Car insurance cancelation charges?! pls help

Tony_Montana_2

Dear all, any advice on the following very much appreciated:

I recently insured my VAN with Commercial vehicle direct on the 1st March 09 and paid the full 12 months. However today I called them to inform them I have now sold my van and would like to notify them of change of vehicle. They informed me that as my new vehicle is a car (which I have purchased to use until I find a new van) that they can insure me and put me through to there sister company.

I should add at this point that the figure for 12mths was £316.00 on the existing van. They told me that if I should take out the insurance with there sister company the figure was reduced to £217.00 due to the time lapsed etc which I thought was fine. However if I decided to not go with them and cancel my policy, subtracting the cancellation fee they would only return me £137.00!.

As they were competative on the van I thought there would be no reason that there sister company would aslo offer me a good deal. My new car is to run around in is a £1000 mitsubishi pajero (I have owned many before and know the sort of insurance I sould be paying).
They quoted me £860.00 fully comp!! all details exactly as the van, and the van was worth about 7.5K.

I told them that I felt it strange that there was such a high cancellation fee and a coicendience that they had quoted me such a rediculious figure. I then went back to Commercial vehicle direct and cancelled my policy which would only return me £137.00 - which equates to £179 for two months motoring :mad:

I said to the lady on the phone In the cancellations dept that I would seek legal advice as I felt the charge was far too excessive and would contact there complaints department. She informed me all cancellation information is explained in there automated message which they play at the end of the original exceptance of the policy - I said to her I did not listen to it, then she said it is also detailed in the terms and conditions which I received with my insurance details. However nothing is detailed within, it simply says cancellation will be subject to a admin fee

PLEASE can someone help me out on this and let me know my rights, or advise me of how I should construct my letter to their complaints dept.....

Thank you all

Lee Williams

PS sorry for the bad spelling I am typing at 100 mile an hour as I have to fly out the door

sunnyone

That sounds very Adrian Flux to me (think that was the cow boys name), 2/3 rds of a years full premium for under 7 weeks insurance after you added a cancelation charge that was never mentioned when I took out the policy.

Never again.

sunnyone

tali

Car insurance companies are a law unto themselves. Afaik .they do have a pro rata refund system - where no refund is due after 7 months of insurance - so your % are not right
Admin fees at most are £25-£35

Tony_Montana_2

BUMP!

Should I challenge them about this or am I fighting a lost cause?

My conclusion is stick with the bigger companies, I have been with the same two companies for years now and never should have strayed.

tali

Fight the b****** and give em a bloody nose!

jack_spratt_2

Look at the terms and conditions in your original policy schedule .
The excuse they will make is that you have been charged short period rates .
But guess they have deducted there commission from the refund so they will not lose any money themselves !! I am afraid it is a common practice as I said look at the terms and conditions in the policy schedule if cancellation charges are not shown fight it!!