Cancelling Car Insurance Fees

MoneySavingExpert_2

Hi Guys,

I want to cancel my current car insrance policy with Insure Your Motor which I renewed mid December.

I haven't signed the Finance Agreement yet that they sent me. Are they entitled to charge me £180 pounds just so I can cancel?

I also asked the guy if they would be able to send through proof of my no claims discount before I cancelled, and he said no that was something they couldn't do. I just don't want to cancel and then find I can't get hold of my NCB proof.

Any advice would be great - the reason I'm wanting to cancel is because I've found insurance for the same amount (around £580) but this is fully comp as opposed to TPFT and the excess is also lower.

Thanks.

lisyloo

Are they entitled to charge me £180 pounds just so I can cancel?

Not just for cancellation alone no, but I suspect this figure include some time you have had "on cover".
You need a breakdown to work out what is for cover and what is for cancellation so ask them for a breakdown of this figure.
I suspect you have a relatively small admin fee and the rest if for time on cover at a very unfair rate e.g. you might have to pay for 3 months for 3 weeks. The scheme for short term covere will be in the polciy that you agreed to, so you could look it up.

I also asked the guy if they would be able to send through proof of my no claims discount before I cancelled

If this is a new company you won't have earned any NCB with them.
You will need your renewal notice.
So you either need to copy that you took before you put it in the post, or ask your old insurer for a copy of your renewal notice.

the reason I'm wanting to cancel is because I've found insurance for the same amount (around £580) but this is fully comp as opposed to TPFT and the excess is also lower.

But you do need to factor in the cancellation costs.
As you are discovering this isn't free.

MoneySavingExpert_2

Thanks Lisyloo for your reply. Very helpful.

I think he mentioned that some of the charge was from the Insurers and some from their side as the broker. My renewal date was 16/12/08, so it's been less than 30 days cover so far.

I've been with them for 2 years but only realised now after reading a post on this site that I should really shop around. So they are the ones with proof of my 2 years NCB. I do have the renewal notice with the amount of NCB on it - will that be enough for a future insurer?

I can't believe how much these cancellation costs are...I haven't signed a contract so I take it that it's a 'verbal one' when I spoke to them on the phone?

lisyloo

so it's been less than 30 days cover so far

It's unlikely that you will get away with paying for 30/365 .
Most insurers calculate it in a away that you might perceive as unfair but on the other hand they have paid for your quote and all the paperwork associated.
Generally the shorter the period, the less fair you would perceive it, so you will probably (for example) have to pay for 2 or 3 months cover even though you'd jsut had 1.

I do have the renewal notice with the amount of NCB on it - will that be enough for a future insurer?

Yes this is exactly what they would want.
Some comapnies insist on the original, so I always photocopy or scan it in case it gets lost in the post.

I can't believe how much these cancellation costs are...I haven't signed a contract so I take it that it's a 'verbal one' when I spoke to them on the phone?

You will have entered into a contract.
You have 14 days to check the contract and see whether it's suitable.
If the cancellation charges weren't acceptable to you (or any other part of the policy) then you have 14 days to reject it.

When did you get your paperwork?
I suspect you are outside of the 14 day period, but it's worth checking.
But in general it's a good idea to check the main points of contracts you agree to.
Like many people I don't have the time or inclination to read the entire booklet, but I do read the chapter titles and read the bits that might apply to me.

lisyloo

For future reference someon has compiled info on cancellation charges here

http://www.matthewsguide.co.uk/LIN/comp.php

I can't see "insure your motor" on it, but it might help when searching in future so you can check out cancellation fees before hand.

dunstonh

There is also no requirement to offer a cancellation period on renewals.

Emmawall

Dont know if this will help you but most insurers will NOT insure an imported vehcile, if you were to change your car to one that has lets says been 'imported' and rang to notify the company it is likely they wont be able to offer you cover and thus would have to cancel your policy through no fault of your own and then no charges as the cancellation was on their behalf! also the have to by law give you proof of your ncd.

Emmawall

any problems contact the fsa who will be happy to advise you further

LadyIndecisive

Emmawall wrote: »

Dont know if this will help you but most insurers will NOT insure an imported vehcile, if you were to change your car to one that has lets says been 'imported' and rang to notify the company it is likely they wont be able to offer you cover and thus would have to cancel your policy through no fault of your own and then no charges as the cancellation was on their behalf! also the have to by law give you proof of your ncd.

This doesn't sound right to me. Insurers take on a risk. If the Policyholder changes the risk why is this 'no fault of your own'.

Can the Policyholder also buy and ask to change vehicle to a motorcycle/bus/coach/tractor and expect no charges?

dunstonh

Emmawall wrote: »

any problems contact the fsa who will be happy to advise you further

FSA dont give advice and wont get involved in disputes.

FlameCloud

dunstonh wrote: »

FSA dont give advice and wont get involved in disputes.

Lets not let the facts get in the way of bashing!
Its also a bit of an extreme step, buying an imported car, but hey ho.