Cancellation fee??

[minxykitten]

Hi
I have just received a letter from my car insurance company demanding I pay a �45 cancellation fee for my policy. I am a bit confused as to why they want me to pay this as in effect I did not cancel my policy, I just chose not to renew at the end of the policy. Will I have a leg to stand on if I choose to argue this?

[DONNA1458]

What ins company was this?

[NORMANTHEDOG]

you should not have to pay any money,if you decide to not re new your policy,providing you dont owe them any money.

[weeal]

I agree with Norman, there is only a charge if the policy still has a percentage of time to run, you havent in effect 'cancelled' if you dont choose to renew

bloomin thieves

[minxykitten]

Thanks very much for your answers.
This is with Elephant. I have argued with the guy on the phone, who annoyingly put me on hold for 15 mins!! He then said he would have to get back to me on Monday as he couldnt tell me why they are charging me this and he will have to speak to the accounts department. They are also chasing me for my last installment payment as they did not collect it via direct debit at the start of the month?!

[dilligaf]

Have you read the small print on the contract you signed???

Whatever, I wouldn't worry about it. They won't take you to court for �45.

[Bazile]

If you pay by installments / direct debits, some
insurers / brokers automatically renew the policy , unless you tell them before the policy is up , that you dont want to renew

[Bazile]

Oh - i forgot to say that I wouldn't count on them not proceeding with litigation
I once forgat to pay a months council tax , approx � 60 and the council was about to start the the court process

So try and sort it out - dont ignore it - you dont want it to affect your credit rating .

[dzug]

Well you owe the last instalment, regardless of why it wasn't collected. Maybe this has something to do with why they are asking for a cancellation fee.

Get it sorted out, as others have suggested.

[minxykitten]

Well I don't mind paying the last installment fee as I owe it. Do you think they might be trying to charge me this cancellation fee because it is classed as a rolling contract. If i had not of told them I didnt want to renew my insurance would have automatically renewed.

[sifellis]

Hi there.

We have this problem all the time with our customers. The policy holders take it upon themselves to cancel their own direct debit, which by it's nature, will finish after the last installment is collected anyway. People regularly fail to read the documents and know the difference between a direct debit and a standing order.

If you have cancelled your payment the insurer may well have cancelled your policy and will want the last installment. If they haven't cancelled it and your policy ran for thr full term then it'll be the last payment they're after, They cannot charge you a cancellation fee if your policy runs for the whole year and you then choose not to renew.