Insurance payments

Jagnew

Hi All

Sorry if this is not posted in the correct place, it seemed the nearest to my related question.

I let my car insurance lapse after I sold my car. Unknown to me, the insurance company renewed the policy and started to take further payments without me knowing. On their website when I logged in, I see a link asking me to sign a new credit agreement for monthly payments which I have not signed. They have taken 3 payments now and I have now cancelled the direct debit at the bank so they can’t take any more. Am I correct in thinking, because I did not sign the credit agreement, they must return the 3 payments that were taken without my authority?

Thanks
John

Greta_Sharbo

Did it say it would be auto renewed?

George_Michael

Jagnew wrote: »

Unknown to me, the insurance company renewed the policy and started to take further payments without me knowing.
.........
Am I correct in thinking, because I did not sign the credit agreement, they must return the 3 payments that were taken without my authority?

It all depends on what was agreed when you initially took out the policy.
If at that time you agreed to allow the policy to be automatically renewed then irrespective of not signing the new credit agreement, you will be liable for any payments made until you cancelled.
Many insurers will have a smallprint condition allowing for policies to be automatically renewed unless they are advised otherwise so you need to find out exactly what you agreed to when you took out the policy.

eddddy

Jagnew wrote: »

.... I have now cancelled the direct debit at the bank so they can’t take any more.

Did you agree this with your insurer?

If not, this is a very risky thing to do - it will put you in breach of contract, and your insurer is likely to cancel your policy for non-payment.

How does a cancellation affect future policies?

Insurance cancellation is something you’ll have to declare with every new insurance provider. A cancelled policy serves as a red flag and you may struggle to find a mainstream insurance provider to cover you. Alternatively, you may end up paying a lot more for your policy.

Link: https://www.comparethemarket.com/car-insurance/content/policy-cancelled-by-insurance-provider/

You need to contact your insurer to discuss this. They may be sympathetic - but equally they may not be, and charge you cancellation fees etc. But it's better than having your insurance cancelled for non-payment.

Gavin83

eddddy wrote: »

If not, this is a very risky thing to do - it will put you in breach of contract, and your insurer is likely to cancel your policy for non-payment.

This. If your insurer cancels your policy is will mess up your insurance for life. Insurers will always ask if you've had a policy cancelled and unless I'm mistaken there isn't a time limit on this. As pointed out a number of companies will no longer insure you and you could reasonably expect your insurance costs to double. That's a lot of money.

Ring them up and speak to them. However the majority of car insurance policies auto renew so you'll almost certainly have agreed to this at the time of taking it out. Realistically the best you can hope for is for you to cancel the policy, in which case you won't pay any further contributions, although there will be cancellation fees. Did you not receive any correspondence regarding the renewal?

Whatever you do though don't stick your head in the sand. Ring them ASAP.