy early I may be liable to a final settlement. However I have refused to pay, so far, using the excuse that because they could not continue with my policy, they in fact ended the policy by beng unable to insure me, the policy was not ended by myself. There is nothing in the policy terms to state that I am liable to charges if they cancel.

Their argument is that because the insurer they use has paid out for my car loss, they would be entitled to reclaim the monies paid to me as I have received a payment from the policy and have not paid the policy in full.

Have no idea where I stand on this, and it may be on the wrong board but I wasn't sure which to put it on.

If anyone can give any advice it would be very much appreciated!!

Thanks
Craig

Iriahm

hi, sorry i'm puzzled by this one. As this is a credit agreement you can phone the FSA helpline or if there is an insurance regulator (like OFCOM/OFWAT etc). Get someone else to read through all the small print just in case there is something about them ending the policy, but they could be in breach of contract by doing so. You would have breached the contract by ending it early, hence why you would have paid. or maybe i've got muddled myself!!
good luck!

caleo

I can understand them wanting the balance of the insurance seeing as they have paid out for your claim.........but surely if they were unable to insure your new car, then that is their problem???

CAB might be your best bet?


Caleo

nellis10

My car was hit by a drunk driver and I ahd to claim off my insurance. I got the money and a new car. I was told by my insurer that I had to pay the full year's premium in order for the insurance to pay out...luckily I only had a month left until renewal and the car I bought meant no change in circumstances or payments.

But I think in answer to your question....a policy which is paid out, must run the full year's term in order to be valid. Thus the insurance company not being able to insure your new car, is immaterial to the fact they paid out on your old car, for which they are asking the final settlement on the balance of what is remaining in the term of the policy.

Unfortunately you are in a sticky wicket as regards not being able to carry on your insurance with your new car, but to them, that is not their problem.

I hope this answers your question a little.