Legal problem ref: insurance

[Sparks!]

This is a bit long and legally, so boring as fuck but I need some advice.

As most know, back in August I bought my WR400 Supermoto.. I needed to add this to my R6 policy, which CIA Insurance won't do. So fair enough, I cancelled my policy and went to Insure MCE (much better service)...

About 2 weeks later I get a letter from CIA with my initial cancellation letter returned, I forgot to sign it.. I signed it and posted it back out first class for them. Heard nothing back from then so thought it was all sorted and no need to worry.

Looking at my bank account, the direct debit for the insurance fee was still there, well I had cancelled the policy so didn't want to pay the direct debit for it (quite rightly too!) well they took the money, but immediately returned it back in, so I assumed that everything was fine now etc.

Well, today I get a letter about "missed direct debit payment" asking me to call and pay them the amount.. WTF?

So, I call them and they tell me the policy wasn't cancelled until 16th September and as such I had to pay the payment... no chance! I called CIA and spoke to them, I told them they had the letter mid august so should have dealt with it promptly, they told me it wasn't cancelled until 28th August... SO even then I shouldn't be charged the September payment?

Well CIA seem to agree with that, but he went on to tell me that it was out of their hands and there really was nothing they can do he then explained to me why the credit company are chasing me for the money, apparantly when you cancel they take into account the amount already paid, and then the outstanding is paid back by CIA or something... and that the amounts didn't match up so they would have to chase for the remainding money owed to them, FROM ME.

Well I then asked how the payments are taken, i.e. I pay my deposit which is the first 2 months ahead, then the next payment is for the month ahead i.e. at the end of January I would pay for February's insurance... is that correct? CIA seem to agree although he was a bit confused at how I tried to explain it

So if I cancelled my insurance policy on 28th August, should the credit company be trying to take a payment from me on the 23rd September??? That payment would be for Octobers insurance, not augusts? if that makes sense.. As I paid the amount on 23rd (ish) of August (against my will actually!)

If anyone actually made sense of any of the above, are they right to be taking an extra payment from me despite cancelling the policy last month?
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Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes

[tgabber]

Hmmm, as far as I understand it, the cost of insurance is worked out on an annual basis, and then you can have an option to pay that annual sum by monthly installments.

The catch when you cancel a policy is that if you are say six months into the year then you don't save six months money as there is a sliding cancellation scale (which varies from company to company) but with six months left to run you might typically only save say 30% of the annual fee. So if you were paying by monthly installments you might have to continue until you'd paid another 20%.

I think that's the way it works. Damn unfair but what can you do?
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"It's all about dislocating expectation"
Kawasaki KMX125 -> Aprilia RS125 -> Kawasaki ZZR600

[Kickstart]

Hi

The installment plan is just a load, complete with interest.

You will have an amount to be returned on cancellation of the policy. The amount you will get is the difference between what you have paid and the amount of insurance you have used plus the interest. Likely to be nothing or a negative amount.

So yes they can chase you for the money you owe, and if you do not pay up they can chase you through court.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[Sparks!]

I specifically asked CIA this in a letter, they said I would have to pay the august one but that should be all

They are fucking wanker money grabbing cunts, I can see why people don't pay insurance, those people are the real "winners" in this game
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Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes

[Ste]

When you take insurance with monthly payments you are not buying insurance month at a time, you are buying the years policy and a loan which is paid monthly. If you half way through your years policy ring up and ask to cancel your policy you do not get 50% of what you paid at the start of the policy back, in the same way if you have a paying monthly policy and cancel half way through you still have to continue paying up to the amount they're willing to refund you for the cancelation.

So ring them and find out how much of your policy cost has been refunded due to the cancelation and how much you still have to pay in total.

You do hear about people having pay monthly insurance, their bikes get nicked at the start of the policy and they claim on their insurance but still have to pay (some) of the insurance costs.

[Sparks!]

I wouldn't be quite so bothered if CIA hadn't told me a load of lies about what I had left to pay.

So I have to pay this extra payment, you telling me they might want MORE after that????

Fuckwits
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Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes

[hustler]

The problem is the credit company as much as the insurance one. Easier if you can to pay it all at once when it comes to insurance or put it on a credit card with 0% APR.
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As I said to that guy with the crutches and full camouflage gear, you can hide but you can't run.

[Ste]

They might do, depends on how much of a refund you've got for the rest of your policy. It is fair enough, you can't borrow £1,000 over 12 months, and after 6 months decide you want to pay them £500 to settle your loan.

[carvell]

If you were to purchase a years insurance with a loan from a bank, and you were paying £100 a month back to the bank for this loan, would you stop paying the bank this £100 because you cancelled the policy?

I don't think the bank would be willing to cover the extra, do you?!

It's the same in this case, only instead of the bank you're using a repayment scheme with the insurance company.
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Yamaha TDM 850

[Sparks!]

I thought it was DIRECT DEBIT not FINANCE

I assumed two different things, obviosuly not.

Will have to find out how much I "owe" them tomorow
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Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes

[carvell]

Direct debit is simply a method of paying someone who owns a bank account a certain amount of money per month.

Loans can be paid back with direct debit..
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Yamaha TDM 850

[Sparks!]

Okay I understand now, thanks for clearing it out..

From what I remember CIA bloke telling me then the credit company still want me to pay £250 odd quid...

I cancelled the policy over a month ago and still have to pay an extra £250, looks like I have no choice, so won't argue it any more.. but it's fecking annoying.

Least I know for next time anyway, my R6 and Wr are insured in the same way again but next time I hope to pay it in one lump sum (should be cheaper i hope, will be 20 with 2 years NCB and a cheaper bike)

I also lost about £450 on the deposits due to cancelling and reinsuring, technically my fault as CIA dont do multi bike policies, but in 1.8 years ive lost about £4000 to insurance companies due to various problems... if I rode without insurance at all I bet all you'd get if caught is a couple hundred quid fine or something!

I personally wouldn't do that, but I can see why some people do.

Anyway, next time round I'm paying in one go!

having to list a load more stuff on ebay to pay this lot off, so if anyone wants R6 bits, keep eye on my ebay
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Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes