Car Insurance Direct Debit

randomnumber1

I set up to pay my car insurance over 6 months by direct debit. The 6 months is now up. Do I need to cancel the the direct debit or will it stop automatically?

Thanks

BuffyBot

If you've paid all the payments, there will be nothing for the insurer to debit. As such, there would be no more payments for them to take. You can still cancel the mandate, of course, if you want to. In theory, there is no reason you have to, however.

It's possible you're thinking of a standing order (which is something you set up, not a third party) which would continue to pay X amount a month until you tell the bank otherwise.

galwayjohn89

Some insurance policys autorenew if paid by direct debit. Just something to keep an eye out for.

coylemj

Vuzuggu wrote: »

Some insurance policys autorenew if paid by direct debit. Just something to keep an eye out for.

I don't think that applies to motor insurance. You get a renewal notice in the post and if you do nothing, the policy lapses.

galwayjohn89

coylemj wrote: »

I don't think that applies to motor insurance. You get a renewal notice in the post and if you do nothing, the policy lapses.

No, I know Liberty auto-renew if you pay by Direct Debit. They send you the renewal and if they don't hear from you they presume you accept the renewal

randomnumber1

Thanks guys

dahamsta

AXA also auto-renew, at least since last year. No doubt it's covered in Ts&Cs but a snaky way to do business imho.

Corvo

Yeah I'd watch out for the auto-renew. Too many switch companies and are then forced to chase the previous insurer for Direct Debit's taken and you could be waiting for a few days before it is re-imbursed.

hegarty147

hey guys just on this. I pay my car insurance by direct debit but my renewal is up in august. I recently had a third party claim against me which has been sorted. My question is I am going away for two years and I want to cancell my car insurance immediately but I was wondering will I be liable for the payments until august since they have paid a claim for me ?

marcus2000

Cant speak for all insurers but generally, when you have a claim, you get tied in for the year, so if you cancel prematurely, you will still need to pay the entire premium!!!!

dahamsta

I'm not aware of any insurers that insure month to month, you only /pay/ month to month as a "convenience" and you contract for the full period, usually a year. Claims are irrelevant.

marcus2000

If you cancel your policy midterm and have paid in full, you could actually be entitled to a Return Premium (partial refund), depending on your time on cover (It's normally pro-rata). Similarly if you pay month to month. You wont be entitled to any refund but also there will be no obligation to pay the rest of the premium.....(Normally a Large initial payment and upfront loading is to cover cancellations)

However, If you have a claim, it will void any refunds, and you will be obligated to 'continue' to pay the full premium to renewal date.

dahamsta

Fair point, forgot about that.