Problem with Diamond - what to do?

comicmankev

Around Xmas time my (wifes) car insurance was up for renewal. We were away when it ran out (for about a week). When we got back we found a letter from Diamond saying that we were overdue and if we didnt pay the balance in full they would cancel her policy.

I took that oportunity to search for a new policy, and found one with Lloyds for over £100 cheaper, so went for that.

Diamond then wrote and said we owed £55 (approx) for the 10 days between the end of our last policy with them, and the new one with Lloyds. My wife has phoned multiple times and sent numerous letters asking for a breakdown as to why 10 days insurance would cost £55. We also addressed the fact that all of their letters said our policy would be cancelled if we did not pay, nowhere did it say they would charge. Please bear in mind that the full years policy was just over £200, so £55 for 10 days seems a lot.

Anyway, they have now passed this matter on to a collection agency, added another £15 on the bill, and they both say we have made no attempt to contact them! I have copies of all correspondence, and have posted this to both parties twice, and now they say it will go to court if we do not pay in 7 days.

Do we have to pay then argue? Or is there any other suggestions out there?

Paul_Varjak

I thought that the payment of an insurance premium for oney year meant just that - not an agreement to pay a further year unless you told them you wished to cancel.

If you are sure there is no agreement to pay the money they ask for I would write to them and the Collection Agency (recorded delivery) saying that you do not accept that you owe any money.

Because they have written notification that you dispute any money is owed The Collection Agency would not be allowed to visit you to collect any money.

The only option would then be for the insurer to take you to court but I hardly think they would do that for £55!

Bossyboots

I did not renew my insurance with Corinthian and just got a letter from the broker confirming the date on which it had lapsed. I had not told them what I was doing, I simply did not renew it and went with another insurer.

I have just read the policy booklet for Diamond. If you look at page 22 there is some info on renewing. It looks as though they expect you to actually notify them that you do not wish to renew, otherwise they will continue to take payment. They ask that you return your current certificate of insurance and prove you have alternative insurance!!!. It also states that if you cancel "charges on the back of your current certificate of insurance will apply".

It seems to me therefore that they consider the procedure to be that unless you tell them differently, the renewal goes ahead. The costs stated by them are presumably those I have mentioned. I think their definition of cancelling means that they had in fact insured her for the 10 days but as she did not pay, they are entitled to recover the premium for that time together with the costs involved.

It is surely commonly accepted that your car insurance is for a set term and unless you agree to it continuing then it simply stops on the date of expiry. I think the OP should notify Diamond that they were never asked to renew the policy and therefore there is no money to pay. I don't think they would stand a hope of getting a Court order unless there is paperwork somewhere else along the line that states the policy remains in force until cancelled, rather than expiring at a set point.

It seems to me that Diamond are playing with semantics in their policy document and in particular their definition of "policy" which seems to be out of keeping with the norm. At no point was I asked to confirm to my old insurers that I had alternative cover and I would have told them it was none of their business if they had asked.

Baz-Bee

Even if they did try to rely upon the wording in the Policy Booklet T&C's any court I am sure would throw it out on the basis of The Unfair Contract Terms Act 1977 and Unfair Terms in Consumer Contracts Regulations 1999.

The Dti publish fact sheets with info. I suggst you look at the one on the 1999 Regs at:

http://www.dti.gov.uk/ccp/topics1/facts/untermsact1999.htm

which gives good advice and would appear to cover your circumstances.

For info the 1977 Act fact sheet can be found here:
http://www.dti.gov.uk/ccp/topics1/facts/unfairact1977.htm




I would send a Recorded Letter to them enclosing further copies of all proir correspondence and suggest that unless they forthwith stop hassling you, you will see them in Court and let the Judge decide who is correct. I would also mention that you consider their standardT&C's are in breach of the 1999 Regs. IMO you have no chance of losingbased upon the info in the fact sheet.

Luis

Surely they have no right to try and charge you for 10 days in which you chose not to be insured with them? The 10 days was for the time in between Diamond and the new insurer, when your car was off the road as you were away.

In my experience, Diamond will squeeze blood out of a stone - they charge for anything and everything, when I moved house they charged an admin fee, when I changed my name they charged an admin fee, to take my ex-husband off the policy.....you get the point.

MarkyMarkD

Churchill charged us for one or two days' cover (IIRC) taking advantage of a similar clause in their Ts & Cs and despite us already having cover with another insurer from the renewal date. I was fairly put out by this but they didn't treat it as a short term policy cancellation and levy onerous charges, so I left it.

comicmankev

We finally got a reply today with no detail whatsoever apart from a breakdown of the costs: £5 for 10 days cover and £45 cancellation fee!!!!!!!!!!!!!!!!!!!!

This is getting beyond a joke now, any more suggestions? I will read through the DTI stuff and see what that says.

On a variant, if I did say to the 'I'll see you in court' would this effect our/her credit rating as an unpaid bill?

comicmankev

And replying to MarkyMarkD - Diamond are part of Churchill, so I guess they do this across the board!

comicmankev

Something I just remembered - On the phone to Diamond yesterday my wife asked where it details the £45 fee. The reply was "only on the back of your cover notice" which is what we were asked to destory immediately as we were not continuing insuring with them! Apparently this fee is not noted in their normal T&C booklet?

thegoon

Diamond are acutally a part of Admiral, if your car was insured with someone else then you had cover and didnt want the cover with diamond, thye should be able to backdate the cancellation. I cant remember the full cancellations % but i think the first month is about 20% of your premium. So it may be worth speaking to a manager there and get it cancelled PRO RATA. I know they do this as I used to work for them!! so if its prorata prob work out about £3 and they will then write it off. Not the best people to deal with , also if you could tell them you didnt renew because you are moving abroad. have a motor bike, have had a new 4.0 turbo engine fitted, these are things that they wont cover, and therefore will cancel it pro rata!

comicmankev

2 last things to note, first is I havnt got a clue what you just said thegoon, perhaps a little clarification?

And second, the person on the phone said that it does state on the back of the policy that they will charge £45 for cancellation. So I guess this gets them out from being misleading??? I would be happy if anyone insured with Diamond could check this on the back of their policy as they asked us to destroy our one as it was not in use!