Admiral Mid-Term Motor Cancellation = £45!

mentat72
mentat72 Posts: 305 Forumite
First Post Photogenic First Anniversary Combo Breaker
in Insurance & life assurance
Hi all, just called up Admiral to cancel my motor insurance as I have sold my car.

The cancellation fee was £45! :eek: :eek: :eek:


While I'll be getting back a fair amount as the policy is December to December, I think that charge is extortionate. So, just as a warning don't take up Admiral car insurance if you may be looking to cancel before the term ends.

Thieves.
Money can't buy friends, but it can get you a better class of enemy - Spike Milligan.
«13

Comments

  • battyboimatt
    battyboimatt Posts: 621 Forumite
    First Post First Anniversary Combo Breaker
    I would never touch Admiral with a barge pole, I had a policy with them once, and phoned to cancel told it would be £35, paid this and then months later got a letter from a debt collector saying I owe Admiral £135 for my insurance that I had canclled, phoned Admiral and requested tape, funny enougth it was there alternative contact centre and they couldnt find anything, paid up and will never touch them again
  • dunstonh
    dunstonh Posts: 116,320 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I think that charge is extortionate.

    Its within the typical tolerance accepted by the FOS. Seems reasonable to me seeing as you wish to break the contract.
    So, just as a warning don't take up Admiral car insurance if you may be looking to cancel before the term ends.

    Virtually all make a cancellation charge now.
    Thieves.

    I'm not sure why you can call them that seeing as it is a published fee you are made aware of.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mentat72
    mentat72 Posts: 305 Forumite
    First Post Photogenic First Anniversary Combo Breaker
    It's the anger more than anything that makes me use the word 'Thieves'.

    I just don't see that £45 is a fair amount to break a contract, I could understand £10 or £15 to cover 'admin' costs. But £45 is taking the pee.

    If I had known up front about the £45 charge I would not have renewed it with them and will not deal with them in future.
    Money can't buy friends, but it can get you a better class of enemy - Spike Milligan.
  • dunstonh
    dunstonh Posts: 116,320 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I just don't see that £45 is a fair amount to break a contract, I could understand £10 or £15 to cover 'admin' costs. But £45 is taking the pee.

    You are also paying for loss of profit as well as a part recovery of the set up costs. Remember that the annual premium includes those but if you dont pay for the year, those costs still have to be met by the insurer.

    It is fair when you consider what goes into car insurance. Plus the very low profit margins that exist. Indeed, many are running at a loss.

    If I had known up front about the £45 charge I would not have renewed it with them and will not deal with them in future.

    You better be prepared to have no car insurance or find your choice of insurer is much restricted. Indeed, you may find that the cost of insurance each year ends up being more than the £45 because of that restriction on not using providers that charge a cancellation fee.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bluebash
    bluebash Posts: 1 Newbie
    Just a note to say that I wrote to complain about being charged a £45 cancellation fee and received a reply that 'for good customer relations and to recognise my long standing custom with Admiral' they have decided to write off the outstanding amount. So it's worth querying it and not just paying up and grumbling....
  • TheOne
    TheOne Posts: 137 Forumite
    Just got a letter today, 16th of December, from Admiral saying that they will be cancelling my car insurance on the 4th of December!!!!!!!!!!!! So I phoned them to ask what the heck was going on. As I understood (I couldn't understand the guy too well!) they were saying that it was because they tried to take a payment in November of £51.00. I asked what this amount was for as my quote was for about £425 including their monthly payment plan ("tax") etc etc (looking for this now to confirm) which would only work out to about £36 as month. So I asked him what's happened as £51 a month adds up to £612!!! All I got the the bloke on the phone was "We haven't changed anything" So he's either completely uninformed or lying. They're now saying I owe them £99.93 but have no idea how it now adds up to this amount?? Grrrrrrrr!!!!!!! Useless ******ers!!!!!
  • TheOne
    TheOne Posts: 137 Forumite
    So, I phoned Admiral this morning, as I thought I'd better just pay up this £99.93 and get it sorted and complain later, so at least I have car insurance. So I'm speaking to the guy on the phone (an English guy this time, woooo!!!) ready with a card to pay off the £99.93, and he then tells me I owe them about £380!!! !!!!!!!! Where the hell am I supposed to get this sort of money from??
  • glitter123
    glitter123 Posts: 495 Forumite
    Its not just cancelling they charge for. I bought a new car last year and Direct Line charged me £35 admin fee for changing.
  • dunstonh
    dunstonh Posts: 116,320 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    glitter123 wrote: »
    Its not just cancelling they charge for. I bought a new car last year and Direct Line charged me £35 admin fee for changing.

    Nothing wrong with that. They publish that they have an administration charge on amendments.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • icheyne
    icheyne Posts: 5 Forumite
    I'm sorry but these charges are very cheeky. No one expects their policy to be automatically renewed and for unreasonable mid-term cancellation fees to be applied.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards