Jalexa:

Coyote:

Oh and please don't say 'I didn't get them' [the renewal terms] because it's irrelevant [and boring]

I agree with your general sentiments on this but not automatically the above, not having the AA T&Cs to scrutinise.

Some T&Cs I have seen do state that renewal terms will be sent. Perhaps there is an issue here concerning deemed receipt of documents the sender asserts sent. Since this is a consumer forum I would want to assert that in my experience the frequency that financial organisations communications claimed to have been sent but didn't arrive is significantly higher than the rate at which Royal Mail claim to lose correctly addressed letters.

I have drawn my own conclusion about that.

Me too. Perhaps it's more a case of communications claimed to have NOT been received are significantly higher than the rate at which Royal Mail claim to lose correctly addressed letters.

Let's not forget that people DO lie to get themselves out of situations. If people are so brazen to submit claims for hundreds of thousands for an accident only to be found dancing around the place then there's there'll be no problem in the average joe saying 'well I never received it'.

Also the Insured should know when their policy is due for renewal. IF they haven't received it, why wait until 11 days AFTER the due date to sort something out? There are duties on both sides. Had the Insured '''not received''' the renewal notice and this not have been a tacit renew policy and a claim were to arise within that period there would STILL not be a leg to stand on. The Insurer must send renewal invitation well before the renewal date but they don't have to keep reminding the Insured to renew. That's their responsibility.

Coyote:

Oh and please don't say 'I didn't get them' [the renewal terms] because it's irrelevant [and boring]

I agree with your general sentiments on this but not automatically the above, not having the AA T&Cs to scrutinise.

Some T&Cs I have seen do state that renewal terms will be sent. Perhaps there is an issue here concerning deemed receipt of documents the sender asserts sent. Since this is a consumer forum I would want to assert that in my experience the frequency that financial organisations communications claimed to have been sent but didn't arrive is significantly higher than the rate at which Royal Mail claim to lose correctly addressed letters.

I have drawn my own conclusion about that.

Sorry I don't understand the confusion:

"I then called the AA to cancel the existing policy who informed me as my new policy had already started I would be subject to administration charges."

So you didn't inform them that you didn't want to carry on with the insurance contract prior to the renewal date. You were on cover for 11 days and had received your renewal terms in good time before the due date. (Oh and please don't say 'I didn't get them' because it's irrelevant [and boring])

So,
i) as this is a rolling contract and you had received documents prior to the renewal date why did you not contact the insurer to inform them that you didn't wish to proceed with their terms?

ii) Why are you moaning because you have been charged a fee for cancellation? The 14 days is irrelevant. You want to cancel it because you found it cheaper elsewhere (AFTER 11 DAYS) and not through the fault of the contract. Would you still be whinging if you had to make a claim within those 11 days that you had 'forgotten' to look for quotations in? No... of course not!

iii) Not quite sure why you used AA in the first place however; as much as I don't rate them I can't see what they've done wrong here?

Hi there,

Called the AA to find out the following line in their terms and conditions specified the charge

"This refund will be subject to a proportionate charge for the period of cover You have received and a £20 administration fee."

even though I was originally told the charge for canceling each policy was £25. They then checked the cancellation to find that according to them I had been charge £20 for each cancelation, but the calculation for the 11 days cover I had received was calculated incorrectly, so I should get about £10 back.

Not sure how much I owe them for the days cover I received is calculated but if I was charged £61 for both policies, £40 of which was due to the administration fee then the rest must have been for the 11 days cover, meaning that for 11 days home and contents cover I paid £21.

David

I have never read such a complicated and confusing cancellation clause about the 14 day period. If you asked to cancel from the renewal, the AA cannot make any charges. Having worked in the industry we were under strict instruction to refund in full any policy that was cancelled from inception or renewal, if the policyholder cancelled within 14 days and asked for cancellation from inception or renewal date.

The problem sometimes arises where a policyholder just asks to cancel on the day they phone, rather than under the 14 day period. My own feeling on this, is that it is considered good practice for the Insurer to discuss the options with the Policyholder. E.g. Cancel from inception/renewal within 14 day cooling off period, therefore no payment due or cancel from today with relevant time on risk and charges. Sometimes when Insurance staff did not offer this choice, following any phonecall or complaint, we just backdated the cancellation to inception/renewal to refund or remove the premium/changes. Obviously we checked date of first cancellation instruction to make sure within 14 days before we did this.

At the end of the day, we are talking about Home Insurance here. If it concerned Motor Insurance, the situation would more complicated, due to you having a legal responsibility to Insure a vehicle.

david_ste:

Oh well, possibly an expensive lesson but at least you now know the importance of Terms and Conditions going forward, as will readers of the thread.

One other point, have you scrutinised AA compliance with the renewal notification requirements probably mentioned elsewhere in the T&Cs?

Just had a look at the terms and conditions.

