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  • FIRST POST
    TristanHeard
    Tesco Car Insurance - Cancellation Fee £££
    • #1
    • 15th Feb 12, 4:21 PM
    Tesco Car Insurance - Cancellation Fee £££ 15th Feb 12 at 4:21 PM
    Hi,

    A little advice required. I have had my car insurance with Tesco for about 7 years. Recently with my wife being made redundant ad me being able to work from home we decided that we no longer needed 2 cars so we sold them both and opted instead for a nice sized family car.

    The new car is in my wifes name and she et up the insurance to cover is both.

    For this reason I no longer needed my car insurance with Tesco so cancelled the direct debit and informed them that I no longer owned the vehicle.

    They advised me that I needed to pay for the remainder of the month whihc is £14, no problem, then however they have now told me that I also have to pay a £30 cancellation fee on top!!

    I then get several letter through the post, the first one showing I owed them £14 which (and get this) includes the £30 cancellation fee!! Then 4 days later I get another letter telling me I owe them £58 and then 4 days after that letter a letter saying I hadn't paid them.

    I told them I was not happy, I told them I dont feel it very fair that I am penalised for selling my car and that how can it go from £14 to £44 to £58 in the space of a week???

    I am not happy, I dont mind paying the remainder of the month that the insurance covered but I am not happy to have to pay £30 to cancell it when I paid monthly by DD but then to be told its £58. I know its not a lit but it is when were on a single wage with 2 young children.

    Can anyone offer any advice, I rang then to tell them that I would have to pay it at the end of teh month when I got paid but they didn't want to know only telling me that the debt will be passed on to a debt collection agency, which I think is really out of order
Page 1
    • InsideInsurance
    • By InsideInsurance 15th Feb 12, 4:44 PM
    • 22,232 Posts
    • 11,387 Thanks
    InsideInsurance
    • #2
    • 15th Feb 12, 4:44 PM
    • #2
    • 15th Feb 12, 4:44 PM
    Be thankful, £30 is a low cancellation fee and the Ombudsman supports fees of up to £50. The terms of cancellation will be in your policy documents which you agreed to when you took the policy out.

    You evidently need to speak to them given the inconsistent information you have been receiving, find out what the correct value is and assuming it marries up to what it should be then pay it. It could have increased if you cancelled the DD because of a failed payment but only they can give you a breakdown.
    • Quentin
    • By Quentin 15th Feb 12, 5:30 PM
    • 29,814 Posts
    • 14,031 Thanks
    Quentin
    • #3
    • 15th Feb 12, 5:30 PM
    • #3
    • 15th Feb 12, 5:30 PM
    For this reason I no longer needed my car insurance with Tesco so cancelled the direct debit and informed them that I no longer owned the vehicle.
    Originally posted by TristanHeard
    The different letters you have received will be due to them discovering that you had stopped your dd.

    ie. The original (lower amount) will have been sent to you on the assumption that they would be getting their usual instalment.

    In the event they didn't as you stopped the dd, hence the increased amounts they are now demanding.

    Get them to itemise the final amount demanded, then take it from there.
  • ChrisCo
    • #4
    • 16th Feb 12, 11:30 AM
    • #4
    • 16th Feb 12, 11:30 AM
    £58 is good, Ive just canceld my policy with the Post Office 1 month in and its cost me:
    Admin cost :£35
    Insurance Cost for the month to date : £149
    and then on top of that...
    30% of insurance premium: £426
    so over £600 for one months insurance....
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