Car insurance

Rob249 · 08-11-2008, 16:36

Last year when i took out my car insurance, i paid two months up front with the last payment due at the end of september.Anyway when i went to the bank yesterday and checked my account, i noticed that they had taken another monthly payment out.When i got home i got straight on the phone to them, and asked them why they had done this, they said it was a deposit for next yr's insurance.I told them they should not have done this as i wasn't going to be renewing with them next year, they just presumed i was.Luckily i have enough money in my account, to tide me over, til i get it refunded, but others may not be as lucky, and end up going into the red, and end up with bank charges through no fault of their own.

derekgas · 08-11-2008, 16:44

They usually send a letter stating what the premium will be, then if you dont respond, they just continue taking the money, it is also the point where they are likely to change the cost.

lancsdave · 08-11-2008, 16:44

Quote:

Originally Posted by Rob249

Last year when i took out my car insurance, i paid two months up front with the last payment due at the end of september.Anyway when i went to the bank yesterday and checked my account, i noticed that they had taken another monthly payment out.When i got home i got straight on the phone to them, and asked them why they had done this, they said it was a deposit for next yr's insurance.I told them they should not have done this as i wasn't going to be renewing with them next year, they just presumed i was.Luckily i have enough money in my account, to tide me over, til i get it refunded, but others may not be as lucky, and end up going into the red, and end up with bank charges through no fault of their own.

If you hadn't told them you were going to cancel then they would assume you were going to continue. It's how they all operate.

Rob249 · 08-11-2008, 16:48

In the past i have been sent a letter a couple of weeks before my insurance finishes, quoting me with the cost for next yrs insurance.

claytonender · 08-11-2008, 20:25

This shows just how dangerous it can be to set up a Direct Debit - it gives someone else the authority to take money from your bank account.

Had your previous 12months Insurance expired, or did they take the money before the date of your renewal? You should contact your bank and ask them to refund the amount of the DD as it appears that your Insurance company have broken the terms of the DD agreement - here is a link to the DD guarnatee.

Direct Debit - your rights

If I am not going to renew an Insurance Policy that I pay by DD I always cancel the DD with my bank immediately the last payment has gone out.

Rob249 · 09-11-2008, 10:05

Thats the annoying thing about it, my insurance is paid up til 20th december when it expires, they have took this payment as a deposit for next year, but i don't even know how much the insurance will be with them, and i'm definately not renewwing with them.

jaysay · 09-11-2008, 10:32

Quote:

Originally Posted by Rob249

Thats the annoying thing about it, my insurance is paid up til 20th december when it expires, they have took this payment as a deposit for next year, but i don't even know how much the insurance will be with them, and i'm definately not renewwing with them.

The thing is Rob if the last payment had been taken and you were not going to renew with them, it may have been an idea to channel the DD, I have just changed house contents insurance, the first thing I did was to cancel the DD on the other account

pipinfort · 09-11-2008, 11:23

Either way its bang out of order and i would be fuming.........Name and shame the company responsible please.......

claytonender · 09-11-2008, 11:46

Quote:

Originally Posted by Rob249

Thats the annoying thing about it, my insurance is paid up til 20th december when it expires, they have took this payment as a deposit for next year, but i don't even know how much the insurance will be with them, and i'm definately not renewwing with them.

You should contact your bank and request a refund- as per the DD code of conduct.

Does it say anywhere on the paperwork that you have form the Insurance company tha they will take a deposit for the follwoing year's Insurance before the current Insurance is due for renewal. It might be worth making an official complaint to the company and then following it up with a complaint to the Insurance ombudsman, as this does appear to be a very 'questionable' practice by the company.