Car insurance nightmare - can I appeal or am I bang to rights?

[palborn]

Sorry this is so long;

I've had a policy with Direct Assurance (an online insurer) since the beginning of 2007. I received a renewal notice at the end of December which told me to pay by 18th January for the following years insurance. I am pretty sure I sent the payment off, however I did not send my RIB by registered post (which was definitely a mistake). To my horror I have today received a letter from them saying that as they did not receive my payment by the due date they had terminated my contract from 26 Feb. Not only that but they refuse to insure my car and also say I am now liable to pay them the full insurance amount of €380 as a penalty. This letter from them is the first I knew of it.

The letter refers to a clause in the conditions (interestingly enough not the correctly numbered one) that says:

"- En cas de non-paiement de la cotisation dans les dix jours de son échéance...nous envoyons une lettre recommandée de mise en demeure...Les garanties sont suspendues trente jours après l'envoi de cette mise en demeure;

- Nous résilions le contrat dix jours après l'expiration du délai de trente jours entraînant la suspension du contrat. La suspension de la garantie ou la résiliation pour non-paiement de la cotisation ne dispense pas le souscripteur de l'obligation de payer l'intégralité de la cotisation prévue au contrat pour toute la période de garantie en cours."

My understanding of this (but please correct me if I'm wrong) is that 10 days after the due date they should have sent me a registered letter formally demanding payment and then if the payment was still not received 30 days after sending this letter they can cancel the contract and make me pay the full amount.

My issue is that they did not send me this registered letter (I certainly haven't signed for one) and so can they now cancel my contract and demand the penalty?

I am completely gobsmacked and quite shaken by the situation as I had not even known my payment had not been received and have realised that for the last week we have been driving around uninsured.

Please tell me they can't do this. [:@] [:(]

[Boiling a frog]

[quote user="palborn"]

 

Please tell me they can't do this. [:@] [:(]

[/quote]

 

OK

 

They can.t do it,suggest you write back registered letter pointing out that you have never received their first letter  

[Chancer]

[quote user="palborn"]

...Les garanties sont suspendues trente jours après l'envoi de cette mise en demeure;

-
My issue is that they did not send me this registered letter (I certainly haven't signed for one) and so can they now cancel my contract and demand the penalty?

[/quote]

 

I dont know whether their terms are legal, which is probably  irrelevant given the cost of pursuing it but they state 30 days after having "sent" the letter.

It just shows what a stupid attempt at E-commerce French "direct" insurers are if you still have to pay by RIB and recorded delivery.

Your insurance is suspended not cancelled and should be reinstated when you pay the premium.

I tlooks like they sent you the renewal letter in accordance with the Loi chatel which is better than my town broker, You cannot get away from them that easily[6]

[Ninthace]

No that this helps your current situation but this may help others looking for insurance on the net.  I got a quote from Direct last year when shopping round for cheaper insurance for my Jeep.  I presented the quote at my current insurer's office in town (AXA) to see if they could match it.  It transpired that AXA and Direct are part of the same group and my agent said AXA would match the quote.  That way I got the best of both worlds - a cheaper insurance plus personal service from a local agent.

[palborn]

Thanks for the messages.

I have now insured through our local Groupama office and I am going to write a very strongly worded letter of complaint to Direct Assurance (sent by registered post of course!) and am most definitely NOT going to pay the premium.

[Ron Avery]

Why not ask your local Groupama rep to help you with this assuming you have told them you already had a policy for 2008?  They may be able to make a phone call or two or provide a suitable letter to clear the matter up.

I would not be too clever with your old insurer after all you have no proof of having paid them and you certainly have not provided them with adequate notice of cancelling your policy either.  If they take the legal route that could prove very costly for you and you might end up being refused insurance by other providers in the future.

[AnOther]

[quote user="palborn"]am most definitely NOT going to pay the premium.[/quote]Brave words but I hope you don't come to regret acting in what, IMHO, is perhaps undue haste.

I fear all you may have done is increased your chances of losing your €380 but I hope I'm wrong.

Good luck though and do keep us posted on developments.