Renewal cancellation.

paddedjohn

The Wife's car insurance runs out on the 25th and LV have today sent us new documents to run from that date, these weren't asked for as we are looking at moving to another provider but the policy states that they will charge £20 to cancel. Am I right in thinking that as long as we inform them were moving by the 25th then they can't charge anything as the policy won't have started.

lisyloo

but the policy states that they will charge £20 to cancel

There are two different concepts here and it's important not to confuse call center operatives.
Cancelling happens after the policy has started and the insurer is entitled to charge a fee.
I believe you mean you want to LAPSE this policy i.e. not renew it and there is no charge for this.
If you call up and say you want to cancel there is a danger of the current policy being cancelled.

Ring up (or write or email) and say you want to lapse or say you do not wish the policy to be renewed.
Unfortunately some companies are cycnical and may say they never recieved your phone call. There are several methods to stop them doing this.
1) Get an acknowledgement in writing.
2) Write a letter and spend 75p on proof of delivery
3) Write a letter and get a free proof of posting (does not prove delivery).
4) Send an email and get delivery/read receipts
5) Record the persons name, date and time so that you can for recordings to be retrieved (these are not guaranteed to be avaialble 100% of the time).

paddedjohn

I know I can let the old policy lapse but they hav already sent the new policy and it's this that states the £20 cancellation fee.

Quentin

That fee will only apply during the 'life' of the policy.

It hasn't started yet!

DCFC79

Quentin wrote: »

That fee will only apply during the 'life' of the policy.

It hasn't started yet!

This, when Im sent new docs/renewal its for the next years worth of insurance.

paddedjohn

Thanks all, we would have stayed with LV but M&S are quoting nearly £100 cheaper for a like for like policy.