Privilege Insurance and Cancellation Chargers

343_TheGuiltyProphet · 30 March 2015 at 10:10PM

Hi there, I have a quick qustion. My insurance with them got cancelled and now they are trying to make me pay the rest of my insurance term in full and are not offering me a payment option. This is currently at £112.00

The fact I'm no longer with them makes me wonder why I should have to pay for a service I'm no longer getting?

forgotmyname · 30 March 2015 at 10:17PM

Because they will pass your details onto debt collectors and it may appear on your credit file which could prevent you getting credit in future.

Debt collectors will send threatograms and pester you until you pay or for the next 6 years?

If the charges are not correct then make a complaint.

343_TheGuiltyProphet · 30 March 2015 at 10:24PM

Okay thanks. Is it right that I'm expected to pay the rest of my insurance when it was cancelled before the end term? My friends have had their insurance cancelled and this never happened to them.

Quentin · 30 March 2015 at 10:42PM

The policy will set out what happens should they cancel your policy.

If they are breaking the policy conditions then dispute the charges they now want off you.

(The circumstances of your friend's cancellation - or their policy conditions - may be different to yours, and are irrelevant to your cancellation)

InsideInsurance · 31 March 2015 at 9:30AM

343_TheGuiltyProphet wrote: »

Okay thanks. Is it right that I'm expected to pay the rest of my insurance when it was cancelled before the end term? My friends have had their insurance cancelled and this never happened to them.

Have you made any claims?

Typically the cost of cancelling a policy is made up of different elements, a premium for the policy, possibly another for add ons, a insurer cancellation fee, commission claw back etc etc. The broker/ insurer must give you a breakdown of the charge if you ask for it. You can then double check that they are correctly applying the terms of your policy.

dunstonh · 31 March 2015 at 9:31AM

343_TheGuiltyProphet wrote: »

Okay thanks. Is it right that I'm expected to pay the rest of my insurance when it was cancelled before the end term? My friends have had their insurance cancelled and this never happened to them.

It is not normal for you to have to pay the annual premium in full if you cancel unless you are in the last few months or if you have had a claim on the policy. Can you verify if either of these apply to you?

343_TheGuiltyProphet · 31 March 2015 at 9:54AM

It was about 3 months before the end.

Quentin · 31 March 2015 at 9:56AM

In that case any cancellation fees probably eat up any premium refund.

But ask them for an itemisation and take it from there.

dunstonh · 31 March 2015 at 10:29AM

This is what they say on their website:
If you cancel after 14 days on cover, we will return any premium paid less a charge for the number of days for which cover has been given and an administration fee of £53 for Car Insurance and £10.60 for Breakdown Cover, where selected. All figures quoted are including Insurance Premium Tax where applicable.

*If you have made a claim or one has been made against you during the period of cover, you will not receive a refund.

343_TheGuiltyProphet · 31 March 2015 at 10:47AM

Thank you all very much for looking into this for me. I've managed to set up a payment plan with them.

agrinnall · 31 March 2015 at 2:59PM

I read the OP, as did Quentin in post #4, that the insurance was cancelled by Privilege not by 343, so any clause relating to cancellation by the policyholder is probably not relevant.

Privilege Insurance and Cancellation Chargers

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