HELP car insurance cancelled and now they want to charge me!!

murphyslaw

Hi, Ive just had a call from my old insuarance saying I owe them £229!! My policy ran out in October 2010 and with one thing and another I only realised this month I had not recieved any mailing to say that is was due for renewal or a reminder etc It run to the 4th of the month I cancelled my direct debit and took out another insurance on the 5th Jan 2011. I then recieved a letter from them saying the direct debit had been cancelled and my car was not insured and to contact them if I didnt they would cancel the insurance so I didnt contact them. So were on earth do I stand?? I cannot access the documents as the policy had expired and it was done online ie paperless billing I have asked them to post all the info and I will contact them

Help please!

lisyloo

You stand in a bad way I'm afraid.

You need to get a breakdown.
You will owe them for 3 months (approx) insurance plus a cancellation fee (which I think can be up to £75).
3 months will not be 25% of 12 months.
This is because the insurer will have to do the same amount of work, so it's going to cost more than 25%. The information on what it would cost for 3 months will be in your booklet, but it will be more than 25%, so you will owe them some money for the insurance you have had.
You need to get the breakdwon and see whether it's correct.

Now that you've had insurance cancelled through non-payment you will have to declare this on all insurances in future which puts you in a very bad position for all insurance in future.

If you can tell us which insurer it is we might be able to find documentation on-line to say what you have to pay for 3 months cover.
You could also look in your policy booklet if you have it.

murphyslaw

Thanks for the reply. I have paid them though for nov, dec and January so it cant be a none payment issue surely?

lisyloo

I have paid them though for nov, dec and January so it cant be a none payment issue surely?

You say you cancelled a direct debit after paying for 3 months on a 12 months contract. So you didn't pay for the other 9.
You had a contract and you renaged on the deal.
They cancelled because you weren't continuing to pay.
It's not "pay as you go", it's a 12 month contract.

Other insurers ask whether you'd have insurance refused or cancelled in the past and you will now have to asnwer that question honestly and now pay higher premiums or risk being found out and not covered.

murphyslaw

ok thank. so is there a way to rectify this? as he rang today? can I just pay up and be ok? I only got the letter on friday.

murphyslaw

I cant get on the Kwik fit site to have a look at the info there must be a problem with it

Quentin

Paying up will stop them chasing you for money, but won't "rectify" the cancelled policy on your records.

vaio

Unless you can persuade them to reinstate it

lisyloo

Yes, if you can persuade them to reinstate it then this is worth paying for even if it costs you a bit.
This is because you won't face increased premiums for the rest of your life because of non-payment.

You will of course have to cancel your new insurance and pay the short term charges and cancellation fees for that one, but you can do that in an orderly manner. I mean you can instruct them to cancel and not just cancel the DD.

murphyslaw

re- instate my policy? I know the new one is still in the cooling off period. I'm such an idiot Im doing everything wrong at the minute. If I call and reinstate the policy do you think that would mean I dont ruin my record?

Quentin

Yes.

Worth grovelling if they will reinstate it for you! (But make sure they reinstate, not sell you a brand new policy)