Direct Debit Failure

Question:

I was involved in a small collision 2 days ago (I hit the back of the car which was in front of me) Damage was very minor here. When I phoned my insurance company they advised me that my policy has been cancelled because I missed 1 installment around 3 weeks ago.

The main problem here is that I wasn’t aware that payment didn’t go through and I wasn’t aware that I had no insurance at all.

Because I moved flats recently I have no internet connection so wasn’t aware of the email which they (1st Central) sent to me “cancellation notice” on x (10 days after missed payment) and nobody was even trying to contact me and ask why I missed my payment also no correspondence was sent to my old/new address?

Lady who was in the car which I hit complains about pain in her neck and says that her car had a huge personal value (old x). I don’t know what to do now. I admit that it’s my fault that I hit this car but can Insurance company cancel your policy so quickly?

I don’t know what to do next, I would not be driving if I would be aware that I’m not insured (at the time of the accident my pregnant wife was with me 8th month) Please can you help me out here with should I do? I said to this lady that I’m happy to pay for all repairs but she doesn’t even want to speak with me.

I’m also confused but this lady was very positive after the accident and now after this 2 days so is extremely aggressive and unfriendly I have a bad feeling that she will do everything to get as much compensation from me as possible but in this case I don’t think its fair and I have a strange feeling that this person is faking most of the things here.

Paula Says:

I’m afraid that the lady will probably report the matter to the police if you were uninsured. The fact that you were not aware that your insurance had been cancelled will not be a defence and you will be at risk of 6-8 points.

You will not be able to argue special reasons to avoid the points because the court will feel that it was your fault that the insurance lapsed due to the direct debit issue.

The motor insurance bureau will have to act on your behalf in relation to the claim for compensation.

Have you got any points on your licence already? If so, how many? Are you a new driver?

I maybe able to help you further if you tell me more.