Help for my girlfriend

johnc86

Hi. I am seeking help on behalf of my better half regarding her motor insurance policy. she is currently out of work and has decided to cancel her car insurance. She pay's £137 a month because of a silly mistake she made nearly 4 years ago when she was caught over the drink driving limit. She has learned her lesson and would never do it now. She was going through a lot of problems in her life at the time. She’s not proud of it and realises in hindsight how foolish it was and is grateful that she didn’t harm anyone.

She is now 25

Anyway.......... Aviva want £205 off her to stop her policy. This she has been told is to cover money paid on her behalf by Aviva and is to cover money lost in commission or something to this effect. I don’t really understand it. Included in the £205 also is the standard cancelation fee.

She is in her second year with them having renewed in October (unable to get a cheaper quote).

She has no money whatsoever so isn’t in a position to pay the money or to keep the policy on.

Any advice on the matter would be greatly appreciated.

Thanks a lot.

McKneff

The monthly payment is irrelevant to be honest. She entered into a financial agreement to pay XX amount for the year.

I understand about the commission and the cancellation fee. There may also be an admin fee.

Does she have anything else added on to it ie Legal, or breakdown, unfortunately these have to be paid for in full for the year.

Tell her to get a breakdown in writing of the charge involved and then come back on here for advice.

boyse7en

They way i understand it - your GF has bought a years insurance from Aviva. They then arrange a loan for her which she is paying off in monthly installments.

The £205 will include a 'penalty' for the early repayment of the loan

Tetley_the_Cat

I'm not so sure the above is true exactly. What happens is that they give a quote and you can pay upfront for the year or spread the payments. If the payments are spread they charge interest on it and this has to be paid a month in advance. So technically as they add a premium you are paying for insurance on a monthly basis.

I would ask the Ins co what the effect is if you "lapse" the policy and see their response to that.

I cannot see they are justified in charging that amount as you will not have been on risk for the full term. The Consumer Action Group Web site forum has a good section on insurance under the transport section/motoring.

Sgt_Pepper_2

And what happens if yet stop the DD?

Quentin

Tetley_the_Cat wrote: »

...........I would ask the Ins co what the effect is if you "lapse" the policy and see their response to that.....

THis won't help at all!

If she lets the policy "lapse", then she will still have to pay it up for the whole year!

(A policy "lapses" when it reaches the end of its 12 month period, and the policyholder no longer wants it to be renewed)

Tetley_the_Cat

It also applies if she should suspend it which is perhaps what I meant. If this is done she is not on risk but the policy is live.

Tetley_the_Cat

Sgt_Pepper wrote: »

And what happens if yet stop the DD?

They normally cancel the policy and try to persuit. They cannot persue for something you have not had!

Quentin

Tetley_the_Cat wrote: »

It also applies if she should suspend it which is perhaps what I meant. If this is done she is not on risk but the policy is live.

Well.....if you "suspend" your policy, it still has to be paid for!

Then at the end of the "suspension" (depending how long it has been suspended) you may get a premium refund in respect of the suspended period.

Though continuous insurance requirements mean that you must SORN the car, (and then hope it doesn't get stolen/catch fire etc whilst no insurance cover is in place!)

Quentin

Sgt_Pepper wrote: »

And what happens if yet stop the DD?

They would cancel the policy (as well as chase you for the money).

So she would have the loading for drink driving PLUS a cancelled policy on her record, making future insurance cover pretty difficult to get, and very expensive if anyone can be found to provide cover.

eslick

cancelling any policy now comes with a fee its in the small print