Car insurance policy cancelled....now demanding money?!

discobaby

I started a policy with Hastings Direct in the mid Feb this year.

The car came off the road a week or so after the policy started, but due to being away with my job I didn't get a chance to cancel before going away.

I came back in March and had a letter from them, basically saying that if they didn't hear from me within 7 days of that letter, they'd cancel the policy

'Great!' I thought, don't need to do anything then........now some four months later I receive a letter from them demanding £260 pounds.

I called them up and said that all they can do is cancel as of today's date and that'd be £186 please!!

They have admitted that on their system they can see the letter that was sent in March saying the policy would be cancelled within 7 days, but they are still saying all they can do is cancel as of today.

Surely if they say they are going to cancel, and then don't, that is their bad admin?

Help! Where do I stand?

Quentin

You will still owe them the cancellation fee, and premium up to whatever date is agreed the policy is cancelled.

It will be better for you if you are allowed to cancel the policy yourself rather than let them cancel it (you will have problems getting insurance in future if you accept them cancelling the policy due to your default, as you will have to declare this to all future insurers,)