Cancelling car insurance policy

emwoll

Hi all,

This is my first post so hope it's ok!! My husband got made redundant and lost his company car, so we bought a car and took out an insurance policy for it. My husband then found a job which gave him a company car, so we no longer needed the car we had purchased. I tried to cancel the insurance policy and they said I would have to pay an admin fee of £50.00 which is virtually half the years premium (£120 for the year). Or, I could continue paying the monthly premiums and when we got another car they would refund the difference?? This seems very unfair, and so long as my husband doesn't loose his job again we won't need to buy another car, is there another way round it??

Quentin

It isn't "unfair", as you will have agreed to the charge when accepting their ts + cs (which will have pointed out the cancellation fee) when you took out the policy.

dunstonh

This seems very unfair

As long as the £50 charge hasnt changed since the start date of the current years cover then its fair.

Its a fixed charge and it doesnt matter if your insurance is £120 or £1200. The fee is the same. The FOS have generally ruled on fees up to £50 being acceptable.