Car Insurance, can i just cancel

[LittleHobo]

Hello

I took out some car insurance with Direct Choice at the beginning of the year. I paid them the first two installments and then cancelled my direct debit because they set it up incorrectly and it wasnt coming out on the day specified originally and it would have caused me to go overdrawn.

I have since moved and no longer need the insurance (and havent done so since i cancelled the DD). I also felt that they were a bit of a micky mouse company as they said that they would have to charge me £20 for changing my address with them if i needed to. Which i feel is extremely excessive.

I am going travelling next week for 3 months and want to tie all this up before i go. I have received some letters from them (albeit only this week) as i no longer live where i was and did not get my post passed onto me until this week.

Can i just write to them giving back all the docs and advising them i no longer need and havent needed the policy from when i last paid.

Will i owe them anything legally?

TIA for your help.

[Rob S]

You can cancel, but they will probably charge you short term cancellation rates, which is the usual policy in respect of car insurance policies. They may well have the cheek to add on an admin fee for the privilige of cancelling your policy. I doubt they will backdate the cancellation to when you stopped using the vehicle and it is more likely they will only date the cancellation from when you advise them of your intention to cancel.

[Darkangelsdelite]

Have you actually called them to cancel the policy? If not then the debt is only going to continue to mount as the policy will still continue even though the payments have been stopped, eventually the company will cancel the policy for non-payment and will chase you for any arrears as the car has still been "on risk". If you have sold the car, your best option would be to write to them, enclose a copy of the sale doc and ask them to cancel the policy back to that date as the cover was no longer required. As stated above, you will probably need to pay a cancellation charge as you are outside your 14 day cooling off period.