No refund for cancelling AA cover??

Cappuccino

Hi - just wondering if anyone else has found the AA's policy on offering ZERO refund if the policy is cancelled mid-term a bit (or a lot) unfair? I sold my car last weekend, and in my current crusade to save money figured I could cancel my AA cover (my wife and I had separate policies) and have myself added to my wife's policy - since we now just have a single car.

The guy on the end of the phone when I phoned the AA said that not only would they refuse to add me to my wife's policy until her renewal date (October 2009) but that if I cancelled my policy now (due for renewal Dec 2009) I would not get a single penny back refund, even though I have fully 9 months cover (I paid £97 in full last December).

By paying annually I am reducing AA's admin costs and giving them more money to invest or do whatever they want with for a longer time. Yet I seem discriminated against versus those paying monthly, who seem to be able to cancel whenever they like.

Having read into it they have it all covered in their T&Cs but does anyone else find this to be unfair? It was certainly NOT pointed out to me when I took the policy out, and given that most other motor insurance related products (breakdown cover being after all a form of insurance) offer a part-refund if cancelling mid-term, I assumed there would be a similar procedure for cancelling AA cover.

I mean fair enough, by all means charge an admin fee for the cancellation - but I find keeping the ENTIRE year's premium with 9 months left to run to be extortion - give how poorly this condition is advertised when you take out the policy.

Reading on this site I'd like to go for something like AutoAid which is only £37 per year and includes husband and wife, whereas my current AA cover cost £97 and only includes myself, but seeing that we have both already paid for AA cover until October this year and the AA refusing to allow us a refund or in any way change our policies, there seems little point in persuing alternatives until then.

Would appreciate if anyone had similar experiences if they could let me know, and if they were able to find any way around it?

vikingaero

Cappuccino wrote: »

Hi - just wondering if anyone else has found the AA's policy on offering ZERO refund if the policy is cancelled mid-term a bit (or a lot) unfair? I sold my car last weekend, and in my current crusade to save money figured I could cancel my AA cover (my wife and I had separate policies) and have myself added to my wife's policy - since we now just have a single car.

The guy on the end of the phone when I phoned the AA said that not only would they refuse to add me to my wife's policy until her renewal date (October 2009) but that if I cancelled my policy now (due for renewal Dec 2009) I would not get a single penny back refund, even though I have fully 9 months cover (I paid £97 in full last December).

By paying annually I am reducing AA's admin costs and giving them more money to invest or do whatever they want with for a longer time. Yet I seem discriminated against versus those paying monthly, who seem to be able to cancel whenever they like.

Having read into it they have it all covered in their T&Cs but does anyone else find this to be unfair? It was certainly NOT pointed out to me when I took the policy out, and given that most other motor insurance related products (breakdown cover being after all a form of insurance) offer a part-refund if cancelling mid-term, I assumed there would be a similar procedure for cancelling AA cover.

I mean fair enough, by all means charge an admin fee for the cancellation - but I find keeping the ENTIRE year's premium with 9 months left to run to be extortion - give how poorly this condition is advertised when you take out the policy.

Reading on this site I'd like to go for something like AutoAid which is only £37 per year and includes husband and wife, whereas my current AA cover cost £97 and only includes myself, but seeing that we have both already paid for AA cover until October this year and the AA refusing to allow us a refund or in any way change our policies, there seems little point in persuing alternatives until then.

Would appreciate if anyone had similar experiences if they could let me know, and if they were able to find any way around it?

I believe you can suspend your cover and then reinstate it when your wifes policy expires. I'm guessing you spoke to an agent who got out of the wrong side of bed. Try calling again.

As to whether it's fair? I would say yes. The AA policies are annual contracts and this is detailed in the T&C's. You would have had a 14 day cooling off period after receiving the documents to cancel cover and get a full refund.

Cappuccino

Hi thanks for the reply. I am not denying that it is in the T&C's, it clearly is. I am arguing whether or not it's fair to put it in the T&Cs in the first place.

Yes it is an annual contract. But so are car insurance motor policies, and I do not know of a single motor insurance company that keeps the entire year's premium if the policy is cancelled mid-term. As I said, an admin fee would be fair, to represent the genuine cost to the AA of cancelling the policy, but keeping the entire premium IMO is extortion.

This would not be so bad if they weren't blatantly refusing to add me to my wife's policy until her renewal date in October. At least then I could suspend this policy, go on my wifes - then at her renewal cancel her policy and reinstate mine. People who pay monthly can change their policies and cancel them however they please. Seems by giving the AA more money up front (therefore helping the AA) annual payers are being discriminated against.

Well anyway, I have cancelled my direct debit so at least I won't inadvertantly renew with the AA when it comes up for renewal in December. The AA may have gained a few extra pounds by refusing to accommodate my circumstances this time round, but they have lost hundreds of pounds of my future business since I am not interested in continuing with the AA once this current policy expires.

mikey72

I've had this as well. We had AA cover, then bought a Vauxhall with just over a years dealer breakdown cover. We did mange to suspend the private policy, but no chance of a refund. It's not publicised, and they must lose a lot of future business, as they really annoyed us as well.

KeithP

Unfair terms in contracts are illegal, and are therefore unenforcable.
You need a court to determine that the contract is unfair, and the court will instruct the AA to refund an appropriate amount.
You can use the Small Claims Court for this. Can be done online.

BUT...
before you do this you need to decide whether you stand any chance of winning the case.

Cappuccino

Hi thanks for the advice. I think in the first instance I will write to the AA and put forward my case, that:

1) Their policy on keeping the entire year's premium, whilst in their T&Cs, is not well publicised and was not explained to me by the representative that sold me the policy.

2) That I have an AA customer for many years and by refusing to conduct themselves fairly they are risking losing many hundreds of pounds of me and my wife's future business.

3) That I believe their policy on keeping the entire year's premium is an unfair term in the contract, paramount to extortion, and is highly discriminatory against those paying their premium annually, whereby those paying monthly may cancel at any time.

Reading around the web it seems many AA customers have been put off in similar circumstances to mine by their unfair policy and unwillingness to budge on their stance in order to keep their customers.

Lemonade_Pockets

The terms are the terms and you agreed to be bound by them when you paid for the cover. Even if there where no t+c's besides what you discussed with the sales representative your agreed to pay the AA for the provision of breakdown service for 1 year. They are still willing to provide that service so contractually you are still liable for the full amount.

I very much doubt law would favour you in this scenario.
With regards to unfair terms - The UTCCRs can protect you from terms that reduce your statutory or common law rights and from terms that seek to impose unfair burdens on you over and above the ordinary rules of law. Non of this applies to you!



Why don't you just do as everyone else has suggested and just suspend the cover untill such time that you need it again?

Otherwise good luck with the letter.

rabialiones

most insurance companies state that full years cover is only payable if a claim has been made, otherwise if cancelling mid-term a proportion is refundable, after admin costs.