My car insurance was due for renewal 22/3/09. Direct line (whom I have been with for many years) sent a reminder in Feb. My visa card had expired so they were unable to take payment. but sent me a new certificate which arrived on 24/3/09. Due to a wage cut at work I checked other insurers and found substantially cheaper quote which I accepted. I contacted direct line and told them I did not wish to renew, but they now say I must pay a cancellation fee of £26.25 for the insurance from 22nd to 26th March when I returned my certificate. They are now telling me they will pass me onto their debt collectors and may add additional charges. This doesn't seem fair - besides wouldn't I be covered by the 7 day cooling off period? Thanks for any advice. Andy

You may find this of help. issue 54 - July 2006

If you cancelled during a cooling off period, then it is unlikely that the insurer can claim anything at all.

Hi all,

Some advice required please?

I too had an insurance with direct Line. All very good and above board.

Then it needed to be renewed. I phoned direct Line and cancelled it because I found it elsewhere cheaper. All fine and dinky (I would nearly go as far as to recommend them) Then a phonecall from our good friends AIC (Allied International Credit) who informed me that I needed to pay immediately £ 54.63. The usual was followed by rude calls from the AIC man. Question is, Do I have to pay this or can I dispute this 'cancellation fee'? Yes Direct Line sent me a letter telling me the insurance would run out. No I never told them it was to be renewed, and a couple of days after the insurance ran out, I cancelled it. No replacement covernote or policy was ever received. Please advise

Thanks in advance

DoubleU

My car insurance was due for renewal 22/3/09. Direct line (whom I have been with for many years) sent a reminder in Feb. My visa card had expired so they were unable to take payment. but sent me a new certificate which arrived on 24/3/09. Due to a wage cut at work I checked other insurers and found substantially cheaper quote which I accepted. I contacted direct line and told them I did not wish to renew, but they now say I must pay a cancellation fee of £26.25 for the insurance from 22nd to 26th March when I returned my certificate. They are now telling me they will pass me onto their debt collectors and may add additional charges. This doesn't seem fair - besides wouldn't I be covered by the 7 day cooling off period? Thanks for any advice. Andy

when did you call to cancel? before or after the renewal date? if after they do charge a "Admin Fee".

You can call and complain etc they may then write off the o/s.

Hi all,

 

Some advice required please?

 

I too had an insurance with direct Line. All very good and above board.

Then it needed to be renewed. I phoned direct Line and cancelled it because I found it elsewhere cheaper. All fine and dinky (I would nearly go as far as to recommend them) Then a phonecall from our good friends AIC (Allied International Credit) who informed me that I needed to pay immediately £ 54.63. The usual was followed by rude calls from the AIC man. Question is, Do I have to pay this or can I dispute this 'cancellation fee'? Yes Direct Line sent me a letter telling me the insurance would run out. No I never told them it was to be renewed, and a couple of days after the insurance ran out, I cancelled it. No replacement covernote or policy was ever received. Please advise

 

Thanks in advance

 

DoubleU

did you cancel mid term or advise them not to renew the policy?

If you cancelled mid term there would be a time on risk charge and flate rate "admin fee" usually £26.75?.

if you cancelled mid term you would have also been advised of the outstanding etc and received confirmation letters.