# Cancelling Car Insurance.



## el romeral (May 8, 2012)

I just found out about this ridiculous "two month rule" regarding cancellation of car insurance with Spanish companies. The policy I am cancelling is up for renewal 17th January. Two weeks ago I went to my bank and told them to cancel the direct debit. I received a paper copy of this instruction. I have not yet spoken to the insurance company, but will do so when I get back next week.
I have heard that this particular company are awful for attempting to get money from customer's bank accounts. It was the lady in the bank who told me. 

Am I likely to have any problems or will they not get near my money since I have already instructed the bank?


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## Lynn R (Feb 21, 2014)

The two months' notice rule doesn't apply only to car insurance, it's for all types of insurance (house cover, health insurance, etc).

If the company do take the renewal premium from your account despite your having given notice of cancellation, all you have to do is to inform your bank within 10 working days and they will take the payment back and credit your account. This happened to me a few years ago and the money was back in my account almost immediately. I just showed the bank a copy of the letter I'd sent giving notice of cancellation. This applies to any type of direct debit taken without your permission.

Incidentally, back in the UK I was also unable to cancel my house insurance without giving the same amount of notice. I wanted to keep the cover right up until it was sold so ended up paying the insurance for a couple of months when I didn't even own the house, much to my annoyance.


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## el romeral (May 8, 2012)

That is reassuring thanks. I will still try to contact them also. Bit scary once companies get your bank details, as they seem to have full right of access.


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## Lynn R (Feb 21, 2014)

el romeral said:


> That is reassuring thanks. I will still try to contact them also. Bit scary once companies get your bank details, as they seem to have full right of access.


It's the company you are supposed to give notice to rather than the bank, so they might still have a case to pursue you for the money if you give them less than the required 2 months, if they so choose. Hopefully they won't.


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## snikpoh (Nov 19, 2007)

el romeral said:


> That is reassuring thanks. I will still try to contact them also. Bit scary once companies get your bank details, as they seem to have full right of access.


Simply telling the bank not to pay a (legal) bill simply won't cut it! 

You have to cancel the automatic renewal of your existing policy with two months notice - this will have been stipulated in the contract you signed (ISTR).

The insurance company might try and come after you for the money as you will have been deemed to be in breech of contract.


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## el romeral (May 8, 2012)

Nightmare. Oh well, could be in for a bit of a battle then....


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## gus-lopez (Jan 4, 2010)

snikpoh said:


> Simply telling the bank not to pay a (legal) bill simply won't cut it!
> 
> You have to cancel the automatic renewal of your existing policy with two months notice - this will have been stipulated in the contract you signed (ISTR).
> 
> The insurance company might try and come after you for the money as you will have been deemed to be in breech of contract.


I've never signed any insurance contract whether for the vehicles or the house ?

On one occasion when I got the agent to get lower quotes 4 months prior to renewal which they did & I accepted & I even checked that they'd do the cancelling etc; & they instructed me too cancel d/debit , which I also did , I still got some [email protected]@@ from the company ringing me & being quite aggressive . Rang on numerous occasions , ranting . Until I lost my temper & told him where to go & got on to the company asking for the complaint forms.  When I mentioned it too the man in the agency he just said "tell him where to go, we do as they get on to us as well " 
I've even insured another vehicle with them 2 years back but only for a year & made sure I had it in writing long before renewal that I wasn't continuing as I had a comprehensive coverage quote, which they weren't prepared to offer , from elsewhere. That went without a hitch.


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