What happens if I do this?
Discussion
Unfortunately, I am having to take my car off the road for a while as I am simply not using it and there is no point in paying extortionate insurance premiums for it to just sit there doing nothing.
I have declared it SORN by phone, and I am going to cash in the tax disc later on today.
My problem comes with insurance. Currently, I have frozen the policy so that I basically take a few months off and can resume the policy at any time.
I wanted to cancel it, but they want an administration charge of £60!
My question is, can I just cancel the direct debit and deny them all access to my bank account to effectively cancel the policy without paying an administration charge (which is taking the piss a bit)?
It sounds like a good idea in theory, but I don't want to get blacklisted, or done for non payment or anything like that.
Has anyone on here done the same thing? All advice would be much appreciated
I have declared it SORN by phone, and I am going to cash in the tax disc later on today.
My problem comes with insurance. Currently, I have frozen the policy so that I basically take a few months off and can resume the policy at any time.
I wanted to cancel it, but they want an administration charge of £60!
My question is, can I just cancel the direct debit and deny them all access to my bank account to effectively cancel the policy without paying an administration charge (which is taking the piss a bit)?
It sounds like a good idea in theory, but I don't want to get blacklisted, or done for non payment or anything like that.
Has anyone on here done the same thing? All advice would be much appreciated
SD1992 said:
Pints said:
Does your car not have to stay insured, even though it's SORNed? (Recent change in law.)
Wait... what? I thought the rule was, if it wasn't insured it had to be SORNed?
Problem is the admin charge will be there in the T&C's that you signed up to, so if you just cancel the DD I expect they will come after you for it via whichever channels. Would also be bad as they will cancel your insurance which you would then have to admit to future insurers.
SD1992 said:
Wait... what?
I thought the rule was, if it wasn't insured it had to be SORNed?
You've got it. If you have a vehicle is taxed it HAS to be insured or you receive a Failure to Insure FPN, £50 rising to £100 if after a certain period. Once the car is SORN'd insurance is no longer mandatory.I thought the rule was, if it wasn't insured it had to be SORNed?
)So if my car is SORNed, I call up the insurance company, start a policy and then go tax it and thats grand. You need to show the car is insured before it is taxed anyway surely?
So the only difference these new rules are if the car is taxed and your insurance runs out you need to SORN it then and there and then re-insure it so they make money of you handing in your old cash disk and paying for a new one?
So the only difference these new rules are if the car is taxed and your insurance runs out you need to SORN it then and there and then re-insure it so they make money of you handing in your old cash disk and paying for a new one?
SD1992 said:
Thanks guys, glad I won't be getting a massive bill!
Back to the OP, is just cancelling all direct debits a bad plan?
Yes - you have a contract with the insurer which includes their admin. charge if you want to terminate early. Cancelling the DD could/would put you in breach of contract.Back to the OP, is just cancelling all direct debits a bad plan?
The admin charge sounds a bit harsh to me. When I had our replica Model A Roadster, i was insured with Classicline and when I took it off the road, I converted to 'laid-up' insurance, which was only annually £75. I did not get charged any admin fee whatever; not only that, but as the amendment was made before the end of the policy year, they ensured that my subsequent renewal did not incur me any extra expense. This all ended up as if I had renewed as 'laid-up' on the renewal date. It must have been a headache for them, but they were very helpful. Your company sounds like a harsh bunch. :thumbdown:
It's bound to be in the terms you agreed to. Fairly std. practice now, although amounts vary.
In short, yes they can enforce it and collect, one way or the other.
Have you asked if they'll provide a 'laid-up' policy, ie maybe just fire/theft but excluding on-road use. Some used to. However, there still might be an admin. charge, although might be less than that quoted for cancellation.
In short, yes they can enforce it and collect, one way or the other.
Have you asked if they'll provide a 'laid-up' policy, ie maybe just fire/theft but excluding on-road use. Some used to. However, there still might be an admin. charge, although might be less than that quoted for cancellation.
lionrampant said:
Cancelling the DD won't work. The insurance company will still come after you for it.
This. A DD must be cancelled not only at the bank, but by written notice to the company concerned - I found this out the hard way with a policy that the OH stopped but hadn't done the proper cancellation bit. I ripped into them but their accounts department put me right and I ended up a bit embarrassed but much the wiser. (for info, it was a Royal London home cover policy)SD1992 said:
My question is, can I just cancel the direct debit and deny them all access to my bank account to effectively cancel the policy without paying an administration charge (which is taking the piss a bit)?
No. You have bought an 12-month policy, not a rolling monthly policy. The fact that they have given you credit to pay it monthly has no bearing.Gassing Station | General Gassing | Top of Page | What's New | My Stuff