Hastings insurance trying to charge me for nothing

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I recently took out a new policy with Hastings Direct, scheduled to begin next month, with the payment due in a few weeks. Since obtaining the policy, I was involved in a non-fault accident, and the other party’s insurance has accepted full liability. I informed Hastings Direct about this incident via email. They responded by advising me that my premium would increase by 25%, making the policy uncompetitive, as I can obtain coverage for much less elsewhere. I rejected this increase and requested that Hastings Direct cancel the policy.

Despite the policy not being effective until next month, Hastings Direct informed me that I now owe a £20 fee. I refused to pay this fee because the cancellation was necessitated by their increase in the premium from the agreed amount. Subsequently, they sent an email stating they would take the payment from a debit card they have on record. I responded, stating this is unauthorised and that if they proceed with the payment, I will instruct my bank to reverse it and report them for fraud.

Could you provide your opinion on my position here? The terms state there is a £20 fee if I cancel after 14 days, but does the 14-day period reset if they change the cost?

Browntoa

You misunderstand car insurance 

No claims is not the only factor used to calculate premium 

You've had a accident, even if not your fault, and this affects the premium.

No claims protection pays the difference in this scenario between the original premium and the increased premium 

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I understand that insurance companies sometimes increase their premiums. I believe Hastings has increased the premium by an excessive amount, I have over 20 years of protected no-claims. Since the policy has not yet started, I have the right to cancel and shop around for a better deal. It is now much cheaper to stay with my current insurer, Direct Line. I am not happy with Hastings for pricing themselves out and then attempting to charge me a £20 fee. It's not about the amount—£20 isn't a lot—but the principle of paying them £20 when they have attempted to overcharge me.

leonard_455

I think you have a strong argument here.

 The 14 day cooling off period is usually intended to allow customers to change their mind or cancel their policy without penalty.

 However, in your case, the policy terms were changed by Hastings Direct themselves, which seems unfair.

 The fact that they increased your premium by 25% after you notified them of a no-fault accident is  a significant change from the original agreement.

 It is reasonable for you to want to cancel your policy and explore other options.

 As for the £20 fee, I think you have a right to object to it.

 Since the policy hasn't even started yet, it's difficult to know how responsible you are for  cancellation fees.

 The terms may say 14 days, but this is usually  the  start date of the policy, not  the date you accept the policy.

 What's worrying is that Hastings Direct is threatening to take payments from your debit card without your consent.

 You've made it clear that you did not authorize the payment, and if they continue, you have the right to report it as fraud and ask your bank to reverse the transaction.

 Overall, I think your arguments are strong and you should explore options for referring this matter, perhaps to the Financial Ombudsman Service or the Consumer Protection Authority.

400ixl

Put simply, for once Hastings are likely right and you are not.

Read the T&C's of the contract you entered into.

You had a change of circumstances which were declarable. These resulted in a change in price which is valid and legal. They did not instigate the change so it was not unfair. Currently you have an at fault claim incident as until the 3rd oparty has settled that is the way it is seen.

You then decided to cancel through the cooling off period. This gives you the right to cancel the policy and get your money back. What it doesn't preclude is for the insurer to charge an admin fee to do so as long as it was in their T&C's.

The 14 days starts from when you receive access to your insurance policies or the policy starts. With online policy access that is pretty much instant these days. So it will have started before the policy start date.

There is also no fraud here, 

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400ixl said:

Currently you have an at fault claim incident as until the 3rd oparty has settled that is the way it is seen

The third party have settled, they have repaired my car and I’m expecting it back on Monday. 

400ixl said:

There is also no fraud here, 

Hastings has indicated their intention to use a debit card number they have on file to take payment from my bank, despite my explicit statement that they are not authorised to do so. I have instructed them to immediately delete any payment information they hold on record for me. If they attempt to take payment, I will consider it bank card fraud and will report it as such. Even if I am liable for the £20 fee, they do not have unrestricted access to any bank account details they may hold.

400ixl

Either way, you will still owe the £20 and would have to pay it through some means. 

Annemos

Yes, I just paid for my Home Insurance Policy (which only starts in 3 weeks time). 

They wrote in the acceptance mail, that their Cooling off Period is 14 days, from "when I received the Policy Documentation". 

As I received that on the date I paid, date of payment is the Date for me. 

retiredbanker1

OP - Have you told your existing insurer too?

cw8825

The cancellation fee will still apply
there will have been costs involved in setting up. Administering and ultimately cancelling the policy

Unfortunately it is not the insurers fault you wish to cancel. 
£20 is on the low side 

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retiredbanker1 said:

OP - Have you told your existing insurer too?

Yes, and they confirm it will not affect the premium if I renew with them.

cw8825 said:

Unfortunately it is not the insurers fault you wish to cancel. 
£20 is on the low side 

I disagree. The 28% increase in premium costs essentially forced me to cancel. While I agree that £20 isn't a significant amount, for me, it's about the principle.