Hi,

I have been with the AA car insurance for about 5 years now, paying monthly. My policy was renewed on 20 October 2010.

This morning I recieved a letter saying 'thank you for contacting us to cancel your policy as of 1 December 2010. An admin charge of £50 has been applied'.

Upon calling the AA today they have explained the following...

1. On my previous policy I missed one payment of £43. They did not inform me of this.
   
2. The set up the new policy knowing there £43 outstanding on the previous year.
   
3. All payments on the current policy have been made on time.
   
4. They cancelled the current policy due to arrears on the previous one.
   

Now I owe £43 arrears, £50 charge & I have been driving without insurance for 2 weeks, so now need new insurance (another deposit)

Can they cancel my current policy if it is NOT in arrears?

no they cant

breach of contract

if your policy ( i take it has a differentt policy number) to the previous one

how long ago was this payment missed

It was the last payment of the year, so it would have been the september - October 2010 payment

Thanks, I thought this may have ben the case but wanted reassurance before I confronted them about it.

did you renew the policy (calling them) or did they auto renew?

if auto it will still renew despite a payment being missed from the previous renewal.

Did they say what payment was outstanding i.e was it the final instalment?

I only ask as I know our systems for (RBS,Churchill etc) will not send the policy holder any letters if the final payment has rejected due to a renewal has already been issued. The 1st the customer is aware is when we start sending chase letters a few weeks down the line.

Also if THEY have cancelled the policy they should not be charging you the privilege for it.

Hi,

 

I have been with the AA car insurance for about 5 years now, paying monthly. My policy was renewed on 20 October 2010.

 

This morning I recieved a letter saying 'thank you for contacting us to cancel your policy as of 1 December 2010. An admin charge of £50 has been applied'.

 

Upon calling the AA today they have explained the following...

 

1. On my previous policy I missed one payment of £43. They did not inform me of this.
   
2. The set up the new policy knowing there £43 outstanding on the previous year.
   
3. All payments on the current policy have been made on time.
   
4. They cancelled the current policy due to arrears on the previous one.
   

Now I owe £43 arrears, £50 charge & I have been driving without insurance for 2 weeks, so now need new insurance (another deposit)

 

Can they cancel my current policy if it is NOT in arrears?

Hi there, I work for the AA and noticed this thread. Can I suggest you call the Customer Care team on 0845 608 2818, Option 1, where they will be happy to discuss this with you.