My insurance company took money from my account despite the policy being cancelled - what should I do?
12 months ago I got rid of an old Nissan that I had been driving sporadically for the previous year. Obviously in getting rid of the car I cancelled the insurance and received written confirmation as such. This April I was surprised to receive a renewal notice for the insurance. On checking with my bank, it appears the insurers had withdrawn £400 for the year in which I did not have the car and thus did not want insurance. On speaking to the insurance company, they stated that this was a clerical error; they mentioned that one of their staff had reactivated the account.
They have offered to reimburse me for the cost of the insurance, which they have done, and also offered a modest token by means of compensation (£80). I am somewhat appalled that notwithstanding the fact that if I had not checked my bank account to confirm that the policy was closed, an insurer can manage to reactivate your policy and so withdraw payment. What are my options?
They have offered to reimburse me for the cost of the insurance, which they have done, and also offered a modest token by means of compensation (£80). I am somewhat appalled that notwithstanding the fact that if I had not checked my bank account to confirm that the policy was closed, an insurer can manage to reactivate your policy and so withdraw payment. What are my options?
Asked on 18 May 2010 by LillaW
Answered by
Dan Harrison
That does sound like a worrying event. However, it's not that uncommon, especially with policies that 'auto renew'. There are two things you can do, depending on how strongly you feel. The insurer has admitted their genuine mistake, refunded your money and made a goodwill payment, so you can let it go and put it down to experience. Alternatively, if you still feel strongly, you can get in touch with the Financial Ombudsman to see if you can launch a more formal complaint: www.financial-ombudsman.org.uk/ It's up to you to decide whether you feel strongly enough for the time and effort that it would take up.
Tags:
insurance
consumer rights
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