Email threatening debt collection agency

A question about : Email threatening debt collection agency

I took out motor insurance policy with elephant last year which expired in april 2012. At renewal I found a cheaper supplier and took out a new policy with swift insurance. I knew elephant couldn't take a payment for the renewal because my debit card had expired so as far as I was concerned no payment = no insurance right? However they have now written to me to say they cancelled my policy on 14th may and I now owe the nearly 70Ј including administration fee. As far as I'm concerned I took the policy out for a year and didnt agree to it rolling from year to year. So my question is, do I have to pay up? A

Best answers:

• Another alternative may be to prove to Elephant that you have been covered elsewhere. On the basis that you have other cover Elephant may refund the premium you have paid.
• Hi Wobetide, thank you for your query regarding e-mail threatening debt collection agency. Whether the insurance company can charge you for cover following your renewal will depend on the terms of your agreement with them but most insurance providers will automatically renew if you do not contact them to cancel and will then charge a cancellation fee or the renewal fee. You need to check the terms of the original insurance agreement. The fact that the insurance company could not take the instalments from your account will not mean you do not owe the money. If you cannot pay the amount in one payment you could negotiate an instalment plan and there are template letters which you can use on www.adviceguide.org.uk.
  Hope this is of some assistance