Churchill Car Insurance

jsrose

Hi. In November I paid for my car insurance in full by debit card! Yesterday, out of the blue I received a refund into my bank from Churchill. When I called them to find out what the refund was for they told me they had cancelled my policy because I hadn't paid for the 'optional' break down cover which is part of the policy!!

I am in shock that they would do this!!! The breakdown cover is £39 and I decided not to go with them and had paid nearly £500 yet they cancelled my policy, refunded the money and won't re-instate it.

I have been with them for 2 years and have not had this before. Has anyone else had this?

dacouch

Did they send you a letter advising you they would cancel?

Do they have your current address?

jsrose

They said they did but I got nothing. They had my number and email address but did not call.

Quentin

Getting a policy cancelled like this is bad news - a cancelled policy remains on your record for ever and has to be disclosed when applying for quotes for insurance (motor/house etc).


As you paid in full originally and got no notice of the cancellation you look to have grounds for complaint.


Follow their complaints procedure which will be set out in the policy docs. If you are unhappy with their reply (or they ignore you for 8 weeks) then you can escalate this to the FOS for their adjudication at no cost to you.


In the meantime ensure any new insurer you go with is aware of the cancellation.

jsrose

I thought I would update. Well ... I wrote to to Financial Ombusdsman and today they called me to say that Churchill have admitted wrong doing. They wanted to reinstate my policy but I explained that I'd had to get insured elsewhere and they would pay me 'distress' compensation of £150. They have also amended their credit files and therefore I don't need to say I've had a policy cancelled. Really pleased I got them involved. Thanks

Aretnap

Great result and thanks for letting us know.

I suggest you keep the letter advising you that the cancellation has been reversed in a safe place, just on the off chance that the update to your record doesn't go smoothly and it becomes an issue in future. (Not suggesting that this is a big risk, but there is no harm in wearing both belt and braces).