Charge for not renewing policy

waj_the_badge

I have a breakdown policy with Nova.  They are trying to charge me £4.99 if I choose not to renew my policy with them. It says nothing about it in my policy documents. Surely this cannot be legal ? Also, can they take this from the Credit Card which they hold details of without my agreement.

DoaM

https://www.nova-direct.com/terms-and-conditions/ which you will have had to confirm that you read and accepted:

25. Our Services

The following service charges, £4.99 per service, are applicable upon the service provided:

• arranging a new policy or renewals,
• making a change to your policy (e.g. change of address, vehicle registration numbe etc.),
• correction to a policy Issuing a duplicate insurance certificate,
• administration of a dishonoured payment Policy cancellation fee,
• cancellation of your policy by the broker,
• cancellation of your policy by the insurer,
• credit charge for premium instalments,
• credit card transaction fee.

All our service charges are non-refundable.  Some insurers may also make charges for changing a policy, but you will be informed of this before incurring a charge.

They've been very cute in the wording of the first bullet ..... but it doesn't specifically say the charge applies to cancellation of renewals. As such the doctrine of contra proferentem applies - if a term is ambiguous then the meaning which favours the party who did not create the term shall apply. If you're not renewing then a) advise your card provider to cancel the Continuous Payment Authority (CPA) that Nova established (your card provider must follow your instructions - they have no choice in the matter), and/or b) if the charge gets through, dispute it.

foxy-stoat

So they are charging you £4.99 to arrange a new policy or arrange renewal - not lapsing at renewal - they are being unfair I think.

Try to cancel the cover 1 day before renewal, I cannot see a charge there, as long as you cancel it direct with the company and not the broker.