Is simply cancelling the DD enough to cancel insurance..?

simmed

I bought a mobile phone about 10 months ago, have been paying insurance monthly (£6), don't want it any more, cancelled the direct debit.

Is that all or do I need to phone them up and officially say I have cancelled?

keith1950

Hi, I am sure someone will come along and tell you that you should always either write or ring to give notice of cancellation but I have always just cancelled the direct debit and have never had any problems.

Jpoku

simmed wrote: »

I bought a mobile phone about 10 months ago, have been paying insurance monthly (£6), don't want it any more, cancelled the direct debit.

Is that all or do I need to phone them up and officially say I have cancelled?

I would phone and let them know anyway. It doesn't take that long and can save you having to deal with a customer rep demanding to know what's going on .

erdd2

I wouldn't bother as you do not want the service....insurers do not like to pay out on claims but do like to collect premiums...be prepared for them notifying you you have cancelled and seek you reinstate

dunstonh

cancelling a direct debit does not cancel the contract. It just cancels the payment method and allows them to come after you for the payments by other means.

lou-28_2

I was wondering this too as I cancelled a direct debit today for PPI on our mortgage (we have a new one in place) but I've just e-mailed them to let them know too just to be on the safe side.

DCFC79

You should notify them, seriously did you really not know the answer

InsideInsurance

Simmed, what do you do for a living? If next payday you checked your bank account and there was no money paid in, you phoned your manager/ HR and they said "we cancelled your job immediately after last payday, we didn't tell you as we just cancelled the bank payment instructions and thought that would be enough".... would you think that cancelling payment instructions is sufficient to cancel a contract?

bouncydog1

You need to read the terms of the contact in case there is a minimum period for maintaining the cover.

If it allows you to cancel, it should also give instructions as to the process. Follow the process otherwise you leave yourself open to action by the Co to pursue for non-payment.

keith1950

Hi, with any other type of insurance such as car/buildings/contents etc. I completely agree that you should write or ring to inform the insurer that you are cancelling and not just cancel the direct debit.

However, with most mobile phone insurance I have had dealings with, the terms and conditions usually state that you can just cancel the direct debit.

Always read the terms and conditions 1st though.

Naf

Generally if you just cancel the DD for anything, the company will cancel your cover/service etc. The exception is where you have a minimum contracted period, in which case they will initially chase you for payment of one bill, then two, then will quite possibly chase you for the remaining period's premiums/payments as a 'cancellation fee'. Some contracts even allow for the originator to reinstate the DD without further permission from the customer and without notice. So watch out and check your terms.

If for no other reason than courtesy, it's usually best to contact them before you do it, or just after. These days they'll hear from your bank straight away that you've cancelled, they don't need to wait 'till a payment is refused any more.