Broker telling me to keep on paying DD

Emmawillow

Hi there, I wondered if anyone might be in the same situation and might have a bit of advice.
My Home Insurance company (part of Gable Insurance AG) went into liquidation and I had to arrange new cover from 16th December 2016 which I did.

I was paying for my previous Home Insurance monthly and am about half way through the year so was going to cancel the direct debit. However my broker (Policyshop) is telling me I need to keep the direct debit going and pay all the rest of the premiums until it ends in June 2017 because I owe them the money.

They have told me to put a compensation claim in through FSCS which I have tried but the FSCS website says they aren't currently taking claims for Gable Insurance.

So what is the worst that can happen if I cancel my DD? I understand Policyshop want to get the money from me that they have paid out for the policy (and they said lots of people have indeed cancelled theirs but their advice is not to).
Thanks in advance

paddyandstumpy

Policyshop (who are a Broker) will have paid Gable for your policy and your debt is with them or a finance company if they use one.

Just because Gable went bust doesn't get you out of what you owe the Broker.

They are correct in saying you owe and need to claim it back from the FSCS at a later stage.