over paid car insurance via direct debit

bevvy26

I have found out that I have overpaid my car insurance via direct debit to the tune of £800+ this was taken from my account over the course of 3 years. I tried to get my bank, santander, to recoup the money but they said it was my responsibility. ( i have since changed banks) I've contacted the insurance company and sent copies of my continuous proof of cover - but that was 3 months ago. do i have any redress to be able to claim this money back as I seem to be getting nowhere despite letters and phone calls incidentally i keep a more watchful eye on mya ccount using the internet nowadays!

Badger_Lady

How did it happen? Are you sure you overpaid, or were you just paying an APR on the premium?

lisyloo

You have two choices.
You could start a formal complaint.
If you just send in a letter to a randon address then this won't work and that might be what's happened.
You have to follow their proper procedure and go through to the correct department.

The other option is to take legal action.
Write to them stating you intend to take the matter to through the small claim track if you do not received a response with 10 working days.

I would recommend sending all letters recorded delivery.

It might be worth putting all the details on here though.
Just in case there is something you have misunderstood.
Paying monthly can be more expensive than paying annually becasue of interest charged.
I suggest putting up all your evidence here, so folks here can make sure you haven't misunderstood and it's not jsut a case of an interest charge for finance.

bevvy26

Many thanks!!
I had a policy in 2007 which was ended after my car was written off - all premiums were fully paid. Then without my noticing the direct debits continued...(foolish I know). Then in June I noticed a direct debit whilst online banking that I didnt recognise so i cancelled it. Then came a demand from a bailiff company demanding i pay the balance?! - Apparently, I had cancelled the direct debits on a policy which had been running on a car, which was scrapped by said insurance company some 3 years ago! The insurance company resolved the bailiffs and said they would 'try' to recover 'some of the money overpaid' if I forwarded proof of continuous cover. To date nothing has materialised

shudder

bevvy26 wrote: »

Many thanks!!
I had a policy in 2007 which was ended after my car was written off - all premiums were fully paid. Then without my noticing the direct debits continued...(foolish I know). Then in June I noticed a direct debit whilst online banking that I didnt recognise so i cancelled it. Then came a demand from a bailiff company demanding i pay the balance?! - Apparently, I had cancelled the direct debits on a policy which had been running on a car, which was scrapped by said insurance company some 3 years ago! The insurance company resolved the bailiffs and said they would 'try' to recover 'some of the money overpaid' if I forwarded proof of continuous cover. To date nothing has materialised

How can they ask for proof of continous cover if the vehicle was written off? Surely if you claimed through your insurance then they would now this, they cant be insuring a car that isn't on the road!

If the above is correct I would go back and explian the situation in more detail, are you going direct to the insurers or via a broker?

bevvy26

Yes exactly! (i even have a copy of the breakers details who towed it away!) Directly to insurers! I think they needed that to prove I have been paying for cover elsewhere and that i wasnt 'scamming' them?! Beyond me though!

lisyloo

They are just fobbing you off and so far they've been successful.

The slow but free method is to make a formal complaint, then if necessary you can go via the ombusdman although sometimes they have a wait of months if they are busy.

The quicker way is to do it is to take the legal route.
There may be a small fee attached but it will be much quicker.
https://www.moneyclaim.gov.uk/web/mcol/welcome

Make sure you send letters recorded delivery for 75p to avoid them claiming they were lost in the post.
They won't win with that argument but they will try it on to delay you further.

You need to force the issue one way or the other, otherwise they will just continue to fobb you off.

So "no more Mr/Mrs nice guy"

bouncydog1

And I don't understand why they would still take direct debit payments, unless you didn't cancel the policy. How do you know that the policy was "ended"? Although the car was written off, did you write and tell them that the policy should be cancelled and return your certificate to them?

Surely you received renewal notices and subsequent policy documents?

As has been mentioned, if you were paying by monthly direct debit the balance of the premium for the year would remain due unless this was deducted from the claim that was paid to you.

You need to dig out the documentation from the claim and see exactly what it says regarding the settlement payment.

bevvy26

No, I didnt think I would have to 'cancel' the policy as the car no longer existed! I didnt receive any renewal notices either though, and I moved house about a year later so never had any further contact with them albeit them taking the direct debits:o

bouncydog1

This is a bit of a grey area, as I think that insurers would probably argue that you did not instruct them to cancel the policy nor did you return the certificate. Remember the policy is issued to you as insured. You will probably find that there was an automatic renewal clause on the policy which is why the premiums continued to be taken.

They could also argue that you should have reviewed your bank accounts more regularly.

I think you have two options:-

Write to them setting out the facts and hoping that they will agree to a refund;

or seek advice regarding your legal position.

However it is not cut and dried that you have overpaid as under a contract of insurance there are certain obligations on both the insured and the insurer. E.G. You, as the insured, are required to return certificates of insurance to them to cancel cover. They as insurer are required to notify you of changes to your premium e.g. renewal.

I would not rush into taking legal action though as this appears to be complex - I would suggest that the best you could hope for was a refund of some of the premium (but it will depend on who the insurer is I suspect). I would write to insurers enclosing copies of the direct debit payments on your bank account - as you have online banking you should be able to get this easily - from the date of the accident. Send it all recorded delivery and get a signature and ask insurers what progress has been made.