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    • Martha.Meza-Munoz
    • By Martha.Meza-Munoz 28th Nov 17, 10:40 AM
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    Martha.Meza-Munoz
    Outraged at cancelation charges for car insurance
    • #1
    • 28th Nov 17, 10:40 AM
    Outraged at cancelation charges for car insurance 28th Nov 17 at 10:40 AM
    Hi, Sorry its a bit long!


    I need some a advice, I had to cancel my car insurance policy with Go Skippy as they were unable to provide me with a quote to use the car to commute to different places of work. I realise this was something requested from work so after 2 months with Go Skippy I call them to ask for a new quote.


    I was paying £111.85 per month and after getting the quote (with no increase in the mileage) they told me that my monthly payment will increase to more than £200 per month. I found this ridiculous and after asking around friends and colleagues told me that the maximum increase would be of £50 and certainly no what I was told.


    I shopped around and found other insurance companies that added to my monthly no more than £20 for what I needed. So I call Go skippy customer services and told them that I had cheaper quotes and ask if they could match them. Their answer was no as the brokerage company they use only provided that quote. Therefore, I had to cancel and asked for a breakdown of any charges or refunds and received an e-mail telling me that I have an outstanding balance of £325.00 and I should contact them to pay it.


    Now, I check the cancellation policy and it states that chargers are £75 for cancelling after the 14 day period (I started the insurance on the 29th of September 2017), £50 for brokerage chargers and I assume the £111.85 for the monthly payment. The sum of this still do not add up to the ridiculous amount they are asking me.


    Please I need to know what can I do if anything as I think this is outrageous and should not be ask to pay such amount.


    many thanks!!
Page 1
    • paddyandstumpy
    • By paddyandstumpy 28th Nov 17, 10:54 AM
    • 917 Posts
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    paddyandstumpy
    • #2
    • 28th Nov 17, 10:54 AM
    • #2
    • 28th Nov 17, 10:54 AM
    Ask them for a breakdown of their charges and take it from there.
    • marlot
    • By marlot 28th Nov 17, 11:48 AM
    • 3,140 Posts
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    marlot
    • #3
    • 28th Nov 17, 11:48 AM
    • #3
    • 28th Nov 17, 11:48 AM
    Most car insurance is an annual contract. I realise that you pay monthly - but behind the scenes that is probably a loan, which you're paying off month by month.

    You'll have to look at your insurance documents to find the cancellation terms.

    If you feel they are unfair, you can lodge a complaint.
    • forgotmyname
    • By forgotmyname 28th Nov 17, 7:11 PM
    • 26,234 Posts
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    forgotmyname
    • #4
    • 28th Nov 17, 7:11 PM
    • #4
    • 28th Nov 17, 7:11 PM
    As above charges to cancel the insurance = £75. But what about the finance you took out to pay for the (yearly) policy?

    Legal protection? Or other extra's?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • Blibble
    • By Blibble 28th Nov 17, 7:13 PM
    • 254 Posts
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    Blibble
    • #5
    • 28th Nov 17, 7:13 PM
    • #5
    • 28th Nov 17, 7:13 PM
    As above, request a breakdown of the charges. Could the insurer be charging pro rata for any other days you were insured, or for any interest etc. from future premiums being lost (as the premium is monthly, and therefore subject to interest as the loan is being terminated early?)
    • dunstonh
    • By dunstonh 28th Nov 17, 8:02 PM
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    dunstonh
    • #6
    • 28th Nov 17, 8:02 PM
    • #6
    • 28th Nov 17, 8:02 PM
    It is quite normal for the cancellation rate to be applied more heavily in the early months than the later months. This is because virtually all the admin costs are suffered at the start. So, cancelling in month 1 may see you pay the equivalent of 3 months cover. As the year goes on, the cancellation rate gets closer to pro-rata.

    As you were financing your car insurance under a credit agreement, there are likely to be credit costs involved as well. Plus, the possibility of some non-refundable extras (like breakdown or legal expenses).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • agrinnall
    • By agrinnall 28th Nov 17, 9:11 PM
    • 18,777 Posts
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    agrinnall
    • #7
    • 28th Nov 17, 9:11 PM
    • #7
    • 28th Nov 17, 9:11 PM
    Shouldn't at least some of your outrage be directed at yourself for failing to read and understand the charges before you took out the policy?
    • csgohan4
    • By csgohan4 29th Nov 17, 8:01 AM
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    csgohan4
    • #8
    • 29th Nov 17, 8:01 AM
    • #8
    • 29th Nov 17, 8:01 AM
    not money saving to pay monthly either, might as well put money down the toilet. It's like getting a high interest loan
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • OnanTheBarbarian
    • By OnanTheBarbarian 29th Nov 17, 10:19 AM
    • 1,367 Posts
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    OnanTheBarbarian
    • #9
    • 29th Nov 17, 10:19 AM
    • #9
    • 29th Nov 17, 10:19 AM
    Whilst you are correct that paying monthly costs more, looking at the monthly premiums of £111 could you afford to throw down £1200 in one hit?
    • sheramber
    • By sheramber 29th Nov 17, 4:25 PM
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    sheramber
    Go Skippy is a broker so there will be commission included in the charge.
    • csgohan4
    • By csgohan4 29th Nov 17, 6:09 PM
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    csgohan4
    Whilst you are correct that paying monthly costs more, looking at the monthly premiums of £111 could you afford to throw down £1200 in one hit?
    Originally posted by OnanTheBarbarian


