I hate insurance companies

pharoslizzy

My house/contents insurance was due for renewal in November. The existing broker, Castle Cover of Poole, Dorset sent a quote for the following year which was too expensive. The week before renewal date I went on holiday, I tried to get in touch with them to say I wouldn't be renewing but their office was unmanned so I cancelled my direct debit and bought my insurance online through Saga.

Castle Cover is now trying to charge me a £32 cancellation charge. I have not signed or agreed to any cover with them for 2011/2012. Anybody any thoughts, the last letter was threatening legal action!!!

Tremour-88

Usually insurance auto renews unless you contact them to tell them otherwise, you may be able to get it waived if you say you tried to call but they weren't there + the fact that it was the 1st payment you never actually started your new insurance agreement

InsideInsurance

You agreed when you took out the first policy that they would renew you automatically unless you contacted them to tell them otherwise.

The fact you cancel a direct debit never is a way to tell an organisation that you no longer want them. Would you accept your employers failing to pay you at the end of the month as the way of telling you that you were sacked from the start of the last month?

If you can prove to them that you both (1) tried to contact them during their publicised office hours and (2) have insurance else where they may waive the fee as a gesture of goodwill.

Parking_Trouble

Unfortunately we the consumer typically have to learn the hard way. We take out insurance because we have to and we often choose it on price and headline benefits without reading all the small print. With retail insurance products we are bound by non-negotiated contracts which we are expected to read, understand and comply with, to the letter. Most people don't read the detail and understand what they have signed up to.

It seems to be common practice for insurers to auto-renew. There are benefits for the consumer - no break in cover but it also helps the insurer retain the lazier customers, sneak in an increase and expose customers to lucrative cancellation fees.

Cancelling the DD is a bit of a blunt instrument. It's within the consumers rights to cancel the DD but you have to pay for any services you have had the benefit of. http://www.thesmartwaytopay.co.uk/DirectDebitExplained/Pages/CancellingDirectDebit.aspx Depends whether the policy actually renewed or not - presumably not if no payment received?

I would expect the insurer to take it on the chin and waive the fee. Maybe look for other ways to inform the insurer next time - an email or letter perhaps.
I am sure you won't allow this to happen again which come back to learning the hard or inconvenient way ;-)

olly300

pharoslizzy wrote: »

Castle Cover is now trying to charge me a £32 cancellation charge. I have not signed or agreed to any cover with them for 2011/2012. Anybody any thoughts, the last letter was threatening legal action!!!

Did you write a letter to the company and state you didn't want to renew when you couldn't get through to them on the phone?

If you didn't then pay the £32 as even sending a scrawl of a cancellation letter by second class post to them would have been enough for you to get them off your back.

ACG

Send them a copy of your phone bill showing you tried to contact them.

Parking_Trouble

ACG wrote: »

Send them a copy of your phone bill showing you tried to contact them.

Depends if the call got answered (by answer machine) or not.

ACG

to a large company it rarely just rings. There would be some music or automated sstem usually.