Direct Line - How to Avoid cancellation cost

Sea_Dive_Snow

Bit of advice to avoid the £47.50 cancellation charge if your with Direct Line and want to cancel insurance policy within 3 months of it due to expire.

So i sold my car and wanted to cancel my policy, i paid a year up front and there was just under 3 months remaining so i thought id get a nice bit of cash back. However when i called the guy said id have to pay a £47.50 cancellation charge! Seeing as id only get £20 back after this i asked if i could just keep the policy so i can keep years no claims. He said as i didn't have the car anymore i couldn't keep insurance but i could suspend it and then cancel at renewal. When he looked in to it properly he found out that if you suspend between 28 days and 3 months before the end of your policy then you actually will end up getting a full refund plus your years no claims as long as you don't mind waiting for the refund!

So now i have an extra years no claims plus my full £70 refund that i was due but did have to wait nearly 3 months for it, but for an extra £50 think it was worth it!

Thought I'd share the advice, as it is not advertised and the guy thought it was either refund or no claims, but turns out as long as your in this time period its both!

rs65

From the policy

5d. Suspensions
You can suspend this policy at any time by telling us either over the phone or in writing. Please return the certificate of motor insurance.
• If you suspend cover we will retain any premium paid. If you are paying by instalments, you must continue paying instalments during the period of suspension.
• If cover is suspended for 28 days or more in a row or if the policy expiry date passes during the period of suspension, we will refund you a portion of your premium for the suspension period. If cover is suspended for 27 days or less in a row and reinstated before the policy expiry date we will not refund any premium.
We will not refund any premium if you have made a claim or if one
has been made against you during the period of cover.