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Hi My son before going abroad to Denmark to start working there he sold his car almost three months ago as now, he rang his insurance company Budget to cancel the insurance on his car and was told that as there was only two months left on the cars insurance he would not be entitled to a remittance and not to cancel the insurance as there would be a fee to pay of £20 and advised him to let the insurance lapse.
My son has now come over for a week and is sorting his post out.
Budget on renewal sent a letter to say if they did not here anything from him they would go ahead and renew the policy of over £400 for the car, which they tried to do, and the card company refused payment with out the consent of my son. A second letter reveals that they now want £20 for cancellation and admin fees, he rang them and after an heated argument my son said he will not pay the fee and had explained all details in november.
They now demand the DVLA log to show that it was sold and they will wave the £20 and sods law we cant find it.
I don't see why he has to prove that the car is sold. The car was sold to his mother in November which is insured with Budget also.
Do Budget have the right to demand the DVLA Log that now showes he is no longer the keeper.
I can't see them taking him to court for £20, and I don't see how they're going to force him to pay otherwise.
Has he told them they're still insuring the same car?
It reads as if he may have agreed to a continuous credit card payment method for renewal when he first took out the policy.
I've certainly never experienced an insurance company trying to renew a policy without my say so. They usually warn that cover will lapse if they don't receive the premium by the expiry date and the policy will be terminated completely after 14 days, or similar wording.
Not the case with most insurers I'm afraid when you pay by credit card or direct debit.
For the last few years my insurance has simply been renewed unless I say otherwise. Because I don't want to spend any more money than necessary I always get quotes from other companies before I let the policy renew, so I can cancel it if I find something cheaper.
This year I found one about £20 cheaper, so I phoned my current insurer & told them so they gave me a £50 Tesco voucher to stick with them - result!
If that's the case it seems a worrying trend. I would object to a company retaining my credit card details, let alone to spend as they wished without my prior approval.
My son explained that they tried to insure the same car twice, he will try ringing again today and get it sorted out.
There was a reply from DVLA to say he was no longer the keeper but its not to be found at the moment.
Found the acknolagment, so I will copy it and post it off for him, but the question still remains can they or do they have right to ask for it.
The part he kept would have been sent of to DVLA
to have received the acknolagment.
I am now wondering how long they keep card credentials of any one who insures this way.
If you pay for something like insurance with a card there is normally something in the T & C about them setting up a continual payment, you shuold have to sign to activate this.
I always pay by Direct Debit for stuff like insurance so that if I change my car mid year I don't have to go through the faff of canceling one policy & starting another, with monthly DD payments the monthly charge is usually just adjusted to cover the new car.
Also with a DD payment I can go online & cancel it at the end of a policy so that they can't just renew it without my express permission
I only recently switched to DD (I used to pay up front) but my insurer has always sent an instruction to let it know if I want to cancel or otherwise do nothing if I want to continue. Presumably, it would just invoice anyone who isn't using DD. The implication of that is that the absent minded could miss out on their right to cancel if the letter gets lost in the post.
I was under the impression that all insurers had linked access to the DVLA by computer, together with their own shared national register of vehicle insurance. If so, then Budget could have obtained the required information on current ownership quite easily themselves. TC.
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