Cancelled direct debit for a valid Car insurance policy

[Barmeel]

Hi

 

I had a call from my car insurer saying that I haven’t paid anything towards my policy for last 6 months, although I have a valid policy. I had a DD setup with them from my last year's policy, but obviously they have done something wrong and cancelled the DD during my renewal and kept my policy valid, only to find out 6 months into this year's policy.

Now they are asking for last 6 months payments to be paid in 2 drops (which is their payment plan), on addition to start the monthly DD as of this month.

Just to add to the mix, I had 2 accidents last January in which were still under investigation at the time of my renewal (Last April), so they dropped my NCB and gave me a higher premium until the 2 accidents are declared non-Fault then after I could request back a recalculation for the policy and can get some money back accordingly. Now the 2 accidents are declared non-fault and my NCB is 4 years.

 

As this the insurer fault I told them that:

 

1. I need them to recalculate first the policy again based on NCB for 4 years.
   
2. I need the last 6 months to be re-planned over a 12 months period so I can afford to pay, and not to be paid on 2 payments as per their payment plan.
   
3. I confirmed that I am willing to pay the last 6 months.
   

 

They will get back to me within 2 days, however they assured me they won’t cancel the policy.

 

Can you please advise:

 

• am I doing the right thing?
  
• I had colleagues advising me that I am not liable to pay the last 6 months as this is their fault, and they can’t come after me for the money, so is that true? I am feeling uncomfortable doing that anyway, but would be good to know as I am negotiating with them.
  
• Can I leave them and go for another insurer? Or they won’t give me documentation proving my NCB?
  

 

Please help.

 

Thanks

[unclebulgaria67]

Yes and you are responsible for the premium, as renewal was automatic and insurance is a legal requirement.

 

What you can normally do in this situation is say that you are unhappy with this situation and threaten to involve both the FOS and FCA. Tbe FOS to look into a complaint and the FCA to look into the apparent IT issues at the Insurers. I would expect the insurers to write off some of the premium to compensate i.e 3 months worth of payments. Then you have say 9 months of the corrected NCB premium collected over the remaining 6 months of the policy.

 

You can leave the current Insurers, pay whatever sum you negotiate as being due on cancellation and arrange insurance elsewhere. They will send you 4 years NCB proof. But of course if you have not claimed since renewal, you will lose not having a period of being claim free since renewal.

 

They won't let you spread payment beyond the next renewal date. Best to negotiate a deal and use FOS/FCA referral as a stick to persuade them that they might be better doing an agreeable deal.

[Barmeel]

Thanks for pointing out the FCA & FOS, that is something that I would definitely use in my negotiation with them.