Help please with AA car insurance

fairylights_2

Sorting through our household paperwork I've finally gotten round to the car insurance. I'm now JUST clear of five years post a traffic light camera penalty, so that should no longer count, and next month we'll be clear of the three years post writing off our last car (NOT our fault, but i don't think they care).

ANYWAY I've assumed that AA car insurance Direct debits were exactly that, and have found frighteningly that on top of 769.00 for the car insurance (not so bad on it's own) we pay another 45 payment protection and 100 interest. It would seem that my OH has been signed up to a credit agreement rather than direct debiting and hadn't realised.

What can we do? Our renewal isn't up until the end of January, and swapping insurers in the next few weeks is probably not a bright idea. Can we call them and cancel the payments? Put it on the cc instead as it'll save us a bundle? Or can they hold us to the payments until the policy is over?

They're sneaky, these big companies, aren't they? :mad:

telly-addict

fairylights wrote:

ANYWAY I've assumed that AA car insurance Direct debits were exactly that, and have found frighteningly that on top of 769.00 for the car insurance (not so bad on it's own) we pay another 45 payment protection and 100 interest. It would seem that my OH has been signed up to a credit agreement rather than direct debiting and hadn't realised.

I'm not quite sure what these extras are.

Is the £45 for NCD protection, i.e. you won't lose your NCD even if you have an accident? Is the £100 for interest payments on your monthly direct debit? Most companies charge a premium for paying on a monthly rather than annual basis. These "extra" will have been detailed on your insurance documentation at the start of the policy and each subsequent renewal.

If these are the extras, you are entitled to pay the balance of the premium in one go (and presumably save some interest). Or you can cancel your insurance and move to another company if you have made no claim on the insurance this year. This may be subject to a cancellation charge - you'll need to check the policy wording.

You may be better off lapsing the policy at renewal in January and switching insurers. You need to establish what cover you want and then check the policy documentation when received.

Hope that this is of some help.