Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Why are they holding you liable for £900 - what reasons have they used for this and why do they believe you owe them that money if you did not accept their quotes?
Sorry got trapped at work..... don`t know why the want me liable nor if it`s legitimate. Since Oct 30th, however, my insurance I had coverage as I paid the deposit and the fee. just recently, on the submission of the documentations (driving license) they have started claiming an increase on fee which if what I am objecting.
Hi Ben, so that I am clear, is all the expertise I get? thanks
Hi sorry I was offline when you replied earlier. Just so I understand your situation better, can you tell me exactly what happened – did you ask for a quote, they provided one and then you never accepted it or took out the insurance? Or did you actually take out the insurance with them after they provided you with the quote?
Sorry, been in meeting all day. After the first phone call where, according to them I declared 2 full driving licenses drivers, the quote £1800. So I took on the insurance. On the exchange of the driving license, they increased it by £1200 as one was provisional. However, I have not signed yet and returned the credit agreement. Online they still quote £1800 for cases like mine (1 full and one provisional) and when I asked to pull out the deal, they threatened to have me liable for the cancellation fee of £900.
Hi Ben, can we please take it from where we left? Do I have a way out to this saga with the insurance? thanks
Hi, sorry we keep missing each other. The key here is whether you agreed to formally take out the insurance policy and also the reasons for the cancellation.
Once you take out the insurance policy, even if you do not sign the credit agreement, you will be bound contractually by its terms and you will have a contractual agreement with the insurance company. If you wanted to cancel it, or you were forced to cancel it because you did not provide the correct information, it will be treated as a formal cancellation and will be subject to the cancellation terms of the agreement.
You may find that most insurance policies have a cancelation period, perhaps of 14 days or so. Within which you can cancel the cover for any reason and without being liable for the premiums of the policy. You would still have to pay a cancelation fee but that will only be a low sum, maybe £40-50, certainly not £900.
However, if you were forced to cancel after that initial cancelation period, then you could be liable for all or part of the premiums for the full year. It could be that you provided them with the incorrect information, which increased the premiums and you were then forced to cancel this. This will still be seen as your error and your decision to cancel because it was due to your initial error.
So you need to check whether there was a cancelation period and if you decided to cancel within it and also if you supplied the wrong information at the beginning, which forced them to amend the premium.
Finally, you could also consider calling their bluff, meaning that you cancel anyway and see if they really take you to court for the fees they are chasing you for. They may just threaten to take this further but never actually go as far as making a claim against you. If they do, you can always reconsider your options and decide how to proceed but until they do you cannot be forced to pay them anything.
Hope this clarifies your position? If you could please let me know that would be great, thank you