My wife received a letter on 21st Nov telling her that her insurance had been cancelled on the 13th Nov due to a direct debit not having gone through. Now while I am frustrated about cancelling the insurance without talking to us first about a simple oversight on our banking, I understand they can apply this cancellation but surely they have to inform us that they are cancelling the insurance before actually voiding the policy? I mean we were driving around for over a week with no insurance but no idea that that was the case? How is this allowed?

My wife received a letter on 21st Nov telling her that her insurance had been cancelled on the 13th Nov due to a direct debit not having gone through. Now while I am frustrated about cancelling the insurance without talking to us first about a simple oversight on our banking, I understand they can apply this cancellation but surely they have to inform us that they are cancelling the insurance before actually voiding the policy? I mean we were driving around for over a week with no insurance but no idea that that was the case? How is this allowed?

When was the letter dated? Did it reference prior correspondence? Call your insurer and asked them what date they posted this notice to you.

Off the top of my head I don't know what the date of the letter was, but I will check that out.

It definately didn't reference any prior correspondance and when my wife phoned they said they had tried to phone us but didn't leave any messages. So basically they cancelled the policy and then told us about it, unless the letter got held up in the post but as I said I will check the date on it tonight.

They have to give 7 days notice by recorded delivery.

Our process is if a DD rejects,letter is sent saying we will reapply,if it rejects again a 2nd letter is sent saying we will reapply,if it rejects again a final canellation letter is sent confirm on what date it will be cancelled unless the outstanding is paid.

If the DD mandate was cancelled,we would send a new DD mandate,if no reply another mandate,if still not reply,cancellation.

Some companies take the cancellation of a DD mandate as instruction by "you" to cancel the policy & will do so.

They do not have to sent 7 day canellation by recorded.

It's my impression we do have to give notice when cancelling a policy.

Monetos reiterates FSA policy here:

Once a policy is in force, the insurance provider must honour it except in specific legal circumstances, such as if you submitted a fraudulent application. However, your insurer has the right to cancel a policy by giving seven days written notice.

Cancelling your Car Insurance Policy, Terms & Conditions, UK Insurance - MONETOS.co.uk

I don't think it says 7 days anywhere in the FSA Handbook, actually, but there is the TCF rule that can be applied liberally due to its ambiguity.