Car Insurance Direct Debit mistake!

megaman777

Hi everyone,

I renewed my car insurance at the end of April this year, and didn't think at the time to add my wife as a second driver.

So, I recontacted them 5 days later to add her. Doing so wasn't a problem, however it meant an annual increase of £104 to the policy, which coupled with a £25 policy change admin fee equated to an extra £129 on the premium.

As I pay by direct debit, I simply asked for the additional amount to be added to be broken down and added to my 10 monthly payments, which would have resulted in an increase of approx £15 per month (inclusive of direct debit interest).

The rest should have been history...until yesterday when I received an email from insurance company telling me that the additional £129 was never added to my direct debit. With only two remaining monthly payments, they are now asking for £129 per month! an increase on my monthly payment of £70 a month!!

I appreciate it's that high to balance out the remaining payment, however, the issue I have is that in this day and age, I can't afford such an increase on my monthly outgoings.

I also realise that I have to pay the outstanding sum for the last 8 months insurance, but what rights do I have in terms of their demands for payment? I've tried to request some flexibility but been met with resistance.

This is after all their mistake for which I'm being penalised.

ANy experiences or views would really be appreciated.

TSx

The problem is that regardless of them making a mistake, you also have a responibility to check your statements. I would suggest a written complaint explaining you don't dispute the amount but will not be able to pay it off immediately, could they spread the payments over a longer period?

Bear in mind though there is a good chance they won't provide proof of NCD without the policy being paid up, which could cause you further problems.

dunstonh

I can't afford such an increase on my monthly outgoings.

Why not? You surely allocated the money and all that has happened is that they havent taken it. So, it should be sitting in your account.

I also realise that I have to pay the outstanding sum for the last 8 months insurance, but what rights do I have in terms of their demands for payment?

Quite limited as you have actually benefited from the payment not being made. If you want to play chicken with them then they can decide to cancel the policy due to non payment and that can be more damaging to you.

This is after all their mistake for which I'm being penalised.

It is a surprisingly common mistake. However, you cannot realistically tell us you didn't know. Were you just hoping they hadnt spotted the mistake and would get away with it when you saw the lower amount each month?

megaman777

dunstonh wrote: »

Why not? You surely allocated the money and all that has happened is that they havent taken it. So, it should be sitting in your account.



Quite limited as you have actually benefited from the payment not being made. If you want to play chicken with them then they can decide to cancel the policy due to non payment and that can be more damaging to you.



It is a surprisingly common mistake. However, you cannot realistically tell us you didn't know. Were you just hoping they hadnt spotted the mistake and would get away with it when you saw the lower amount each month?

First of all, no I don't have a monthly allocation, so no the funds aren't available.

The issue of paying the oustanding amount isn't in question. I accept that I have had 'use' of their service for the last 8 months and therefore have to pay for that. The advice I am after is whether I have any rights in terms of requesting fair repayment periods etc.

Finally, you're quite wrong actually, I didn't know and had no reason to check. Perhaps my mistake for not checking my bank statements (which by the way are quarterly), but when a company tells you an additional payment will be added, it's something you take at face value.

megaman777

TSx wrote: »

The problem is that regardless of them making a mistake, you also have a responibility to check your statements. I would suggest a written complaint explaining you don't dispute the amount but will not be able to pay it off immediately, could they spread the payments over a longer period?

Bear in mind though there is a good chance they won't provide proof of NCD without the policy being paid up, which could cause you further problems.

Thanks for the reply, I'll see if they can maybe extend the payments by the last 2 months of the policy period, that would at least halve the remaining payments.

dunstonh

First of all, no I don't have a monthly allocation, so no the funds aren't available.

So, despite seeing the amount being smaller each month than you expected, you spent the money?

Finally, you're quite wrong actually, I didn't know and had no reason to check. Perhaps my mistake for not checking my bank statements (which by the way are quarterly), but when a company tells you an additional payment will be added, it's something you take at face value.

ahh. So,thats why. You failed to control and reconcile your finances and spending and made no effort to see what was going in and out of your account.

No perhaps about it. You made a mistake. Just as the insurer did.