admin fee for insurance I didn't ask for!

missis_amber

I had house insurance with Direct Line. They sent me a silly renewal price. I managed to get a better deal with another company. Thought it courteous to call Direct Line and say that 'I don't want to renew insurance with you, I am getting insurance from x company.'

Yesterday I get two letters from Direct Line. First one says 'thank you for renewing your Direct Line Home Insurance'. Second letter dated the same day says 'with reference to your cancellation...' and says I owe them '£26.50' administratio fee for cancelling my policy. But I told them that I didn't want it before it even STARTED!

Have to wait until morning to call them....but have I got something wrong or are they ok to charge me this??

mikey72

You don't owe them anything, but a lot of insurers will happily try it on.

missis_amber

The funny thing is that even the letter they sent me is dated BEFORE the start of the new policy...therefore that is proof that I cancelled it before. Am worried that I am going to go around in circles with them when I ring tomorrow. I've learnt my lesson with Direct Line - was already shocked at the fact that their renewal price was higher than what I paid last year, despite me making no claims!

McKneff

Try and remember when you rang them, they should hopefully have a recording of the call.

Don't worry..........

DCFC79

Just call them and check that its been cancelled, ive been with DL for a few years and not had a problem.

Buzby

Their T&C's state they renew up to a week before the anniversary date, and require notice of cancellation then. I sent them a letter after taking out the policy stating that I had not agreed to any ongoing commitment and no mandate existed between us for ongoing payments.

We'll see if they try it on!

mikey72

Buzby wrote: »

Their T&C's state they renew up to a week before the anniversary date, and require notice of cancellation then. I sent them a letter after taking out the policy stating that I had not agreed to any ongoing commitment and no mandate existed between us for ongoing payments.

We'll see if they try it on!

That would be a good one to advise the FSA of.

missis_amber

Just found this on their website:

Do I get a refund if I cancel my home policy?

a) When you buy your policy
If you cancel your policy before it is due to start we will return any premium you have paid in full. If you cancel your policy within 21 days of the day it is due to start or of the day on which you receive your documents (whichever is later) we will return any premium you have paid less an administration fee of £26.50 (inclusive of Insurance Premium Tax where applicable), providing you have not made any claims during that time.
If you cancel your policy after that 21 day period we will return any unused premium less an administration fee of £26.50 (inclusive of Insurance Premium Tax where applicable), providing you have not made a claim during the current period of insurance.
b) When you renew your policy
If you cancel your policy within 21 days of receiving your documents, or of the start date of the policy (whichever occurs later), we will refund the premium you have paid in full, providing that you have not made any claims during that time.
If you cancel your policy after that time we will refund any premium paid for the remaining period of insurance less an administration fee of £26.50 (including Insurance Premium Tax where applicable), providing that you have not made any claim during the current period of insurance.


So if my cover started on 29/08/2012 and I didn't receive my documents until 28/09/2012 when should I have rang them to cancel policy to ensure that I didn't incur the charge?