Cancelling and avoiding cancellation fee after claim

I was/am insured with 1st central. Car was written off on the 19th June and claim is now settled. As they do, balance of payments taken by them from the payout amount.
They say I can now insure new car as the policy is paid in full, but I wont be as they are double any other insurer for our new car.

So I cancelled my DD to them as well, they have the final instalment amount so wont be taking any cash from me, queue what I assume is a standard email threatening admin charges if DD is not reinstated in X days, and if its not they wil have no choice to cancel my policy and charge me the £50 cancellation fee.

Can I just leave this policy as is and have it expire/run its course and tell them I will not be renewing at the end - which is NOT classed as a cancellation and so wont be subject to the cancellation fee?

I am going to call them up to talk to them but jsut in case they try to bamboozle me and make out that they have every right to. I have checked the policy docs and it only states £50 renewal fee, £50 cancellation fee, so as not renewing is not cancelling there should be no fee yes?

Comments

  • Quentin
    Quentin Posts: 40,405 Forumite
    Check the policy wording, but with most insurers your wheeze won't work.


    If you don't put a new car on cover within a short space of time the policy normally gets cancelled under you


    (it's you who is changing the goalposts by changing the car)


    If you are going elsewhere for cover then (if you have any NCD) you will need to cancel anyway to use your NCD on the new policy
  • silvercar
    silvercar Posts: 46,865
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    I was/am insured with 1st central. Car was written off on the 19th June and claim is now settled. As they do, balance of payments taken by them from the payout amount.

    my understanding was that this ends the policy.
    They say I can now insure new car as the policy is paid in full, but I wont be as they are double any other insurer for our new car.

    Seems reasonable....
    Can I just leave this policy as is

    The policy for the new car or old?

    I would have thought you could start again with whoever you like. After all, not everyone will have bought a new car straight away. Some people may ask for a NCD certificate and wait until they see the car of their choice/ can afford a new car/ stop driving for a time...
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Quentin
    Quentin Posts: 40,405 Forumite
    silvercar wrote: »
    my understanding was that this ends the policy

    ..
    No.


    You must be allowed to use up the remainder of your policy with a replacement car (assuming the replacement is acceptable to the insurer), though there may be a premium increase should the replacement car incur a higher premium
  • silvercar
    silvercar Posts: 46,865
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    Quentin wrote: »
    No.


    You must be allowed to use up the remainder of your policy with a replacement car (assuming the replacement is acceptable to the insurer), though there may be a premium increase should the replacement car incur a higher premium

    So if you are not replacing the car, do you have to cancel or can you let the policy run its course?

    Assuming the latter, could you let this policy run its course and take a new policy elsewhere.

    (I know that normally you have to cancel policies after a sale to prevent a 3rd party claim on your policy, but here the car has been written off.)
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Quentin
    Quentin Posts: 40,405 Forumite
    silvercar wrote: »
    So if you are not replacing the car, do you have to cancel or can you let the policy run its course?

    Assuming the latter, could you let this policy run its course and take a new policy elsewhere.

    (I know that normally you have to cancel policies after a sale to prevent a 3rd party claim on your policy, but here the car has been written off.)


    Your assumption was wrong


    See #2. You normally only have a limited time to get another vehicle on cover.
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