No claims discount refusal! Help!

bouncydog1

I don't think the original poster's insurance is with One Call - this info was given by abother poster in response to the original answer on NCB and debt collection...

OP - your boyfriend needs to urgently contact his original insurers and ask for a breakdown of the cancellation charges - read in conjunction with the policy wording. If there were add on's to the policy then he will have to pay the whole year's premium for these as often they cannot be cancelled mid term - you will probably find the amount quoted is a combination of short period premium outstanding, cancellation fee and add on's. However he is entitled to a breakdown of the charges. He will have to pay up or negotiate because the original insurers won't release the NCB without payment and the second insurers will not allow bonus without proof. Expensive lesson to learn..

dunstonh

£500 is the cancellation fee!

No it is not. No insurer has a cancellation fee that high. The typical maximum is around £50.

The £500 will be made up of a cancellation fee, cost of non-refundable add ons, premium outstanding to the next cancellation point and any arrears in premiums (as the direct debit isnt always in line with the period of cover).

Its a heck of a mess your boyfriend has got himself into. Unless you get it resolved soon (by paying them the money, or ideally getting the new insurer to cancel theirs and the old one to reinstate) they will lodge the default on his credit file and go for a CCJ against him. Therefore destroying his ability to get credit for many years (that includes mortgages)