Car insurance premium change

confused61_2

Hello everybody,
I commenced car insurance in July 2007 and discovered in August that the company had never taken the monthly debit from my account and my policy had been cancelled.
The company re-instated my insurance and then advised me that it was an extra £35 a month due to an address change.

The policy was re-instated eight days ago, and I've since contacted them to cancel the policy, however they want to charge me £50 to cancel it, even though they've never actually taken any money for the policy.

The company (Norwich Union) used to have a 14 day cool off period for new policies, however they have told me now that they have removed that now and no longer offer it.
They also said since this was a policy re-instatement that it wouldn't be applicable.

I called them after they re-instated the policy and told them I was not happy about the extra £35 a month (especially after finding alternate quotes for £35 less!!!).
They have said that they will refer the matter to a debt collection agency if I don't pay the money.

Any help or advice anyone could give me would be appreciated - I've had a look on the internet about policies and cooling off periods but nothing seems to be straight cut about this case,

Thanks,

Janine

raskazz

Firstly, why was your policy actually cancelled in the first instance?

Secondly, if it is a genuine reinstatement and not a new policy then the 14-day cooling-off period is no longer available to you. It only applies for 14 days after the commencement of cover or the receipt of policy documents.

The cancellation fee will stand whether or not they have colllected any payments so far - you promised to pay the relevant premium and accepted the relevant cancellation rates when you set up the policy.

If I understand your post correctly you got quotes for £35 per month less. Why not just set that policy up as you will have saved enough to cover the cancellation fee in 2 months?

MarkyMarkD

Your policy shouldn't have been cancelled without you being given advance notice in writing.

The fact that you are talking about address changes makes me suspicious that you have moved house immediately after taking out the policy without telling the insurer, hence you not getting their correspondence.

Given that YOU asked them to reinstate the policy, they should have told you there and then that it was an extra £35 a month due to your house move. If they did, and you still asked them to reinstate, IMHO you are not eligible for cancellation without penalty.