Direct Line policy cancellation - claim made but not my fault

paddyk

Hi,
I had cancelled monthly paid car insurance policy with Direct Line after 9 months. They want me to pay remaining premium (275 quid) because a claim has been maid in the period of insurance cover. I understand that it's stated in policy T&C, but that accident was other driver's fault and the claim was settled - no my fault at all and I didn't loose any no claim discount. Even on the NCD document I got from them it says 'No claims made'. Is it fair for them to claim remaining premium amount from me if that claim wasn't my fault? Cheers.

Quentin

Write and ask them why they now are saying this claim is a "fault claim" and take it from their reply.

("Fault" meaning they haven't been reimbursed their outlay for your repairs, not "blame")

paddyk

Thanks for your reply.
They're not saying it's claim fault. Here what's in the letter:
"As a claim has been made in the current period of insurance cover, the balance of the full year's premium is now due, as stated in the policy T&C"

forgotmyname

I thought it was payable in full with any claim. Even if you were deemed not at fault?

paddyk

So I will have to pay remaining premium anyway? Is there any point of sending Direct Line a letter? It's not fair as DL didn't have any costs involved in my claim except paperwork and one phonecall...:mad:

vaio

forgotmyname wrote: »

I thought it was payable in full with any claim. Even if you were deemed not at fault?

Doesn't sound "fair" to me so worth a complaint and if they don't play ball refer to the FOS

dunstonh

It is normal for a policy not to refund where a claim has been made in the policy year.

vaio

Does "normal" = "fair"?

Particularly when the claim was non fault? I'm not sure hence the complain/refer suggestion

dunstonh

Does "normal" = "fair"?

In this case, I think yes.

You pay for a policy to provide you cover for a period of 12 months should an event happen on day 1 or day 365. It is not a pay as you go contract. The insurer prices the risk over 12 months.

vaio

Yep, I agree, you pay for twelve months cover and if you no longer need the cover then you can cancel and should get a refund

lisyloo

Disagreement from the experts here.
So I'd - spend a little time checking the FOS side for guidance/test cases, if there is none then raise a formal complaint with Direct Line which can then be esclated to the FOS later.
I don't hold a view but if the residents experts disagree then it's worth resolving if there is no guidance/test case already.