Norwich Union £72 Cancellation Fee!!

bluebubble30

Hi Everyone,

Just wondering if anybody can explain or to warn of the cancellation fee Ive just been advised.

Yesterday I did a comparison for car insurance and found a good quote and took out the the policy to start on 20/10/08.

I then contacted Norwich Union to cancel on the 19/10/08 (this policy was renewed automatically starting on 22/08/08...yes I missed the date!).

Ive been quoted £72.50 administration fee to cancel....Ive only just found out £52.50 is in my policy booklet in the small print. The other £20 I cant figure out.

My Direct Debit goes out on the 20th for the month ahead so as far as I can see, I have already paid until the 20th of October. They have said I owe the extra.

Ive never had to pay a cancellation fee and when I rung and explained this and that the Administration fee was extortionate, they said they also want the paper copy of the policy back.

Ive told them that I will send it back with a complaint letter and a cheque for £72.50 minus the postage cost of the policy....32p (my administration fee!).

So I know theres nothing I can do but I still dont understand where the extra £20 came from, so if you have recently taken out new insurance, check the booklet wording when you receive it as you have 14 days to cancel with no fee.

I have now put a reminder in my diary for next year six weeks before the policy is due to run out so it wont happen again.

These companies make millions and yet they'll still keep taking 'extra fee' when they can. Its disgusting!
:mad:

lisyloo

and yet they'll still keep taking 'extra fee' when they can

Yes, that would be when they have to do some work on your behalf.
It might only cost you 32p to post a letter but they have to supply buildings, staff etc. at business rates.

You are correct in that the answers are
a) read your policy up front
b) stick dates in your diary before renewal and review

dunstonh

You have a cancellation fee and cost of cover so far. It is not a £72 fee.

Ive never had to pay a cancellation fee

Not that it makes any difference.

when I rung and explained this and that the Administration fee was extortionate

That is your opinion but it doesnt matter one bit.

they said they also want the paper copy of the policy back.

Its not the policy they are interested in but the certificate.

Ive told them that I will send it back with a complaint letter and a cheque for £72.50 minus the postage cost of the policy....32p (my administration fee!).

That is your choice. However, you ought to be aware that the FOS have sided with the insurers on cancellation fee and pro-rata cover where the renewal terms are made clear and the fees disclosed in their documentation.

These companies make millions and yet they'll still keep taking 'extra fee' when they can. Its disgusting!

You managed to find time to shop around for car insurance but not actually read the renewal conditions. Why is your inability to read a short renewal letter telling you what needs to be done next a fault of Norwich Union?

bluebubble30

Thanks. I really just wanted an explanation as to what the extra £20 was for as Ive paid up to the 22/10/08.

Secondly the short renewal was a 50 page 'booklet', it only took 10 mins to do an insurance comparison.

Thirdly as for the cancellation fee...Ive been with them for 5 years with no claim. This is the first time Ive called them so Ive well paid for the paperwork, a phonecall and somebody to talk to me for five minutes.

lisyloo

Secondly the short renewal was a 50 page 'booklet'

This of not what dunstonh is referring to.
The renewal letter is a one or two page A4 letter.
There is usually a bit in bold that says "WHAT YOU NEED TO DO NEXT".
Ok, it's not in capitals but it's in bold and not "buried in the small print".

Ive been with them for 5 years with no claim

Irrelevant really.
That paid for 5 years insurance not extra cancellation admin.

This is the first time Ive called them so Ive well paid for the paperwork, a phonecall and somebody to talk to me for five minutes

Sorry but NO you haven't.
Cancellation admin is not included in our premiums.
You've paid for 5 years premium and got 5 years cover.
I'm gald you haven't needed to calim, but you've got what you paid for.
If you want to incurr them ADDITIONAL work then there will be additional costs.

You are of course perfectly entitled to your opinion but these are facts
1) It's legal so short getting a "goodwill gesture" there is nothing you can do
2) You were told about it up front so you can't get out of it
3) You won't get any sympathy round here :-)

bagby

my husband has been stung in this way. He didnt read his policy and they have automatically renewed the policy. I have always let the policies lapse and Ishop around and take out a new cheaper policy. They have taken the money from the card which he paid from last year (which is in my name and I am absolutely furious about) I dont think companies should be able to keep your card details and assume that you want a further years cover if you do not cancel. Always thought if I wanted two years cover then I would ask for it - i shouldnt be the other way round that they just assume you want two years cover. Policy £80 but it was going to cost £45 admin fee to cancel. Can they automatically take the money from my account??? does anyone know if I can complain to anywhere???? They told me I should say at the time of purchase that I dont want them to keep my card details for renewal but I replied that I had not realised they would just be able to deduct money from my account. In my eyes its robbery!!!!!!

dunstonh

They have taken the money from the card which he paid from last year (which is in my name and I am absolutely furious about)

Why are you furious as you agreed to this?

I dont think companies should be able to keep your card details and assume that you want a further years cover if you do not cancel.

They dont assume. They write to you to tell you.

Always thought if I wanted two years cover then I would ask for it - i shouldnt be the other way round that they just assume you want two years cover.

Over 2/3rd of renewals are renewed with the same company. Many forgetful people have been saved from going uninsured by auto-renewal.

Can they automatically take the money from my account??

Yes they can as it is in the terms and conditions that they will do this under a continiuous payment agreement.

does anyone know if I can complain to anywhere????

You can complain to the insurer and ultimatly, the FOS when the insurer turns your complaint down. However, the FOS have a record of agreeing with the insurer on this as long as the auto-renewal is clearly mentioned in the renewal letter and its in the orignal terms and conditions (which it will be on both counts).

In my eyes its robbery!!!!!!

In my eyes, your husband was stupid and you are now trying to blame someone else for his error.

lisyloo

He didnt read his policy

I find this really worrying.
Does he check the policy to make sure the terms of it cover the type of driving he's doing?

It is very easy for people to slip up and drive to a customer meeting when they have cover for "one permanent place of work".

It might sound harsh, but my personal feeling is that if people cannot be bothered to put in the effort to make sure they are properly insured then they should not be allowed private trasnport as they have demonstrated they don't take the responibility serious.
Obviously that can't enforced but I'm really stunned and shocked at the number of people that just don't bother to check what they have.

So perhaps your husband would be better of getting the bus then he wouldn't have to put himself out over his responsibilities to others .......grrrr!!!!!!!

bagby

lisyloo wrote: »

I find this really worrying.
Does he check the policy to make sure the terms of it cover the type of driving he's doing?

It is very easy for people to slip up and drive to a customer meeting when they have cover for "one permanent place of work".

It might sound harsh, but my personal feeling is that if people cannot be bothered to put in the effort to make sure they are properly insured then they should not be allowed private trasnport as they have demonstrated they don't take the responibility serious.
Obviously that can't enforced but I'm really stunned and shocked at the number of people that just don't bother to check what they have.

So perhaps your husband would be better of getting the bus then he wouldn't have to put himself out over his responsibilities to others .......grrrr!!!!!!!

When taking out insurance I tell the insurance company what I need - whether it be "social domestic pleasure and/or commuting", medical history etc so that I am "properly insured" so I do "put myself out over responsibilities to others". Its the cancellation fee I was objecting to.

bagby

In my eyes, your husband was stupid and you are now trying to blame someone else for his error.[/QUOTE]


Why get personal?

dunstonh

Why get personal?

Nothing personal but you did accuse the insurance company of robbery. When you start posting in that sort of tone, responses tend to come back in that sort of tone as well.

Its not robbery. Its a failure to read a simple letter which tells you what you have to do next if you do or do not want to renew.