Car Insurance Cancelled, urgent advise needed

Austinhead

I have just had a phone call from Budget informing them that I owe them £131 payable immediately. Apparently this is due to a lasped payment (1 month), an additional charge of £20 for not sending a form back, and a massive £75 early cancellation charge.

I was aware that I had missed a payment, but was not aware of the impending cancellation. Infact I was only informed of the additional £20 charge 2 days before the policy was cancelled - or should I say the letter is dated 2 days before. The letter simply said that this charge would be added to the next direct debit payment.

So, now I have no car insurance, and do not have £131 to pay them. I need to arrange some insurance immediately as I need to pick up my youngest in 30mins.

Having just run through some quotes, they ask if you have ever had insurance cancelled - which now I have !!. This nearly doubled the price of the insurance. I am assuming that I need to say yes to this now ?.

Any idea's of what, if anything, I can do. The woman on the phone just kept harping on about terms and conditions. Unfortunately I ended up putting the phone down.

InsideInsurance

You will need to answer the question yes as you've had your insurance cancelled for non-payment and it will result in a large increase in all your insurances and with most insurers the increase is permanent

The key is to get the decision to cancel the policy reversed and the old policy reinstated. Why did you miss the payment? What did you do about making up the payment? Did you speak to them at all about it before today or the letters?

Austinhead

I tried to get it reinstated. She would budge, the only option was to pay half of the £75, plus the other charges and then they would requote for a new policy !

I'm struggling financially, and this has happened on the odd occasion, but i've always just gone online and made the payment manually. This has been a total mess, they auto renewed when I didn't request it, so the policy has only just started. I could have got cheaper elsewhere, but I accept I should have contacted them earlier.

I have been away on a long weekend and was aware I needed to sort it out when I got back i.e. today, but didn't know it had been cancelled until the phone call !!

InsideInsurance

Unfortunately they hold all the cards in this game and you are really down to their mercy.

Evidently you arent a new customer so you can try the loyality/ previous good track record card but as it is a national broker that you bought through their hands may also be somewhat tied by what the insurers allow them to do and they arent the sorts of organisations that really will fight your corner with the insurer.

When was the payment actually due?

forgotmyname

You need to get back to them and grovel, In letter if you cannot do it over the phone.

If they recorded the fact they cancelled your policy for non payment, You may have to declare that forever. Which wont help your premiums.

Austinhead

I need to find the original letter as i haven't actually made any payments towards this renewal. I know someone else who this happened to, and he got away with it as the original letter states that if payments are missed, then the insurance will be cancelled - which in his case he did on purpose as he did not want the renewal. I'm going to try this angle.

I have arranged alternative insurance, but as you say, the premium is much higher and there is no time limit on that question, like there is on the others (seems v.unfair !!)