Car Insurance problem

kavery74

Hi my partner was until recently insured with Axa car insurance. At the beginning of Feb we cancelled the direct debit as I had found the insurance cheaper with another provider. We are now getting letters from Axa asking us to reinstate the direct debit even though we cancelled it and pay them £76. We didn't realise that the insurance was on an auto renewal can they do this? As they are saying they are going to take the money out of his bank account...

Pondering

These days insurance companies tend to grant you credit in order to help you pay for your insurance and as such I do believe that this would tie you into a minimum contract the wording of which will be included on your paperwork. Sadly ignorance of specific details is not an allowable defence under the law. Check what your contract stated. The days of standing your ground and insisting that you will not be bullied etc died a fair number of years ago.

garynuman

/\ This


They "lend" you the money and spread it over the 12 months to give you cover. It doesn't necessarily auto-renew.


If you have cancelled the direct debit they will want charge a termination fee usually equal to the remaining payments (as I understand it)

10pence

kavery74 wrote: »

Hi my partner was until recently insured with Axa car insurance. At the beginning of Feb we cancelled the direct debit as I had found the insurance cheaper with another provider. We are now getting letters from Axa asking us to reinstate the direct debit even though we cancelled it and pay them £76. We didn't realise that the insurance was on an auto renewal can they do this? As they are saying they are going to take the money out of his bank account...

Cancelling the direct debit (DD) doesn't mean you've cancelled the policy, you will need to follow the providers cancellation policy, for Aviva it's as follows;

• Motor insurance
  What happens if I take out cover and then change my mind?
  The principal policyholder has the right to cancel the policy within 14 days either from the day of purchase or renewal of the policy or the day on which the principal policyholder receives the policy or renewal documentation, whichever is the later. If the principal policyholder wishes to cancel and the insurance cover has not yet commenced, the principal policyholder will be entitled to a full refund of the premium paid.
  What are Aviva charges for policy amendment and cancellation?
  If you cancel after cover has commenced, you will be entitled to a refund of premium paid subject to a deduction for the time you have been covered, and there will be an additional cancellation charge of up to £38 subject to Insurance Premium Tax where applicable.
  If we cancel for non payment of any amount due, there will be a cancellation charge of up to £38 subject to Insurance Premium Tax where applicable.
  If you amend the policy, there will be an administration charge of up to £18 subject to Insurance Premium Tax where applicable. No charge is made if you amend the policy online at aviva.co.uk/myaviva. Online policy changes are currently only available if you are insuring a single car with us.
  To exercise your right to cancel your policy, please call 0844 891 1101*.

neas

Love posts like these. Great reminder to read the t+cs.

Fruit_and_Nut_Case

neas wrote: »

Love posts like these. Great reminder to read the t+cs.

Apparently the OP didn't read that this is the Credit Card Board either. Perhaps some kind person will move it.

kavery74

sorry new to forum