Can i cancel my RAC insurance?

lusamoel

I phoned up today to ask how much notice RAC car insurance wanted,
I was told that it would cost me £117 to end the policy.:mad:
I have been with them for 4 years and never signed ANything that has said i need to pay more if i decice to move insurance companies.
They said they would have sent it to me although i have no record of it nor do they have my signature for anything.
If they say they sent it and thats a contract (but i never recived it).
I could say i sent them a letter to cancel in the 1st 14 days of having it.
But i want to know where i stand any advice would be helpfull
I pay monthly and i think it was renewed in Jan 2010 cheers...

dunstonh

I have been with them for 4 years and never signed ANything that has said i need to pay more if i decice to move insurance companies.

Each renewal you agree to take out 12 months of insurance. The terms you agree to also state what happens if you wish to cancel early.

They said they would have sent it to me although i have no record of it nor do they have my signature for anything.

if you applied online they would not have had a signature. However, are you saying that at no point in the last 4 years you have had an policy schedule/certificate or renewal notices?

But i want to know where i stand any advice would be helpfull

You need to pay it.

I pay monthly and i think it was renewed in Jan 2010 cheers...

What you mean is that you use a credit agreement to borrow money over 12 months to pay for the annual premium that was due in January 2010.

McKneff

best thing you can do is just let it run on till say November this year and then contact them then in writing to cancel it before it restarts in January 2011
by registered post or email them and ask for a receipt on your email account.

lusamoel

Thnx for the reply DUN.
ok. 1st;; Jan i phoned and got a price but the early leaving payment was not mentioned. Surly they can't change a contract without you knowing.
Over the last 4 years i would have had things from them but just because they send you their T/C's surly u have to agree with them, And no im sure i have not had that kind of letter from them.
And no i dont pay a credit agreement to pay over 12 months if i though i was or indeed am then thats another thing i would not have agreed to.
I usually pay yearly to save money but early this year had my ADI test (approved driving instructor) and passed, Knowing this in Jan is the reason i payed monthly. But thnx for the response Dun Im not going to pay this as i was never notified of the changes Definatly not on the phone when i agreed to pay monthly.

lusamoel

what i cant grasp is that if i dont recieve any thing from them how can this be a contract? what if i sell the car? and if they say they sent a letter why cant i?

Foggster

I understand your frustration but I cant get my head around why you never questioned the insurance. Did you even know you were insured? What would have happened if you had had a crash and found you never had insurance, you would be saying you have never had anything and people would have said the onus was on you to check. You have 1 vehicle to insure they have 10000s, they cant keep writing to you and reminding you that you have insurance.

You cant have it both ways.

Live and learn from this, you know when your renewal is now and you can get yourself prepared for the cancellation and researching new insurance.

dunstonh

ok. 1st;; Jan i phoned and got a price but the early leaving payment was not mentioned. Surly they can't change a contract without you knowing.

They dont have to mention it. Could you imagine if they had to read all the T&C to you. There are key points that need to be mentioned but this isnt one of them.

because they send you their T/C's surly u have to agree with them

each time you renew, you are agreeing to them. However, I dont think it matters as I believe RAC issue new policy versions only for new business and not existing policyholders. Indeed, their website showing the policy docs appears to support that.

I found their cancellation terms in less than a minute on a 2006 policy:

Following the expiry of any statutory cooling off period,
you continue to have the right to cancel this policy at any
time by calling us on 0800 404 7516 and returning your
RAC Direct Insurance certificate of motor insurance to us.
If you have not made a claim during the current period of
insurance, we will refund the premium you have paid for
the cancelled period of insurance, subject to a deduction
for the time for which you have been covered. This will be
calculated on a pro-rata basis for the period in which you
have received cover and will include an additional charge
of up to £30.45 unless you cancel during the 14 day
cooling off period in which case this charge will not apply.
(inclusive of Insurance Premium Tax where applicable) to
cover the administrative cost of providing the cover.

Im not going to pay this as i was never notified of the changes Definatly not on the phone when i agreed to pay monthly.

That is your choice. However, you should be aware that the monthly payment method is a credit agreement which allows them to record it as a default on your credit file. In the current environment a default on your credit file will stop you getting loans, credit cards and mortgages until the default is cleared.

dzug1

If you are leaving early you are asking them to change the annual policy into a short term one. Short term ones cost far more pro rata than long term ones - that will be most of your figure - and there will be an amendment fee as well.

And whether you knew it or not, monthly car insurance premiums are always but always in the form of a credit agreement on an annual figure.

If you read through this forum you will find a similar post to yours every few days.

If you value your credit rating you will pay.

lusamoel

Yeh cheers Dun im not that stupid not to bite the bullet but indeed i shall try
I dont know where FOGGSTER is comming from?
Why would i question something i dont know about?
When u buy a drink Do you ask if it has salt in? why would you? indeed.
Did i even know i was insured? did you read the part where i said "I have been with them for 4 years"
I have had a insurance certif.
And finally Why would i want them to write to me all the time to remind me i have insurance? They send me junk mail quick enogh though .
I think you might have the wrong end of the thread there fogg.
Thnx for your advice though if that wat it was..:eek:

Foggster

I wouldnt keep paying for something I never had a contract for lusamoel or some kind of agreement. Why didnt you question all this when you first took the policy out? Could it be it all looked pretty boring and it got chucked into the back of cupboard?

lusamoel

Yes Fog, honesty 1st. cupboard no, Bin possible.:A
But what would you have asked in jan on the phone for renewal?
would YOU have asked
"if i decide to move insurance company's will i get charged over £100"?
i could have covered most scenarios i guess, but i really thought after telling them.
"i dont want to pay for a year as i have a test coming up and if i pass that test then i will not need RAC insurance hence moved from a yearly payment to a monthly 1." I think at that stage the advisor might have said something (should he?) would he. but didnt.
I honestly thought i would pay 1 extra month possibly 1 months notice.
Now when they said 112 bux to leave lol i went nuttz.
but you live and learn and once bitten. cheers for help anyeays.