Cancelling My Van Insurance (Its a Rip off)

nomis21

Hi,
Sold my van the other day and after selling i rang the insurance company to cancel the policy and my monthly direct debit payments.
I have about 80 pounds left to pay on monthly installments, anyhow they informed me that it would cost me almost 70 quid to cancel the policy for admin charges and cancellation fee? So i told them they were ripping me off considering i only have 80 pounds to pay for the term of the insurance cover. I hung up the telephone..!!!
So i thaught if this is the case i will just leave the policy running considering iam only losing 10 pounds in the long run and i will gain another years NCB, but am i allowed to do this when i have actually sold the vehicle? I dont want to get into trouble but it seems crazy to me that these insurance companies can charge so much for cancelling a policy which probably just means a press of a button and its cancelled..!
Thanks

lisyloo

It's not just pressing the button (we've had this disscussion many times before).
In order to have staff to press the button, you need to have computers, phones, electricity, buildings. You need health & safety policies, HR department, toilets, kitchens, fire extinguishers, first aid boxes. You need to pay for pensions, sick pay etc. etc. I could go on and sometimes I do :rotfl:

Anyway, leaving that aside, if there is a claim against the van and the buyer is uninsured, then in law your insurance may have to pay out a 3rd party claim (this is the law).
If this happens then I am not sure if you would have to declare it and therefore it could affect you badly in loss of NCD and having a claim.
I have kept my own insurance on a car I scrapped but I know there won't be a claim on it as it was scrapped.
So there may be risks in your case in keeping the insurance on.

pedro123456

Nomis.

You are being ripped off I agree, so is everyone else in your position.

Heads you lose – Tails you can’t win.

Unfortunately it will cost you whichever you go, the IC are having your money come what may, why?, you may ask?

Well because the IC have their loopholes lovingly referred to as T&C. :mad:

Sorry but that’s how the system works. It’s called greed without conscience :mad:

nomis21

lisyloo wrote: »

It's not just pressing the button (we've had this disscussion many times before).
In order to have staff to press the button, you need to have computers, phones, electricity, buildings. You need health & safety policies, HR department, toilets, kitchens, fire extinguishers, first aid boxes. You need to pay for pensions, sick pay etc. etc. I could go on and sometimes I do :rotfl:

Anyway, leaving that aside, if there is a claim against the van and the buyer is uninsured, then in law your insurance may have to pay out a 3rd party claim (this is the law).
If this happens then I am not sure if you would have to declare it and therefore it could affect you badly in loss of NCD and having a claim.
I have kept my own insurance on a car I scrapped but I know there won't be a claim on it as it was scrapped.
So there may be risks in your case in keeping the insurance on.

I Totally disagree with your first part of you reply..! Its pure extortion.
All the above is set up for a company to provide an all round insurance service, not just for cancelling policies. They make the bulk of there money providing policies in which case they need all the above (even the first aid box) but 70 pounds to cancel a policy, this is a good days wage for anyone living in the north and iam almost sure it does not take someone a full 8hrs to cancel one insurance policy.

lisyloo

All the above is set up for a company to provide an all round insurance service, not just for cancelling policies.

You haven't paid for an "all inclusive" service.
You have paid for a "no frills" version and you have to pay for any extras.
This is how they keep your premiums low (let's call it the "ryanair" business model).
Furthermore they do tell you about all the charges in advance, so you have a chance to read the policy before you take it.
If you didn't like the charges then why did you take out this particular policy?

but 70 pounds to cancel a policy

You need to get a breakdown for this figure.
The chances are that part of it is an admin fee and part of is is for the remaining premium for the time you've had on cover.
Note it's likely that your direct debits do not match exactly the premium for the insurance you've had so far. There is probably a shortfall.

In one sense you are right, that £70 is too much.
The Financial Services Authority who are independent have guidelines that say that £50 is the maximum.
I don't know how much your cancellation fee is, but I expect part of the £70 is for an outstanding premium.
If you want to know the exact figures you would need to ask your insurer for the break down.

If the cancellation fee is over £50 then make a formal complaint.
If it's £25 for cancellation and £45 remaining premium then you do not have any contractual/legal justification for a complaint (but there's nothing to stop you haveing a go).

mluton

Pause your insurance till you get a new van/car

lisyloo

Good idea, some will only pause it for a short period though.