Is 'statement of detail' a contract ref Car Insurance

[abettertomorrow]

'Hi Fellow CAGers

 

I would like clarification please on whether a 'statement of detail' (the info car insurance companies collect from an on-line application) is a valid contract or not!

 

I got a call from Swinton this month (Oct) saying my car insurance was due.

 

Trouble is I took out my car insurance with the AA in Sept '10 as this is when I thought my insurance had run out.

 

However, Swinton now want £50 cancellation charge from me, even though I had 2 months insurance left with them.

 

I asked Swinton to send me a contract showing my original signature ie a 'binding contract', however all they sent me was a statement of detail.

 

I would like advice on how to handle this matter.

 

My plan is: -

- return statement of detail to Swinton with the words 'No contract return to sender' on cover of letter.

- If they further harass me with threatening letters saying I have 7 days to pay or I may incur more charges, I will then dispute the claim, write to Swinton head office, and file a complaint with FSA and FOS

- I will inform Swinton that if they pursue matters, then I shall issue a fee schedule, and I will charge £200 for each letter I have to reply to.

 

So, the question; is a statement of detail' a binding contract? and can I refuse to pay this ridiculous and unnecessary fee?

 

Any help would be most appreciated.

[unclebulgaria67]

If you did not receive a renewal notice prior to renewal, make a complaint on that basis. The FSA requires Insurers to send renewal documents so that they are received atleast 3 weeks ahead of renewal.

 

The statement of detail is just the information you gave which helped the contract be struck at the point you clicked on the internet to pay the premium.

 

If you challenge this using the Swinton complaints process and threaten to go to the FOS, they might back down. Insurers get charged a fee by the FOS, if their policyholders have to escalate complaints to them, so they normally like to resolve before it gets that far.

[vusys1]

all depends when your renewal date with Swinton is/was and if you took out the AA policy before Swintons had issued a renewal offer (usually 21 days before the renewal date).

 

If you took the policy out online I assume that the statement of details would be all that you would received as the policy documents also confirm this, also if you have paid for the policy, they have provided you with that insurance cover.

 

They could also hold your NCD until such charges are paid, your AA insurance could then be cancelled or premium increased.

 

Give us the dates the AA policy started and the Swinton it will then be easier if any overlap or not has occurred

[abettertomorrow]

@vusys1

"if you took out the AA policy before Swintons had issued a renewal offer (usually 21 days before the renewal date)."

Yes I did take out AA policy before a renewal notice was received from Swinton. Is that bad? I mistakingly took out AA policy 2 months before Swinton policy expired. I assumed my insurance was due in Sept instead of Nov (I must have had brain freeze or something). My loss ref 2 months premium down the drain.

 

"Give us the dates the AA policy started and the Swinton it will then be easier if any overlap or not has occurred"

AA policy started on - 16th Sept 2010

Swinton policy - 19th Nov 2009 - 18th Nov 2010

 

Swinton cancelled my policy when they phoned me (29th Oct 2010) to tell me my insurance was due for renewal and I'd told them I already had insurance with AA.

 

I never gave Swinton consent to cancel my policy. I phoned AA and explained situation to them, and they said they would cancel my policy for no charge, which I thought was nice.

 

I never received any renewal notice by post from Swinton.

[vusys1]

if Swintons have cancelled the policy there should be no charge as you have not instructed them, they have taken it upon themselves to action this, just because you were insured with the AA does not make a difference, it is not illegal to insure a car twice (complicated when theres a claim,but not illegal).

 

Call them and start the complaints ball rolling, I can see there is nothing in the policy wording regarding if THEY cance,. only a cancellation fee of £50.00 applies.

 

 

you say swinton and the aa have now cancelled your policys is this correct???

[abettertomorrow]

Hi vusys1

 

"you say swinton and the aa have now cancelled your policys is this correct??? "

No, AA were willing to cancel my policy if Swinton would have reinstated my policy to the end of Nov. But because Swinton cancelled policy, my AA policy remains intact (AA was never cancelled).

 

I've not heard from Swinton for over a week now, so I am assuming no news is good news. Should I phone them or just leave things be? Maybe they are letting my cancellation slip under the carpet.

 

If they do 'bother' me again, then it's hammer time. Letters will be going to fsa, swinton complaints folk, oh and of course their ceo; Peter Halpin. Bring it on.

 

Thanks for your help guys. Long live cag and all the beautiful people who sail with her.

[abettertomorrow]

UPDATE

I phoned the AA today to check my policy is in order. Which it is. Then I asked about my 5 years NCD. The AA then phoned Swinton to check I had 5 years NCD. Lady from AA phoned me back to tell me I now owe them an extra £48 because I only have 4 years 10 months NCD - which they rounded down to 4 years.

 

Suffice to say I told AA I wasn't going to pay any extra money and I will dispute £48.

 

Because of my honesty, I now potentially have Swinton and the AA chasing me for extra monies. I am fuming.

 

The whole car industry is a [problem]. They are messing with the wrong person here. I have no money, no house, nothing, and yet they ask for whatever they think they can get away with. As a last resort I will declare moratorium and offer to pay back 10p a week, but only after I've caused a stir and complained to the highest authorities in the land.