Swinton Insurance - night mare

shandoli

Just looking for some advice on how to deal with swinton car insurance.

My father got an insurance thru them on the 25th of feb 2009 for a total of 340 gbp for the year to be paid through monthly direct debits.

Father had to leave the country on the 16th of may, so he wrote a cancellation letter which I posted a couple of days later. Insurance was cancelled around the 20th of may. So the total period of insurance was just shy of 3 months.

In those three months, my father has paid them a grand total of about 155 pounds ( I have looked through his bank statements).

Then I get a letter from Swinton addressed to my father asking for £164.82 and the break down is as follows:

outstanding balance: 384.99
insurer refund : 254.32
direct debit refund: 23.60
discount recovery: 7.75
cancellation charge: 50

Total outstanding: 164.82.

Now my father is gone for atleast a year and I will have to deal with ths.

Can anyone guide me pLZ. It just seems that to have to pay 155 + 164 = 320 gbp for 3 months insurance when the entire years insurance was 340....seems...well sickening!!!

Thank you in advance.

dogbot

Best to call them and clarify exactly how much they are looking for before anything else.

However, their proceedure for cancellations will, most likley, all be written down in their policy booklet, including the charge. £50 is regarded as reasonable by FOS.

Remember, when paying monthly you are not paying for the insurance as you go, but you have taken out a separate credit agreement to spread the cost of the full sum over the year.

Was any claim made?

shandoli

Hey thx for ur reply. No claims were made. They are looking for 164 on top of 154 they have already charged.

Secondly, I am finding it hard to talk to them cos obviously my father is the olicy holder and they wont go into too much details with me.

What I am struggling to understand is , where did the 154 quid that they got paid go? I dont see it in the numbers above.

Thanx again. I need to get back to them urgently otherwise they r threatening to send it off to debt colectors which will incur another 25 quid admin charge.. sigh

dogbot wrote: »

Best to call them and clarify exactly how much they are looking for before anything else.

However, their proceedure for cancellations will, most likley, all be written down in their policy booklet, including the charge. £50 is regarded as reasonable by FOS.

Remember, when paying monthly you are not paying for the insurance as you go, but you have taken out a separate credit agreement to spread the cost of the full sum over the year.

Was any claim made?

dunstonh

The breakdown seems fair enough.

You do not pay for pro-rata cover and if you pay monthly, you have to factor the cost of the credit arrangement in there as well plus the fact that monthly payments rarely match the term of cover.

Cancelling after 3 months may only give a 7 month refund.

Check the initial premium as you have rounded that and dont say if that includes the cost of credit and the broker charge (if applic). The real figures you post suggest an annual premium that is higher than £340.

shandoli

The total cost of insurance is 340.91. I have the paperwork in front of me. I guess it comes to 380ish with the interest per annum.

So what you are saying is that 150 quid over 3 months doesnt actually cover the 3 months even if the 12 months r supposed to be 380 quid? If not, the proportionality is out of whack. LOL

Any idea by looking at those numbers where they have factored in the 154 quid already paid?

Thax again man. I dont mind paying this if incase the money is justified. If not, I would rather spend it on myself.

dunstonh wrote: »

The breakdown seems fair enough.

You do not pay for pro-rata cover and if you pay monthly, you have to factor the cost of the credit arrangement in there as well plus the fact that monthly payments rarely match the term of cover.

Cancelling after 3 months may only give a 7 month refund.

Check the initial premium as you have rounded that and dont say if that includes the cost of credit and the broker charge (if applic). The real figures you post suggest an annual premium that is higher than £340.

shandoli

anyone?...........

dogbot

The difference between the outstanding balance and the insurer refund? Bear in mind that swintons are NOT an insurer, they are a broker. To get a clear answere you need to phone then and ask where the money your father has paid has been taking into account

rudekid48

Looks like he may also have taken out some optional extras like Legal Protection, Breakdown etc as these are usually non refundable. Are there any mention of these on any of your paperwork?