    but it's cheaper to pay annually, otherwise you get into a cycle of debt and loans
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • paddedjohn
    • By paddedjohn 29th Nov 17, 11:30 PM
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    paddedjohn
    but it's cheaper to pay annually, otherwise you get into a cycle of debt and loans
    Originally posted by csgohan4
    Yes but who's got £1200 to pay in one go?
    Be Alert..........Britain needs lerts.
    • agrinnall
    • By agrinnall 30th Nov 17, 9:22 AM
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    agrinnall
    Yes but who's got £1200 to pay in one go?
    Originally posted by paddedjohn
    Anyone with a spare £1200. I'd certainly pay it if that was my premium in order to save £132.
    • dunstonh
    • By dunstonh 30th Nov 17, 11:51 AM
    • 89,933 Posts
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    dunstonh
    Yes but who's got £1200 to pay in one go?
    Originally posted by paddedjohn
    Most people pay car insurance annually. A significant number do pay monthly.

    Whilst many, particularly young people who have yet to build their wealth, do pay monthly, why do you think it unusual not to have just £1200?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • LadyDee
    • By LadyDee 30th Nov 17, 12:14 PM
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    LadyDee
    If this was a change in your employment terms, i.e. travelling to different sites instead of the home base, and requested by your employer, shouldn't they be paying any out-of-pocket expenses?
    • takman
    • By takman 1st Dec 17, 11:41 AM
    • 2,900 Posts
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    takman
    Whilst you are correct that paying monthly costs more, looking at the monthly premiums of £111 could you afford to throw down £1200 in one hit?
    Originally posted by OnanTheBarbarian
    Yes but who's got £1200 to pay in one go?
    Originally posted by paddedjohn
    Everyone should have some savings for big expenditures and if you don't even have £1200 then you desperately need to sort out your finances.

    You need to adjust your budget to start building up some savings. Even if you didn't quite have enough paying in full on an interest free card would still be much cheaper, as long as you had a plan to pay it off before he 12 months and save for next year premium.
    • Faith177
    • By Faith177 1st Dec 17, 11:51 AM
    • 2,484 Posts
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    Faith177
    Everyone should have some savings for big expenditures and if you don't even have £1200 then you desperately need to sort out your finances.

    You need to adjust your budget to start building up some savings. Even if you didn't quite have enough paying in full on an interest free card would still be much cheaper, as long as you had a plan to pay it off before he 12 months and save for next year premium.
    Originally posted by takman
    Yes but that is in a perfect world Takman not everyone is that lucky to have the luxury of savings for whatever reason everyone's circumstances are different
    First Date 08/11/2008, Moved In Together 01/06/2009, Engaged 01/01/10, Wedding Date 27/04/2013

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    • takman
    • By takman 1st Dec 17, 12:07 PM
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    takman
    Yes but that is in a perfect world Takman not everyone is that lucky to have the luxury of savings for whatever reason everyone's circumstances are different
    Originally posted by Faith177
    That's why if someone doesn't have the money they need to sit down work out a budget an go through every tiny detail of their finances to see where they can save money.

    The large majority of people who spend every penny each month could easily cut back and build up some savings.
    • Faith177
    • By Faith177 1st Dec 17, 12:46 PM
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    • 3,980 Thanks
    Faith177
    That's why if someone doesn't have the money they need to sit down work out a budget an go through every tiny detail of their finances to see where they can save money.

    The large majority of people who spend every penny each month could easily cut back and build up some savings.
    Originally posted by takman
    I can see it is pointless trying to make you understand how much some people struggle to live month to month so I wont waste my time

    However just to leave you with some food for though I was in the situation last year where I would have not a penny spare even after cut backs after our household lost £1400 a month overnight due to my husband being in a huge car accident leaving him with a brain injury and our savings had already been depleted caring for my mum in her final days battling breast cancer

    Trust me sometimes no amount of sitting down and looking at your expenses is going to make any extra money appear.
    First Date 08/11/2008, Moved In Together 01/06/2009, Engaged 01/01/10, Wedding Date 27/04/2013

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    • HappyHarry
    • By HappyHarry 1st Dec 17, 1:09 PM
    • 469 Posts
    • 721 Thanks
    HappyHarry
    I can see it is pointless trying to make you understand how much some people struggle to live month to month so I wont waste my time

    However just to leave you with some food for though I was in the situation last year where I would have not a penny spare even after cut backs after our household lost £1400 a month overnight due to my husband being in a huge car accident leaving him with a brain injury and our savings had already been depleted caring for my mum in her final days battling breast cancer

    Trust me sometimes no amount of sitting down and looking at your expenses is going to make any extra money appear.
    Originally posted by Faith177
    Just a thought, completely out of the blue, if your money is not stretching could you not cancel your trip to the Download festival in June, or your weekend to Poole in February or your holiday to Berlin/Rome in April and your trip to Belfast in March and the weekend in the Cotswolds for the airshow in June.

    Or maybe look at reducing costs for your friend's hen do in Cardiff in August and the wedding in the Peak District in September?

    http://forums.moneysavingexpert.com/showpost.php?p=73358129&postcount=19
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
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