Not been paying insurance and didnt know

mattee77

Hi, just a quick question. two insurance payments bounced around 7 months ago due to being in hospital. the arrears were paid with another card. since then the direct debit has been cancelled without me knowing and no one has contacted me from More than to say i havent been paying. Seven months later i go to change insurers and they write to me saying i owe then hundreds of pounds. My question is, should i pay it. If i was involved in an accident i cannot see they would of paid out as the policy payments wasnt up to date. I am furious more than did not contact me.

lisyloo

My question is, should i pay it.

I think you will be legally obliged to pay it.
You took out an annual contract and you didn't cancel.

I agree with you that they would probably squirm if you had made a claim, but nevertheless you are legally liable for the contract you made for an annual insurance.

I am furious more than did not contact me.

I think you have to take some personal responsibility here as well.
Sure it was difficult whilst you were in hospital but that was rather a long time ago.
You need to check statements at least every month to make sure everything is in order.
If you are a busy person (aren't we all) then I suggest checking them whilst you are eating.

BenL

I think the way they do it is:

More than offer you a policy

You take up the policy and decide to pay monthly.

For the monthly payments More Than (Finance) pay More Than (Insurance) the amount in full.

You now have a finance agreement with More Than (Finance)

Your insurance was paid in full, you have just defaulted on the finance agreement.

You need to pay the finance off unfortunetly.

In the event of an accident when in your situation, More Than should say "You pay us your outstanding amount and we will cover you for the claim you are making"

Ben

lisyloo

For the monthly payments More Than (Finance) pay More Than (Insurance) the amount in full.

Yes, it's important to note that it's an annual policy for which you have taken credit.
It's not a "pay as you go" policy.

dunstonh

Can only agree with the above.

At the moment, refusing to pay is going to harm your credit as they will show it as a default on your credit file. Plus, you have gained benefit from not paying for those months and earning interest on the money. So you are not out of pocket.

mattee77

Good Point, dunstonh. Looks like i better get my wallet out then, thanyou all for your help. Just hope they accept Credit Card payment