Insurance cancellation - I'm in the wrong, but are they more so?

[SC7]

I called my insurance company today to query a letter of intended cancellation, only to be told the policy had been cancelled on Tuesday and could not (legally) be reinstated.

Basically, I missed a payment in December and didn't realise. On Monday I received a letter through the door with a "Recorded Signed For" sticker on it - Only I didn't sign for it. It stated that I had 7 days to pay the outstanding balance or the policy would be cancelled. I didn't pay any attention to the date of the letter, which it turns out was the 4th of Jan.

Now, don't get me wrong, I know I shouldn't have missed the payment; but not only has a very late letter been signed for by my fking postman, but I have since been informed that a 2006 amendment to the Consumer Credit Act 1974 states that no less than 14 days notice be given for the cancellation of a credit agreement.

Is it worth arguing over or should I just swallow any cancellation fee and reinsure?

I'm currently awaiting a call with a quote.

[CraigyMc]

SC7 said:

I called my insurance company today to query a letter of intended cancellation, only to be told the policy had been cancelled on Tuesday and could not (legally) be reinstated.

Basically, I missed a payment in December and didn't realise. On Monday I received a letter through the door with a "Recorded Signed For" sticker on it - Only I didn't sign for it. It stated that I had 7 days to pay the outstanding balance or the policy would be cancelled. I didn't pay any attention to the date of the letter, which it turns out was the 4th of Jan.

Now, don't get me wrong, I know I shouldn't have missed the payment; but not only has a very late letter been signed for by my fking postman, but I have since been informed that a 2006 amendment to the Consumer Credit Act 1974 states that no less than 14 days notice be given for the cancellation of a credit agreement.

Is it worth arguing over or should I just swallow any cancellation fee and reinsure?

I'm currently awaiting a call with a quote.

Opinions will vary on this, but if you didn't sign for the letter, the insurance company have no proof they've informed you of anything, do they?

You could challenge that.

Personally, I'd just swallow it and not miss any payments in future. That's just how I roll.

C

[SC7]

I'll definitely question it, and I feel like complaining to Royal Mail to be honest.

I think I'll see what cancellation fee they come back with and go from there.

[Jobbo]

SC7 said:

I have since been informed that a 2006 amendment to the Consumer Credit Act 1974 states that no less than 14 days notice be given for the cancellation of a credit agreement.

Your insurance isn't a credit agreement, that's separate. So you still have to pay the sum due under the credit agreement but your insurance has been cancelled.

How did you miss a payment? They're collected by direct debit in pretty much every case, are they not?

[RJDM3]

Unless the rules have changed they cant cancel a policy if you have the certificate.

They also should have sent a letter before the 7 day RT letter they have sent advising that if not resolved asap then they will send you notice of cancellation.

[nottyash]

At the end of the day you never paid and ignored a letter because you never read it properly. I dont blame the insurance company.

[bull996]

I had almost the same thing.

Letter from insurance co saying they are going to cancel as I havent sent them proof of no claims (6 months into the policy).

Thing is, I HAVE sent them it, on top of which the previous policy was with their sister company. Not sure where to go from here, I had only 1 proof on NCB.

Anyway, its not just you with the odd postman-my last 3 "recorded" delivery letters have been signed for by "gary the Postman".

[Ean218]

Looks to me like the only people you have a gripe with is the Royal Mail.

[volvoforlife]

Is it worth the hassle of pursuing this?

You missed a payment, they cancelled the policy. Just reinsure it again. Will take you about 20-30mins max.

[GrilledBeans]

Challenge it, it's worth it rather then having to re insure gain. Also take it with the post office saying that because one of their staff decided he lived at your household you're now in an awkward predicament caused by his actions that is preventing you from getting to work and other daily chores.

If not for your insurance itself then at least sort the postman out just incase it happens to you or anyone else again.

[Jobbo]

GrilledBeans said:

Challenge it, it's worth it rather then having to re insure gain.

There's nothing to challenge; if the insurance has been cancelled it's ended and can't be reinstated.

[98elise]

I suspect this will cause you issues when you answer yes to "Have you ever had insurance cancelled?"

