Question about switching car insurance

queenanne

My question is a little silly but I had to get it straight.

When you pay monthly for car insurance, do you pay in advance or arrears?

I've just switched from Norwich Union to Quinn Direct. I was with Norwich for 2 years. When I started the policy, in Jan 05, I paid 2 months, then monthly from March. From that date to when I cancelled I never missed a payment. I always assumed I was paying in advance.

So I cancel at the end of the policy and they are demanding another months money out of me. I was with them for 24 months and paid 24 months.

Am I missing something here and owe them another month?

Astaroth

You are buying an annual contract. To release you from that contract a company is entitled to charge you a fee - as long as they are upfront about the fee then there is no cap (before the question is raised, it is different to bank charges as these are for breach of contract rather than early termination).

The fact you are paying monthly is a convenience thing and isnt related to paying in advance/ arrears as it would be on an open contract like your electricity supply or broadband

queenanne

Thanks, I see what you mean. The only fees that they told me about were charges if I left them before the year was up, which is why I stayed with them til the end of the contract.

I should have added that I have phoned them to ask what the payment was for and they said I'd missed a payment. I'm sure I would have had a letter from my bank if I had. I check my statement every month and I know I havn't. The guy even said I'd made 2 payments as a deposit then 10 more payments the first year and 12 the next, but still insisted I'd missed a payment. I'm by no means any type of financial expert, but I do know what I pay and when.

It's silly, but it's driving me nuts!

Unfortunately I only keep records for a year so I'm going to see my bank.

Astaroth

Sorry, I totally misread your question the first time round.

The insurer should be able to tell you which month you missed and then just get a copy of that statement from your bank/ print off from online (if it isnt too long ago)

queenanne

My mistake, should have worded it better.

I know they should be able to tell me, but when I asked which month I missed they couldn't!

I'm off to the bank tomorrow, see if I can sort this out.