Insurance help please - cancelled policy

cheznal

Hi

Just wondering if anyone can help. I had an insurance policy for my buildings and contents for the last year (Dec 1st 2011 - Nov 30th 2012) but I got a cheaper quote from another insurer and insured with them from December this year.

Unfortunately, I forgot to cancel the insurance policy with the other company (1st of Dec was a Saturday and they closed at 1pm, and it was after this that I realised) so I rang them on the Tuesday when I had access to a phone. I informed them that I no longer required the insurance, and the snotty woman on the other end of the phone told me that she needed to see the documents for the new insurance before cancelling and that I would be charged £25.00 for cancelling the insurance even though it was within 14 days. She told me that they had tried to ring me, but I was at work during the week when they rang me and I am not allowed to answer my phone - to which she just tutted at me. I said the new quote I got was so much cheaper (£25.00 per month cheaper in fact) than what they were charging me, and she said 'Well we did have a cheaper quote for you if you'd bothered to answer your phone!' - so basically they had a cheaper quote but because I couldn't get to the phone and they were closed when I got home from work to call them, they stuck me on a higher quote!

Today, I received a letter off them saying that I owe them £96.40 and they have passed my file onto a debt collector to get the money off me and have been charged £25.00 on top of this £96.40.

I'm absolutely seething. I have no idea where they get £96.40 from, I cancelled the insurance 4 days after the policy started on 1st December, and I've also been right through the documents they sent me and there is nothing to say that I have to pay £25.00 to cancel the policy. Now I'm going to have debt collection hanging over me for something that I don't believe I owe. I've struggled for years to clear my credit score and now this. I'm raging. However, I don't know anything about insurance, or what I am supposed to be paying etc so don't know if I have a leg to stand on.

Can anyone please help or advise?

Thanks

Chez x

forgotmyname

It is better to pay them, Then write a FORMAL COMPLAINT letter and send that recorded delivery.

Asking for a breakdown of the charges. It wont affect your credit score if you pay it.

They cant pass a bill onto a debt collection agency if they have not even given you chance to pay it.

There should be a figure in the terms and conditions of the policy for cancellations and any changes mid-term.

Sit down with a hot cuppa and a packet of biscuits and have a good read.

Set you alarm to wake you every 1/2 hour it maybe boring.

You may need to prove you were already covered. What did the renewal say?

dunstonh

I informed them that I no longer required the insurance, and the snotty woman on the other end of the phone told me that she needed to see the documents for the new insurance before cancelling and that I would be charged £25.00 for cancelling the insurance even though it was within 14 days.

She is correct. For an insurer to do a refund or void a policy under dual insurance then they need to see proof you were dual insured. That is quite normal.

The cancellation rights period does not mean you cannot be charged. They can charge you for days on cover and an administration fee.

I'm absolutely seething. I have no idea where they get £96.40 from, I cancelled the insurance 4 days after the policy started on 1st December, and I've also been right through the documents they sent me and there is nothing to say that I have to pay £25.00 to cancel the policy.

Did you send them proof of your alternative insurer to allow them to process it as a dual insurance case? If you did then you can have a go at them. If you didnt then this is what happens when you dont do what is asked.

This is an easily resolved situation but you need to do what is asked. Technically you do owe them the money as you failed to cancel it. However, they will usually refund as long as they have proof you insured elsewhere. It is better to keep them onside when dealing with something like this. The root cause of the error was your failure to cancel. Its not all their fault. If you go in all guns blazing then the person you speak to will not likely be inclined to be overly helpful or show you much goodwill. If you supply them the docs they ask for quickly then you may get away with not having to pay them anything or just the admin fee and they will call the debt collection agency off (if they have even referred it to them yet)