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canncelled car insurance but....

michael1152michael1152 Posts: 1,974
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in Advice #1
Hi people- I've cancelled my car insurance 2 weeks ago, and they wanted £30 cancellation fee which was fine. Now I've got one letter saying that the £30 is to pay and it says outstanding from 15 August. Then I have to keep paying payments on 6 Sept, till Februaury next year. I'm confused. Surely if I've cancelled it after paying monthly DD, why would they still want money off me every month! It's with Direct Line by the way. Someone told me just to cancel the direct debit with the bank, and if they start sending me letters for ££ there's nothing they can do, as if I haven't got a car anymore I shouldn't be still paying insurance for it ?

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    SupratadSupratad Posts: 10,450
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    #2
    Have you phoned them? It might just be a crossover of automated letters.
    You need to check with them. Not having a car does not negate your contract with your insurers, if you agreed to pay monthly.
    Cancelling however, and paying a £30 fee does end the contract. So if you have done that, you are in a good position to harangue them on the phone.
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    HypnodiscHypnodisc Posts: 22,728
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    #3
    Supratad wrote: »
    Have you phoned them? It might just be a crossover of automated letters.
    You need to check with them. Not having a car does not negate your contract with your insurers, if you agreed to pay monthly.
    Cancelling however, and paying a £30 fee does end the contract. So if you have done that, you are in a good position to harangue them on the phone.

    This.

    You might find that the full amount of money is still due.

    Again, you might find that the £30 fee is just for a 'change of information', and isn't an actual cancellation fee?

    It almost seems a bit good if you can just get out at any time by paying £30..

    /cynic
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    [Deleted User][Deleted User] Posts: 4,864
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    #4
    Who is your insurance provider, and did you make a claim against your current policy?
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    Keefy-boyKeefy-boy Posts: 13,613
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    #5
    According to the Direct Line website their car insurance cancellation charge is £47.70, so there would appear to be a misunderstanding if a £30 fee has been charged.

    OP just pick up the phone and ask them what's gone on.
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    jsmith99jsmith99 Posts: 20,382
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    #6
    £30 seems a very low charge for cancelling the remainder of a year's insurance. Often there's a varying percentage of the year's premium which has to be paid, depending on how long the contract has to run. I suspect the £30 could be a fixed admin fee on top of this.

    The OP needs to read the T&C of their policy.
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    PaulS67PaulS67 Posts: 12,371
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    #7
    How did you cancel?

    Reading the end of your post you cancelled the direct debit, this does not cancel the insurance and if they send letters because of this you still have to pay
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    Keefy-boyKeefy-boy Posts: 13,613
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    #8
    paulsalter wrote: »
    Reading the end of your post you cancelled the direct debit,
    Maybe you should read it again!
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    PaulS67PaulS67 Posts: 12,371
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    #9
    Keefy-boy wrote: »
    Maybe you should read it again!

    I have read it numerous times, it does not make sense

    Insurance was cancelled and they want £30 cancellation fee
    received a letter saying amount outstanding of £30
    payments still have to be made until feb next year

    so my question was, how was it cancelled, as this does not make sense

    and what does this bit meen

    Someone told me just to cancel the direct debit with the bank, and if they start sending me letters for ££ there's nothing they can do, as if I haven't got a car anymore I shouldn't be still paying insurance for it ?
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    Nigel GoodwinNigel Goodwin Posts: 58,528
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    #10
    Why not just ring them and ask?.
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    michael1152michael1152 Posts: 1,974
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    #11
    When I cancelled they did say the fee was £47. XX whatever, and I said I haven't used any breakdown cover which I paid about £100 for the year, so they let me cancel my policy for £30.80.

    And yes, he said to carrying on paying was an automatically generated letter from the loyalty team! As he thought I'd rang the first time to cancel and they had reduced my premium a bit- all quite confusing really, but I don't have to pay anymore ever again so :):)
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