[einstein75]

98elise said:

I suspect this will cause you issues when you answer yes to "Have you ever had insurance cancelled?"

Good point, make sure you disclose this when getting your new quotes.

[GrilledBeans]

Jobbo said:

GrilledBeans said:

Challenge it, it's worth it rather then having to re insure gain.

There's nothing to challenge; if the insurance has been cancelled it's ended and can't be reinstated.

Wasn't aware of that, well depending how much the cancellation fee was I'd probs leave it, but still would enquire at the post office.

[SC7]

Cheers for the replies.

The reason for the missed direct debit payment was an iTunes debit of about £3 the day before. I know it'll sound silly to most but being self employed in a small business I usually only pay money into the bank when a bill is due out, and I don't have an overdraft.

I know I'm largely at fault, but I can't help but feel it's a little harsh - Especially as the new quote has come in at over £400 more than what I was paying, and that's with an excess of £500 instead of the previous £250. They also want £313 today to get it going again.

[plg]

SC7 said:

Cheers for the replies.

The reason for the missed direct debit payment was an iTunes debit of about £3 the day before. I know it'll sound silly to most but being self employed in a small business I usually only pay money into the bank when a bill is due out, and I don't have an overdraft.

I know I'm largely at fault, but I can't help but feel it's a little harsh - Especially as the new quote has come in at over £400 more than what I was paying, and that's with an excess of £500 instead of the previous £250. They also want £313 today to get it going again.

You had <£3 float on your account that caused it to be bounced?

I'd suggest you keep a bigger float... that's too tight to allow for any cockups or another party taking a late debit?

[Chiswickboy]

I think it would be worth getting on to the insurance company and explaining that their letter took six days to arrive and left you no time to rectify the position. If they are also required to give notice beforehand then say that this was also not received and you intend to take the matter up with Royal Mail but considering the circumstances could they (please, pretty please - a bit of grovelling is often better than Mr. Angry shouting down the phone) review your quote?

Also you will get hit by non-authorised overdraft fees and depending on who you bank with will determine the level of pain. But look on the bright side. With petrol prices due to rise even further in April your bank fees will prevent some poor multi-millionaire banker worrying about the cost of filling up his Bentley or whatever. (Barstewards got me for two month's fees when my o/d went into following month by two days). I do hate that bloody TV ad. for the bank where the call-centre girl is saying something like "well, we are all human and at least that bill is paid now". At least they have dropped the bit about her saying they are all like a fish out of water - presumably someone woke up and realised what the phrase meant.

[CraigyMc]

I don't understand how people can

• have a bank account
• not leave enough money in it to pay for bills
• be surprised at the "harshness" of what happens next

I either don't use the service that requires the bill, or I have enough money to cover the bill in the account.

Anything else just sounds like whining really.

[SC7]

CraigyMc said:

I don't understand how people can

• have a bank account
• not leave enough money in it to pay for bills
• be surprised at the "harshness" of what happens next

I either don't use the service that requires the bill, or I have enough money to cover the bill in the account.

Anything else just sounds like whining really.

That said, can we assume that you have never missed a payment or gone overdrawn in your life?

Like I said, I run a very small business and deal in cash. I only have two direct debits per month and I usually just whack the cash in to cover them a day or two before they come out.

As much as I'd love to keep a few hundred grand in my current account I am not capable of that luxury. I had a terribly quiet December because of the weather and was, for want of a better phrase, fking skint.

I have no issue with missing a direct debit/being charged for it - But I do feel they could have made a little more effort to notify me of the impending cancellation. A phonecall wouldn't have cost them the earth.

[CraigyMc]

SC7 said:

That said, can we assume that you have never missed a payment or gone overdrawn in your life?

Correct, not that it matters. It's not that I'm rich, it's more just about doing the right thing.

SC7 said:

As much as I'd love to keep a few hundred grand in my current account

I think we'd all want that. But we're not talking about £100K, are we? We're just talking about covering recurring, normal bills.

SC7 said:

I have no issue with missing a direct debit/being charged for it - But I do feel they could have made a little more effort to notify me of the impending cancellation. A phonecall wouldn't have cost them the earth.

Presumably the first thing they'd have know about it would have been a failed direct debit?

C