MSE News: Cancelled Direct Line car insurance? You could be due a refund

"Past and present Direct Line customers who've cancelled car insurance mid-term could be in line for a refund..."
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Cancelled Direct Line car insurance? You could be due a refund

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  • LadyDee
    LadyDee Forumite Posts: 4,293
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    edited 3 February 2014 at 1:17PM
    Wouldn't it be a nice gesture if those who have managed to struggle through the last 3 years without this £35, instructed DL to donate it to a cause such as Help for Heroes?

    Just saying ....
  • lisyloo
    lisyloo Forumite Posts: 29,350
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    Nice thought LadyDee :-)

    My elderly FIL got a refund in 2013 and I checked it was correct (he is elderly so I look after their finances).
    Personally I would have noticed if the amount was not correct and I'm suprised if any MSE's wouldn't have checked and noticed.
  • SamDude
    SamDude Forumite Posts: 349
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    My refund of £29.50(ish) went to my old address - I was able to get my post a couple of weeks ago, but as the letter was dated July 2013, the cheque bounced.

    I would suggest that anyone reading this now, that has moved address, check if the refund cheque hasn't already been issued to their old address.

    I've been in touch with Nationwide (and through the different companies involved - UK Insurance, Churchill...) and should be getting a re-issued check to my current address soon.

    The policy in question was for car insurance with Nationwide. They were offering 'double the difference' back against the cheapest/best quote.
    I'm sure I claimed £800/900 under the promotion and that was successfully paid before I cancelled the policy... :)
  • sithemadmonkey
    sithemadmonkey Forumite Posts: 221 Forumite
    That's odd - I got a refund off Direct Line due to this about a year ago (completely out of the blue, I hadn't instigated it). Not sure why letters are only getting to people now...
  • cruiser535
    cruiser535 Forumite Posts: 2 Newbie
    We've just cancelled with SAGA halfway through the policy as we've sold our car & been charged £50 !! for the privilege, which we feel is obscene for what can only amount to a few keyboard hits & maybe an admin charge of a fiver,we suggested that we may as well let the policy mature but were then informed that this was illegal, pure greed or what ? Next scandal !!
  • InsideInsurance
    InsideInsurance Forumite Posts: 22,460
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    Brand Partners?? Is this really one of the "brands"? Also looks a very short list of brands there. Would be odd if it impacted some of their partner brands like Egg but not RBS or Natwest or any of the other partner brands that share the same platform
  • InsideInsurance
    InsideInsurance Forumite Posts: 22,460
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    cruiser535 wrote: »
    We've just cancelled with SAGA halfway through the policy as we've sold our car & been charged £50 !! for the privilege, which we feel is obscene for what can only amount to a few keyboard hits & maybe an admin charge of a fiver,we suggested that we may as well let the policy mature but were then informed that this was illegal, pure greed or what ? Next scandal !!

    Its a cancellation charge not an admin charge. It is predominately to cover the cost of acquisition/ marketing and operational overheads

    A former client calculated the total average cost for a policy was around £125 for new business and £75 for renewals. The average cancellation was done after 3 months so assuming a linear earning pattern 75% of those costs are still outstanding at the point of cancellation.
  • Terry98
    Terry98 Forumite Posts: 1,155
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    I am just about to move house and have only a couple of months left on the house and car insurance.

    It will be cheaper to start new insurances because I am sure the cancellation charges on the old policy's will be more than the refund.

    Is there anything wrong in just leaving the old ones to run out?
  • InsideInsurance
    InsideInsurance Forumite Posts: 22,460
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    Why not just transfer the policies to the new address if its only a couple of months left? Probably cheaper than having double insurance.

    The problem is that an NCD can only be used on one policy at a time and so as they will still be in use on the old policies you'd have to buy the new ones with no NCD

    Secondly, if they find out they can void your policy and that'll push up your premiums for life
  • Terry98
    Terry98 Forumite Posts: 1,155
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    edited 6 February 2014 at 9:48PM
    Why not just transfer the policies to the new address if its only a couple of months left? Probably cheaper than having double insurance.

    I reckon it will cost over £50 to transfer the home/contents policy to my new address. A years new policy will cost under £100 with cashback (current insurers want over £150)

    I haven't checked for a new car quote but I am sure that would be similar to the house.

    Hadn't thought about the NCB so it looks like I will have no alternative but to cancel the old ones and pay the charges!
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