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Car Insurance Rip Off
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Janna
Posts: 11 Forumite
I just bought a new car on Saturday. Yahoo. Really pleased with it. Searched websites to make sure I got the best deal on insurance and managed to halve it. Rang Budget to cancel my old insurance. There are two months left to go and because I have been paying for it on a monthly basis they are still going to charge me for the remainder of the credit agreement with a bit more on top for good measure.
I was expecting a rebate!!
I asked "Rashid" if I could speak to a manager because I wanted to register my displeasure. He refused. I think I asked the same thing about 20 times and each time he refused and said anyone I spoke to would tell me the same. I insisted I wanted to hear it from a manager and said that this practice should be reported to the financial ombudsman. Still he refused and kept flatly telling me I had to pay.
I said that I would cancel my direct debit and he would have a job getting it because I had no money in my bank account. I asked if he could send me a bill - I would need that to show to the ombudsman. He said he wouldn't and he'd just take it off my card! I checked with my bank and this is true.
Apparently this is legal practice. They will now take £70 from my bank for two months insurance I don't need.
Ouch!
I was expecting a rebate!!
I asked "Rashid" if I could speak to a manager because I wanted to register my displeasure. He refused. I think I asked the same thing about 20 times and each time he refused and said anyone I spoke to would tell me the same. I insisted I wanted to hear it from a manager and said that this practice should be reported to the financial ombudsman. Still he refused and kept flatly telling me I had to pay.
I said that I would cancel my direct debit and he would have a job getting it because I had no money in my bank account. I asked if he could send me a bill - I would need that to show to the ombudsman. He said he wouldn't and he'd just take it off my card! I checked with my bank and this is true.
Apparently this is legal practice. They will now take £70 from my bank for two months insurance I don't need.
Ouch!
0
Comments
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The insurer has done nothing wrong here. When you agreed to the cover you agreed to the associated cancellation conditions.
If I were you I would cancel the new policy you set up under your cooling-off rights, and change your insurer in 2 months time at your next renewal.0 -
Most insurance companies charge the full years premium for 10 months cover, pretty standard and would have been in your policy booklet.
The best route would have been just to do a change of vehicle under your current policy and then shopped around at renewal.0 -
Okay, fair enough. Too late this time. Still saved money anyhoos. Know better next time.0
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As said already, always best to do change of vehicle under existing policy, rather than change insurers mid-term.
You should have had cancellation scale detailed in the invitation letter at your last renewal date. Would expect to pay 100% of the premium, if only 2 months left.
Regards0 -
Couldn't just swap over my new vehicle because that then starts off a new 12 contract so whichever way you look at it, they win and they get lots of extra money.0
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No it doesn't!
You pay a pro rata increase in premium if the new car is more expensive to insure.
You get a refund if it's cheaper.0 -
ejones is correct and if you check under "Other Charges" on the back of the "Policy Payment Arrangement" document, page 3 of 16, with my Budget insurance, under "Other Charges" they may also charge an "Administration Fee" of £25 if you make any changes your policy after the first 14 days. Note it states "may" so it's possible they'd not charge the fee just for a vehicle change. But even that would be cheaper than the £70 for the early cancellation?0
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I have just had a problem with Budget over house insurance. Make sure you cancel them if you change insurers cos they still send you a bill and then a £20 + cancellation fee. My insurance started the day after, i.e one stopped the 10th and the other started the 11th but apparently I still had to pay. Wish I'd been more bolshy instead of giving in. I'll never go with Budget again.
Diane0 -
I have just had a problem with Budget over house insurance. Make sure you cancel them if you change insurers cos they still send you a bill and then a £20 + cancellation fee. My insurance started the day after, i.e one stopped the 10th and the other started the 11th but apparently I still had to pay. Wish I'd been more bolshy instead of giving in. I'll never go with Budget again.
Diane
You actually had a problem with being too thick to read terms, and not budget
Morons who don't read and then blame others are pathetic0 -
The letter Budget send does make it clear you need to tell them if you dont want to renew.Wish I'd been more bolshy instead of giving in. I'll never go with Budget again.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.0
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