Home Insurance automatically renewed

wils1988

Hello,

My home insurance was automatically renewed with Admiral and for what ever reason when they tried to take the payment it did not go through so they sent a letter to me asking for the money to be paid within 14 days or it will be cancelled.

I thought I'd let them cancel as I could find cheaper quotes else where. So I've taken out a different home insurance and now the 14 days is up with Admiral they want £58.58 cancellation fee! Even thought they did not mention a cancellation fee in the first letter. I would have just stayed if Admiralor phoned them straight up if I knew their was a fee.

Any advice would be appreciated

csgohan4

so you didn't tell them to cancel the auto renewal?


What does it say in your T+C regarding this? and cancelling?

wils1988

No unfortunately I just assumed it would be OK to let them cancel it, I had no idea a cancellation fee would be due.

I'll have a good read through the T&C's when I get home.

Looking back now I should have just rung them and cancelled but £58.58 seems an awful lot, theyre renwal price was almost double the price of the recent home insurance I have taken out too.

Quentin

You now have a cancelled policy on your record (which is bad news - you do have to normally disclose this to any other insurers where you are either covered or are the policy holder)


Make sure your current insurers (home/car etc) are made aware of the cancellation (and do what you can to get it reversed!)

dunstonh

No unfortunately I just assumed it would be OK to let them cancel it, I had no idea a cancellation fee would be due.

If you had told them not to renew it at the renewal point then there wouldnt be a fee. However, you let them renew it and the policy was in force. So, it then became a cancellation. Their policy terms, like most insurers, allows an admin fee to be charged.

but £58.58 seems an awful lot

That is not all admin charge. Some of that will be the premium for time on cover rounded up.

wils1988

As they have my incorrect card details they wont be able to take the £58.58 but I guess its not something theyre likely to let slip

Quentin

Yes expect them to pursue you over outstanding debt.


But that is the least of your worries! (See #4)


You do need to try and get this cancellation rescinded otherwise you will have problems finding insurers in the future (most online insurers won't quote anyone with a cancellation due to default like this)


(And do make sure your current insurers are aware - not disclosing a cancelled policy does give them grounds to cancel/void your policy which may not happen till a claim is made or you get a claim made against you)

wils1988

OK thanks for clearing this up

lynna1967

What about when you let the company know you wanted to cancel, did not hear anything from them and then 17day after the insurance lapse they try to reinstate the direct debit? On ringing them they said they had no record of my call, but they have not had any money from me!