Cancelling dealer gap insurance - in/out 30 days rights

Nasqueron

Quick question here:

I was sold Gap Insurance at £499 on my new car (it's on 0% finance so although the £499 is included in the finance, it doesn't accrue interest).

I realised through media and friends that this was poor value especially as my car insurance will give a new car for damage over 60% of total value of car in my first year (so basically paying £250 a year) and arranged a new policy through an online broker which allows the same cover for 3 years with one year deferred (so 4 years cover) for less than half the dealer price. The 30 day period allows a full refund of policy (assuming no claims), after that it's pro-rata.

The car was purchased (and got the policy documents) on 12-12-14.

I wrote to the dealer as the policy requested on 22nd December, sending first class (I have the proof of posting) and have heard nothing for the least 3 weeks (I appreciate it's about 9 working days, 11 if Saturday is included).

Today I sent the dealer a second letter requesting the policy be cancelled and refunded and sent one to the provider (they say you should only contact them if it's direct debit policy or over 30 days but felt I should anyway just in case) - these will be sent first class with delivery receipt/tracking to prove it arrived.

My queries are:
Willl the fact I sent the first letter on the 23rd (so should be there on 24th) be sufficient to eliminate any argument they could have about keeping some of the premium? As the letter would be there tomorrow (10th) it would be inside the 30 days anyway I think.

If they get funny about this, who would I escalate to? Formal complaint to dealer or FOS?

I don't really like arguing (hence doing it by letter not phone) and the salesman was a decent guy and didn't push any of their other insurance policies, just gave me the details and was able to arrange a suitable finance position but I do understand my rights and this is all about money saving!

InsideInsurance

The policy documents will advise you of what the cancellation process is. You need to follow that process.

Proof of posting to the dealer should be fine if there is an argument but only if the cancellation process says that you should write to the dealer. If it says cancellation should be done with the provider then you are on much weaker grounds.

If you have issues then follow the complaints process that again will be in the policy documents. If you exhaust that process and still arent happy you can then go to the FOS.

Nasqueron

InsideInsurance wrote: »

The policy documents will advise you of what the cancellation process is. You need to follow that process.

Proof of posting to the dealer should be fine if there is an argument but only if the cancellation process says that you should write to the dealer. If it says cancellation should be done with the provider then you are on much weaker grounds.

If you have issues then follow the complaints process that again will be in the policy documents. If you exhaust that process and still arent happy you can then go to the FOS.

Policy documents say essentially if you want to cancel within 30 days of the policy starting date / receipt of the terms and conditions (whichever is later) notify the supplying the dealer (which I did (and will have twice)) - only contact the administrator if over 30 days or paying by direct debit (which it's not and I'm not).

The issue is that I have had no acknowledgement from the dealer to cancel this so I worry they may have "lost" the letter or be ignoring it.

I lose essentially 2 months + £50 admin fee if outside the 30 days so the proof of posting was a good call!

The complaints process does say I can complain to the administrator (not the dealer), re-reading the form so that's fine, I can do that if the second letter doesn't sort the issue

Cheers

InsideInsurance

Nasqueron wrote: »

The issue is that I have had no acknowledgement from the dealer to cancel this so I worry they may have "lost" the letter or be ignoring it.

The law basically says that anything posted is considered received 2 working days later.

You can prove you posted something to them with your proof of posting and so its up to them to prove that either (a) they never received it which is basically impossible unless the PoP shows you used the wrong address or (b) that what you sent was something other than what you claim.

Civil law is only on the balance of probability and so unless you happened to also include something else in the letter then chances are good that you sent what you claimed.

It for reason (a) above that using a PoP rather than signed for or SD is always sensible as a company could refuse delivery of a special delivery item etc and thus be able to prove they never received it via the RM tracking.