"2 Cancellation

"2 Cancellation

Procedures are explained below dependent on who invokes cancellation.

You

If You need to cancel your policy contact AAIS on 0870 160 0139 or write to AA Insurance Services, PO Box 2AA, Newcastle NE99 2AA.

You need to cancel your policy contact AAIS on 0870 160 0139 or write to AA Insurance Services, PO Box 2AA, Newcastle NE99 2AA.

You will, for a period of 14 days from the date You receive Your policy documentation or the date You enter into the contract (whichever is later), have a right to cancel this policy and receive a refund (unless You have made a total-loss claim). This refund will be subject to a proportionate charge for the period of cover You have received and a £20 administration fee. Where cover has not commenced prior to the end of this 14-day period You will be entitled to a full refund of the premium You have paid.

Beyond the above period, You may cancel this insurance at any time. No refund will be allowed if a claim has been made or has arisen under this insurance prior to such cancellation during the current period of insurance. If You have chosen to pay Your annual premium by instalments You must continue to pay Your monthly Direct Debit. Any return of premium due will be based on a pro rata calculation for the period of cover. If You cancel Your policy after the 14-day period has elapsed, we will charge a cancellation fee of £50."

will, for a period of 14 days from the date You receive Your policy documentation or the date You enter into the contract (whichever is later), have a right to cancel this policy and receive a refund (unless You have made a total-loss claim). This refund will be subject to a proportionate charge for the period of cover You have received and a £20 administration fee. Where cover has not commenced prior to the end of this 14-day period You will be entitled to a full refund of the premium You have paid.

Beyond the above period, You may cancel this insurance at any time. No refund will be allowed if a claim has been made or has arisen under this insurance prior to such cancellation during the current period of insurance. If You have chosen to pay Your annual premium by instalments You must continue to pay Your monthly Direct Debit. Any return of premium due will be based on a pro rata calculation for the period of cover. If You cancel Your policy after the 14-day period has elapsed, we will charge a cancellation fee of £50."

You may cancel this insurance at any time. No refund will be allowed if a claim has been made or has arisen under this insurance prior to such cancellation during the current period of insurance. If You have chosen to pay Your annual premium by instalments You must continue to pay Your monthly Direct Debit. Any return of premium due will be based on a pro rata calculation for the period of cover. If You cancel Your policy after the 14-day period has elapsed, we will charge a cancellation fee of £50."

From the last sentance it looks like I may have a case, will call them tonight and find out.

HI there,

I called the financial services authority and was advised that even though I was within the 14 day cooling off period I was still subject to their terms and conditions. Which at the moment I imagine must mention the £25 per insurance policy (Will have a look and let you know).

Hope this helps anyone else though who may be thinking about changing their home insurance.

david

They may say you asked to cancel on the day you phoned. Just say that this was a mistake, you were wanting to cancel from renewal under the 14 day period

Thank you.

Will call this evening and let you know how I get on.

david

So you were within 14 days, so can cancel under the cooling off rights in the policy and claim a full refund. I did look at the AA policy and under the cancellation bit at the back of the wording, the 14 day period is mentioned. The wording is rubbish, or designed to confuse. Suggest the AA gets the Plain English Society to review the wording.

huckster

Hi there Huckster,

Thank you for the reply.

I was charged for 11 days so I presume I was 11 days in to the new policy.

David

If you cancel within 14 days of renewal, you are within the 14 day cooling off period, so you can cancel from renewal, with a full refund, providing you have not claimed. If cancelled after 14 days, yes the AA can charge the admin fees and time on risk. Such charges are now common place within the industry.

When did you phone to cancel, was this within 14 days of the renewal date? E.g. If renewal date 1 July, you have up to the 15th July to cancel with full refund.

The 14 day period is required under FSA rules, so make sure you complain. Details below. Also ask for any expense i.e. phone calls, you have incurred.

If your complaint is about AA Insurance Services
There are several ways you can contact us.
• Phone: 0870 160 0139
• Email: Custcare AT theAA.com
• Post: The Customer Care Unit
AA Insurance Services
PO Box 2AA
Newcastle upon Tyne
NE99 2AA
• Fax: 0292 072 5018

huckster

..... that I previously had house and content insurance with the AA.

Just a quick warning for anyone looking to switch house and contents insurer.

I recently changed my house insurance provider from the AA using the comparison site formula on this site. The house and contents that I was paying the AA less than halved with the new provider.

I then called the AA to cancel the existing policy who informed me as my new policy had already started I would be subject to administration charges. This came to a total of £25 for buildings plus £25 for contents all in all it cost me over £60 to cancel as I still had a few days on my policy that I had to pay for since the renewal, something that left me feeling very disappointed and will ensure I never use the AA ever again.

Even with the £60 charge I still win though, as their previous deal was so bad, made the mistake of taking it out at the time of getting a mortgage (first time buyer).