Policy cancellation charge

redbeard2000

After Aviva quoted me a ridiculous renewal figure despite 4 years of no claims in our new flat, I shopped around through Quidco and switched to Esure.

My new premium is £55 and Quidco is arranging to send me £20 cashback. :j

However, only on receiving my policy documents did I realise that Esure would charge me £27.50 for cancelling the policy! :mad:

I rang them immediaitely to query this and told them it was unfair (though I've not lodged it as a complaint as such).

I'm sure I've read somewhere that if an administration charge is unavoidable it must be quoted as part of the overall price. Would it be in my rights to protest against this charge if and when I decided another insurer can offer me a better deal?

rudekid48

You may be confusing lapsing a policy with cancelling a policy here. Your post infers that you moved from Aviva at renewal and so your old aviva policy lapsed. It would be the same with esure at renewal if you wanted to move. The cancellation charge would only come in if you cancelled mid term. So if you get a better deal elsewhere at next renewal, as long as you notify esure that you will not be renewing then you would not incur a cancellation charge.

Does that help?

System

although it will be in the small print the cancellation charge would have been there for you to see .are you planning on cancelling mid way through the policy ?

dunstonh

They only charge that fee if you cancel during the term of cover. You are not charged at renewal.

Make sure you are not asking them to cancel at a date that is not your renewal date.

fluffwitt

Small print should be out lawed

glider3560

Cancellation charges aren't exactly small print. I've worked selling direct insurance previously and we had to ensure that we told customers the cancellation charges immediately after they showed interest in buying the policy. They were very specific about ensuring we did this.

If you buy online, you have the same opportunity to read the terms. They aren't exactly small.

dunstonh

"Small print" is often an excuse for people who couldnt be bothered to read the normal size text outlining the key points or listen to what they were being told.