Car Insurance Admin Fee for cancelling Policy

WilliamRD

As i have found much cheaper car insurance quote i want to cancel my car insurance with the post office. I am happy to pay the admin fee and my payments are all up to date. Can i just cancel my direct debit and send the post office the admin fee via cheque. They have advised me that i will have to pay a total of just under £300 to cancel my insurace all together. I have had a look through my policy wording and through all the information on the post office website and i can not find anything regard these penalty fees they are wanting me to pay. I feel that these cost are totaly unexplained and unreasonable. I think that i am entitled to cancel the policy and the direct debit at the same time. Where do i stand ???

Quentin

You can always cancel a direct debit at any time.

That stops them taking payment only. (ie It doesn't stop them pursuing you for a debt).

Equally you can cancel your policy at any time, but the refund you get may not be exactly pro rata and you may have early termination fees to pay on the credit agreement (which allowed you to pay in instalments) as well as the admin charge.

You are entitled to an explanation of the charges. If they are in line with the ts + cs you agreed to, then you will have a battle getting anyone to agree they are "unreasonable".

dunstonh

I feel that these cost are totaly unexplained and unreasonable.

That isnt for you to decide though is it.

Chances are that the £300 exists because you are trying to do this mid term and the period of cover you have had (and are liable for) doesnt match the period you have paid for yet.

I think that i am entitled to cancel the policy and the direct debit at the same time. Where do i stand ???

They will just pass the debt to a collections agency and wreck your credit rating and let the credit agency do their bit to get the money off you.

iceicebaby

WilliamRD wrote: »

As i have found much cheaper car insurance quote i want to cancel my car insurance with the post office. I am happy to pay the admin fee and my payments are all up to date. Can i just cancel my direct debit and send the post office the admin fee via cheque. They have advised me that i will have to pay a total of just under £300 to cancel my insurace all together. I have had a look through my policy wording and through all the information on the post office website and i can not find anything regard these penalty fees they are wanting me to pay. I feel that these cost are totaly unexplained and unreasonable. I think that i am entitled to cancel the policy and the direct debit at the same time. Where do i stand ???

They will work out how much they will charge you for the time you have had on cover, plus admin fees, cancellation fees commision etc. Then they will take off this charge what you have already paid and you are then liable to pay the difference.

Incidentally, have you got a claim on your policy as if you have either a fault claim or an unsettled claim then the insurer will be expecting you to pay for the full year of insurance.

GT60

To the person with the M=S policy did they not try to charge you a short term charge also ? they tryed that with me.
Also Make sure you tell the muppets that you do not want to renew with them at the renewal time because this is one of the ***** companies that do an automatic renewal with out asking! GRRRRR.