charge for cancelling insurance

dianej_3

Hello, is it common for insurance companies to automatically renew your insurance, send you a bill after the date of the insurance and then when you have rung them to say you don't want the insurance charge a ridiculous 10% of the annual bill for 2 days cover which you by now have already insured with another company? That is what Budget are doing to me causing loads of grief and sleepless nights.
Help, please, if they give it to an outside agency does that mean I'm going to get a bigger bill?
Thanks Diane

lisyloo

Some companies do this and they should have told you about it in your terms and conditions that you received at the beginning which you should have read.
So yes it is common.

If you wanted to cancel you should have told them before the renewal date and not after.

charge a ridiculous 10% of the annual bill for 2 days cover which you by now have already insured with another company?

Was the cancellation scheme explained in your terms and conditions?
It's meant to be an annual contract.
If you want to stop it 364 days early then there will be a penalty as they've already set up the policy.

Help, please, if they give it to an outside agency does that mean I'm going to get a bigger bill?

Do you mean a debt collection agency?
Yes, the bill will increase if they have to try to force the money out of you.
This would be a bad move as it may also show on your credit record for 6 years and stop you getting loans and mortgages.

Have a read of the terms and conditions they sent you and see if it was explained.
If it says they will renew and also explains the costs for ending it early then I am not sure you will have much of a leg to stand on.

dunstonh

is it common for insurance companies to automatically renew your insurance

Yes. Quite a few do this.

send you a bill after the date of the insurance

Yes if you havent paid and havent notified them of your intention not to renew.

then when you have rung them to say you don't want the insurance charge a ridiculous 10% of the annual bill for 2 days cover which you by now have already insured with another company?

You have had two days of cover on an annual contract and the insurer has involved costs in renewing the policy and is entitled to recover those costs.

That is what Budget are doing to me causing loads of grief and sleepless nights.

No. Its what you have done to yourself for not reading the renewal letter. Come on its not difficult. You get a letter in the post with your renewal schedule and the letter is one, maybe two sides of A4 and one section is what to do next. If you cannot be bothered to read that then its your own fault.

It may be fashionable to blame others but you need to take responsibility for this one.

if they give it to an outside agency does that mean I'm going to get a bigger bill?

That means they will pass it to a debt collection agency who will take you to court if you refuse to pay. You will also pay costs on top as well as it hitting your credit record.

C_Ronaldo

I make a note when my insurance is due to run out and i phone up before its due to run out