Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Donury236
    • By Donury236 7th Jul 17, 2:18 PM
    • 46Posts
    • 5Thanks
    Donury236
    Cancelling and avoiding cancellation fee after claim
    • #1
    • 7th Jul 17, 2:18 PM
    Cancelling and avoiding cancellation fee after claim 7th Jul 17 at 2:18 PM
    I was/am insured with 1st central. Car was written off on the 19th June and claim is now settled. As they do, balance of payments taken by them from the payout amount.
    They say I can now insure new car as the policy is paid in full, but I wont be as they are double any other insurer for our new car.

    So I cancelled my DD to them as well, they have the final instalment amount so wont be taking any cash from me, queue what I assume is a standard email threatening admin charges if DD is not reinstated in X days, and if its not they wil have no choice to cancel my policy and charge me the £50 cancellation fee.

    Can I just leave this policy as is and have it expire/run its course and tell them I will not be renewing at the end - which is NOT classed as a cancellation and so wont be subject to the cancellation fee?

    I am going to call them up to talk to them but jsut in case they try to bamboozle me and make out that they have every right to. I have checked the policy docs and it only states £50 renewal fee, £50 cancellation fee, so as not renewing is not cancelling there should be no fee yes?
Page 1
    • Quentin
    • By Quentin 7th Jul 17, 2:48 PM
    • 32,086 Posts
    • 16,177 Thanks
    Quentin
    • #2
    • 7th Jul 17, 2:48 PM
    • #2
    • 7th Jul 17, 2:48 PM
    Check the policy wording, but with most insurers your wheeze won't work.


    If you don't put a new car on cover within a short space of time the policy normally gets cancelled under you


    (it's you who is changing the goalposts by changing the car)


    If you are going elsewhere for cover then (if you have any NCD) you will need to cancel anyway to use your NCD on the new policy
    • silvercar
    • By silvercar 7th Jul 17, 2:58 PM
    • 35,483 Posts
    • 149,691 Thanks
    silvercar
    • #3
    • 7th Jul 17, 2:58 PM
    • #3
    • 7th Jul 17, 2:58 PM
    I was/am insured with 1st central. Car was written off on the 19th June and claim is now settled. As they do, balance of payments taken by them from the payout amount.
    my understanding was that this ends the policy.

    They say I can now insure new car as the policy is paid in full, but I wont be as they are double any other insurer for our new car.
    Seems reasonable....

    Can I just leave this policy as is
    The policy for the new car or old?

    I would have thought you could start again with whoever you like. After all, not everyone will have bought a new car straight away. Some people may ask for a NCD certificate and wait until they see the car of their choice/ can afford a new car/ stop driving for a time...
    • Quentin
    • By Quentin 7th Jul 17, 3:05 PM
    • 32,086 Posts
    • 16,177 Thanks
    Quentin
    • #4
    • 7th Jul 17, 3:05 PM
    • #4
    • 7th Jul 17, 3:05 PM
    my understanding was that this ends the policy

    ..
    Originally posted by silvercar
    No.


    You must be allowed to use up the remainder of your policy with a replacement car (assuming the replacement is acceptable to the insurer), though there may be a premium increase should the replacement car incur a higher premium
    • silvercar
    • By silvercar 7th Jul 17, 3:18 PM
    • 35,483 Posts
    • 149,691 Thanks
    silvercar
    • #5
    • 7th Jul 17, 3:18 PM
    • #5
    • 7th Jul 17, 3:18 PM
    No.


    You must be allowed to use up the remainder of your policy with a replacement car (assuming the replacement is acceptable to the insurer), though there may be a premium increase should the replacement car incur a higher premium
    Originally posted by Quentin
    So if you are not replacing the car, do you have to cancel or can you let the policy run its course?

    Assuming the latter, could you let this policy run its course and take a new policy elsewhere.

    (I know that normally you have to cancel policies after a sale to prevent a 3rd party claim on your policy, but here the car has been written off.)
    • Quentin
    • By Quentin 7th Jul 17, 4:56 PM
    • 32,086 Posts
    • 16,177 Thanks
    Quentin
    • #6
    • 7th Jul 17, 4:56 PM
    • #6
    • 7th Jul 17, 4:56 PM
    So if you are not replacing the car, do you have to cancel or can you let the policy run its course?

    Assuming the latter, could you let this policy run its course and take a new policy elsewhere.

    (I know that normally you have to cancel policies after a sale to prevent a 3rd party claim on your policy, but here the car has been written off.)
    Originally posted by silvercar

    Your assumption was wrong


    See #2. You normally only have a limited time to get another vehicle on cover.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,215Posts Today

8,411Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin