Car Ins Cancellation Charges

MarkyMarkD

dacouch wrote: »

Bank charges are different as they are deemed to be a penalty, the charge from your Insurer is not a penalty. You have entered into a twelve month contract with them, you are breaching the contract by cancelling early so they are recovering the costs involved for them to cancel and the loss of profit for the year (They will probably not be able to recover the commission they paid the broker or website that you used to find Service).

No, actually the bank charges case ruled that they were NOT a penalty.

Ending an annual insurance contract early is not a breach of contract; it is a right you are permitted under the contract, subject to a short term premium rate.

Apart from that, the part about up-front commission costs may indeed be correct (although it depends on the commission agreement).

PJB

MarkyMarkD wrote: »

No, actually the bank charges case ruled that they were NOT a penalty.

Ending an annual insurance contract early is not a breach of contract; it is a right you are permitted under the contract, subject to a short term premium rate.

Apart from that, the part about up-front commission costs may indeed be correct (although it depends on the commission agreement).

Thank you for pointing that out

lisyloo

seems a bit harsh, do you say the same about all that have/are battling banks regarding charges? I take it you didn't try or reclaim any charges!

Yes I would say the same about bank charges (although legally there's a difference from your case).
No I haven't tried to reclaim.

Simple answer is that i did not know my circumstances were going to change and thought at the time i would need the insurance for the year.

Yes, sometimes things do change. Sometimes it's something you have control over (like changing your car out of choice), other times it's not your fault (death, sickness, accident etc.).
But even when it's not your fault, it doesn't automatically mean it's up to the other party to pick up the bill when you have a contract.
Sorry if that sounds harsh and I'm sorry you aren't getting the answers you want.

You could try a formal complaint and you might get something as a "gesture of goodwill" if they don't want the costs of arguing with you and you're prepared to push it.
But contractually it doesn't look like you have much of a case.

If you do get something (which is not guaranteed). it won't be because you are right, it will be because they think it's cheaper than arguing with you.

PJB

lisyloo wrote: »

Yes I would say the same about bank charges (although legally there's a difference from your case).
No I haven't tried to reclaim.

Yes, sometimes things do change. Sometimes it's something you have control over (like changing your car out of choice), other times it's not your fault (death, sickness, accident etc.).
But even when it's not your fault, it doesn't automatically mean it's up to the other party to pick up the bill when you have a contract.
Sorry if that sounds harsh and I'm sorry you aren't getting the answers you want.

You could try a formal complaint and you might get something as a "gesture of goodwill" if they don't want the costs of arguing with you and you're prepared to push it.
But contractually it doesn't look like you have much of a case.

If you do get something (which is not guaranteed). it won't be because you are right, it will be because they think it's cheaper than arguing with you.

View must be nice on that high Horse!

If i were to complain to the ombudsman there is a chance that i would get something as spoke to them today and they agreed in principal that the charges sound too high, so don't bang your head falling off that horse. How do you like them apples!:whistle:

dunstonh

as spoke to them today and they agreed in principal that the charges sound too high

The FOS generally agree with everything when you phone them. There have been test calls made to them on cases where there is absolutely nothing wrong and they have followed the usual line that they would like to look at it or there could be something to look at.

The FOS publications show complaints in this area and some are upheld and some rejected. They have confirmed that the cancellation refund doesnt have to be pro-rata and they generally accept cancellation fees of upto £50.

PJB

dunstonh wrote: »

They have confirmed that the cancellation refund doesnt have to be pro-rata and they generally accept cancellation fees of upto £50.

There % system works out at £120 above pro-rata!