Hasting Direct - Concerns about a total costs of car insurance policy cancellation.

Atiseus

Hi everyone.

I have some concerns about a cancellation costs. Can someone help me to understand? I think that I have payed too much..

The renewal day was 18th December 2016.

I received an email from Hastings Direct with confirmation and additional information about payment plan:
"The first payment of 57,81 will be taken from your account at 18th December 2016, fallowed by 10 monthly installments of 57,81 each payable on the 4th of the each month or within 3 working days".

I sold a car in New Year day and on 3rd January I did cancellation of my policy by phone. I've been told that the cancellation fee is 45 pounds. But if I'll keep an installment of 57,81 pounds on my account which is payable by Direct Debit on 4th January, then I'll need to pay only 2,19 pounds of cancellation fee.

Now by my understanding:

First payment of 57,81 pounds been taken on 18/12/2016 (renewal day)
The cancellation fee of 2,19 was made on 03/01/2017
Next installment od 57,81 was taken on 04/01/2017


MY QUESTION IS: Is that normal procedure that they can take next installment on 04/01/2017 if I will not use whole that period.

I haven't any issue with them before. The service was always good but I think that there is something calculated in wrong way and I have payed too much.
I should only pay for what I have used. Am I right?

If someone can help me understand it, please?

Regards!

Quentin

Get them to itemise all the charges they are asking for then take it from their reply.

Hastings_Direct_company_representative

Hi Atiseus,

Thanks for posting your query and being with us as a customer.

To help clarify, a Direct Debit instalment mandate is not like a pay as you go scheme and neither does it pay up front for the month ahead. Rather, when you buy insurance on a credit basis, we pay the insurer the full amount less your first payment for you and you agree to repay the amount spread across 11 months. The first DD usually defaults to 14 days after the inception date so your situation although a little unfortunate to cancel so early, is normal.

When you cancel, we work out the days on cover you've had and the amount needed to pay for it so then any left over is due or paid back whichever is appropriate. I hope this helps but give us a call if you do need more help.

Regards,

Joe

Atiseus

Hi All

Joe, thank you for help and clarifying|!

Best regards,

Atiseus