Help with car insurance

karenw

I have been with the same car insurance company a couple of years and when my insurance came up for renewal last month it had doubled so i decided to cancel my direct debit and look elsewhere, today i have just recieved a letter from the people i was insured with saying i must pay them one months insurance plus a charge of £30 :eek:

I don't want car insurance from them as the new premium was way to much and i can't afford it.

The letter says it's a notice of default and i don't know what to do please can someone offer me some advice.

Badger_Lady

How close to your renewal date did you cancel?

It sounds like you had already started a new year's policy with your insurance company, in which case you have to comply with their cancellation rules and decide whether it's worth doing so in order to take out a new policy with someone else.

Have you had any other quotes?

karenw

I didn't actually cancel the insurance i just cancelled the direct debit thinking that's all i had to do. I've had a few quotes from other companys online

Badger_Lady

Ah. Then you have renewed your insurance with the current provider, but failed to pay your premiums. Oops.

Badger_Lady

Incidentally, if cancelling the Direct Debit had cancelled the insurance, surely you would have been driving without insurance for the last X months?

karenw

I have not been driving my car it's in my drive, it's only been a few weeks since my insurance ran out i'm trying to find the best deal around.

Badger_Lady

Well you now need to compare:
1. Your renewal price
with
2. Quote from another insurer + cancellation costs from old provider

If '2' still works out cheaper, you're OK. Otherwise you'll have to stick with '1'. And next time make sure you cancel the insurance policy before renewal

karenw

Getting all my quotes now and working it all out.

Thanks for the advice, i will make sure i call them to cancel next time

Quentin

You need to sort this.

If you don't do anything, your insurer will cancel your policy due to your non payment. Having a cancelled policy on your record can make getting insurance in future difficult (and expensive as it may be only specialised insurers are prepared to take you on).

karenw

I'm trying to sort it now, i thought cancelling the direct debit would cancel the policy and i would get a new policy from someone else and that would be the end of that

karenw

Just rang the insurance company and it's gonna cost me £180 to cancel :eek: