direct line too expensive, 1 month cancellation charge

tomjeffery

I have had building & contents insurance with Direct Line since I bought my house (2.5 years ago) and have just twigged that I am paying too much!:rolleyes:

My premium is £52/month including a cycle worth £1000

I have shopped around and get the same (or very near) with Sainsburys for £220.00/year!

Direct Line are saying that I have to pay 1 months cancellation charge. Is this normal? I would have thought after the initial year I would be 'out of contract' like a mobile phone?

My friend said that when he swapped he just stopped paying the direct debit and signed up to another policy. When they chased him he refused to pay the money and said that he would not pay for cover that had lapsed (which it would have done as soon as he stopped paying) anyway, they let it go and he got away with it

Sounds a bit risky to me but if I cancel today I have to pay £70.39 (settlement figure) for nothing really and start up payments to my new insurer

Any advice welcome (even if it is 'shut up and just pay')

dunstonh

Direct Line are saying that I have to pay 1 months cancellation charge. Is this normal?

Yes. You are breaking an annual contract.

I would have thought after the initial year I would be 'out of contract' like a mobile phone?

Incorrect assumption. Every renewal is an annual contract.

Some plans are monthly pay as you go. Others are annual contracts using credit agreements to cover the monthly payments. Failure to pay would allow them to register a default on your credit file if they wanted to.

My premium is £52/month including a cycle worth £1000

I have shopped around and get the same (or very near) with Sainsburys for £220.00/year!

I would verify that it is like for like. Most differences in premiums are far smaller than that.

tomjeffery

yeah i was worried someone was going to say that, thought i would double check!

as for the insurance allowances, maybe having 2 years no claims is helping out the new policy? i have opted out of home emergency cover and legal cover for the new policy - i'm not sure if this was covered by direct line.

other than that the contents, accidental cover to building & contents, the special items etc are all the same in both cases.

direct line insured the building as a flat rate of £1,000,000 (seems to be their defualt even though my flat is worth nothing like!) and sainsburys say that their cover is unlimited for buildings, it will cover whatever it costs.

so i can't see any massive differences in cover.

interestingly enough when i went to the direct line website and plumbed in the info for my current set up it quoted me £33/month and i am being charged £52/month!! i really think that something has gone wrong somewhere along the line.

is it worth pursuing a case with them that they have overcharged? i guess if each year is a fresh 1 yearly contract then it was up to me to check the details at the start of the policy instead of moaning half way through?

again, suggestions welcomed

thanks

dunstonh

Home emergency cover is probably the biggest difference. Legal would add a pound or two.

Personal possessions cover is a common one that gets missed off by people when comparing plans. That can double the contents premium.

is it worth pursuing a case with them that they have overcharged?

No. You chose to buy the product at the agreed price. No different to buying a product from one shop and finding you could have paid less at another. Renewal is the time to look.

Direct Line are normally competitive. Not the cheapest but

tomjeffery

hmmm not quite the same as buying from one shop and seeing it cheaper in another.... more like buying it in a shop 2 weeks before a sale!!

i'll just pay the outstanding balance and move. my policy runs until April next year so i'll save approx £180 (-£52 cancellation fee) = £128 by switching.

i don't really have anything of big value that i need insuring away from home apart from my cycle which i have listed as an extra item, so i'm confident that i'm covered for what i need

thanks for the info though

magpiecottage

tomjeffery wrote: »

direct line insured the building as a flat rate of £1,000,000 (seems to be their defualt even though my flat is worth nothing like!) and sainsburys say that their cover is unlimited for buildings, it will cover whatever it costs.

Why are you insuring the buildings of a flat? If it is leasehold, then it is normally the responsibility of the freeholder.