Cancelling Elephant car insurance

orcadia

I had a car insurance policy (which was paid in full at the time I took the policy out) with elephant which would have run out in July. My car has been scrapped so I cancelled the policy on 11th June and returned the certificate of insurance as requested, hoping for a small refund. Well, instead of a refund they say I now need to pay an extra - wait for it - £283.70 because I cancelled the policy!

Help! I can't afford almost 300 pounds, I'm unemployed at the moment and have been a student for the past year so I'm in debt already. I can't understand how they think they can get away with this but I don't know how to stop them.
:mad:

rudekid48

Have you asked for a breakdown of the charge so that you know how they have arrived at that figure?

dunstonh

£283.70 sounds like a lot for just one month (or even less than that).

What is the breakdown of that charge and how does it compare to the annual premium?

orcadia

I had already paid the whole year in advance at a cost of around £279. What they are now charging as a cancellation fee is a little more than the full annual fee which is already paid.

I have contacted them but haven't managed to get any answers yet. I've contacted them by email as I prefer to get an answer in writing so I can prove what's been said.

Thanks for any help.

dogbot

If you paid it all in advance it seems like there must have been some mistake! Cancelation fee is usualy about £50 or less!

dunstonh

What they are now charging as a cancellation fee is a little more than the full annual fee which is already paid.

Generally, cancellation charges do not exceed £50. £25 is the common figure. So, it doesnt sound right.

Charliezoo

That doesn't sound right at all, I agree that there must have been some kind of mistake and I hope you get it resolved soon.

I personally would never go back to Elephant, I cancelled my policy when it lapsed as I'd found a better deal elsewhere and they tried to charge me £25 cancellation charge even though the 12 month policy had finished! I refused and luckily they removed the charge but not without an arguement.

pedro123456

Another typical case of the IC’s greed, here we have a policy holder who paid up front for 12 months cover, and for whatever reason scrapped his car and thought he may well have a small refund, and although it wouldn’t have been much (if anything), he has been saddled with a further charge.
Can anyone explain the logic in this?, this fella has saved the IC a month of potential claims hasn’t he?

When he rang to tell the IC he was scrapping the car, why didn’t they just tell him to let the policy expire and not to renew it? To avoid any further costs. No wonder there is lack of public confidence in insurance products.

At the very least it’s unethical and immoral, and it only serves to alienate the policy paying public. Is this TCF I think not, its pure greed.
Its irrelevant if they try and charge him £50 or £283.70 they are taking the p!ss

Orcadia

Contact the FSA http://www.fsa.gov.uk/ by phone explain the situation and listen to what they have to say, make sure you make reference to IC’s TREATING CUSTOMERS FAIRLY, http://www.fsa.gov.uk/Pages/Doing/Regulated/tcf/index.shtml establish a contact name and put your complaint in writing.

Ring the IC and tell them you intend making a formal complaint and see what they have to say. Send them a letter informing them of your complaint to the FSA, don’t send them a copy of the complaint.

Object to paying them any fees at all, not even 1p, you have saved them 1 months potential claims and they should be grateful for that never mind now trying to screw you.