My car’s a write-off so why must I keep paying to insure it?
I INSURED my old Vauxhall with Direct Line. In September, I ran into the back of another vehicle.
Direct Line said my car was a write-off and insisted it was scrapped. I phoned about cancelling the insurance policy and was told there would be a £47.70 administration fee. This is also the amount that I was paying each month.
They paid me £500 for the car, having deducted £250 excess. I chose to insure my new car with a different company.
Direct Line is insisting that I pay the monthly premiums for the full year — another nine months!
When I spoke to their helpline, they discovered that someone did, in fact, advise me that I would have to pay only one payment of £47.70, but they are still insisting on full payment. Are they entitled to do this? I am on a minimum wage, zero hours contract, so really can’t afford this.
Ms A. P., Chatham, Kent. I am afraid that having reviewed your case and received evidence from Direct Line, I feel you should pay the insurance premium owing.
When you buy an insurance policy you are buying a oneyear contract, even if you pay monthly. This is standard throughout the insurance industry. You can usually cancel the policy for a fee, but only if you have not made a claim.
Once a claim has been made you are committed to the full 12 months. again, this is the industry standard — and it seems fair to me.
I asked Direct Line to review their phone records to see whether you were misled, but they can find no record of the call you mention.
On October 4, it was explained clearly that you could suspend your policy, but that you would have to continue paying your monthly premium. On October 8, it was explained that the policy was a one-year contract.
You were told that while it was possible to cancel for a fee if no claim had been made, this was not possible once a claim had been made.
It was suggested that you could transfer the policy to a new car for a fee.
Given the timescale, you would have had plenty of time to cancel any new policy you had taken and revert to Direct Line.
On October 9, Direct Line discovered that you had cancelled your direct debit. as a result your policy cover was cancelled on November 25, but you must still pay.
I asked you whether you could provide any evidence of another phone call where you were given different advice, but you have not come back to me.
my only thought is that you may have asked a phone operator about cancelling without making it clear that you were in the process of making a claim.
On the bright side, Direct Line has paid your £500 claim plus the £2,000-plus claim from the other driver and will continue to cover any subsequent claims arising from that accident. ON MAY 19 last year, I moved my phone from the Post Office to TalkTalk. The Post Office sent a final bill for £21.79, but the same letter also said I was in credit and they would send a refund within 14 days.
I phoned the Post Office to be sure I did not owe any money and was told I was due a refund. I also asked my neighbour to check the phone bill because at the age of 80 I have never been in debt in my life.
I never received this refund, but on December 30 I received a letter from a debt collector demanding £ 39.79 for an unpaid Post Office bill.
I phoned the debt collector, but they insisted I pay it. My son spoke to them about the £18 administration costs and they cut the demand to £29.79, which I paid with my bank card.
Mrs M. F., Stratford-upon-Avon. WheN you contacted the debt collector they should have investigated your claim that you did not owe the money rather than continuing to demand that it be paid.
You have sent me copies of the final bill from the Post Office and, as you say, this clearly says: ‘as your final bill is in credit we will automatically refund you the balance within approximately 14 days.’
You can’t get clearer than that. The Post Office agrees.
however, this was, in fact, a ‘system error’ — and you did owe money. It was because of this conflicting information that you called the Post Office to confirm what the situation actually was.
But in that call they again told you that you were in credit. You couldn’t really be expected to do much more to clear up what you owed.
So, I can only imagine your distress when you were suddenly approached by debt collectors and told you had money to pay.
The Post Office has now repaid you the £ 29.79 and rounded the total up to £50 as a goodwill gesture.