Percentage cancellation fee and adminstration fee - Car insurance

J_Champion

I am shortly getting a company car and have cancelled the policy with Budget insurance for my private car which I have just sold.

When I called, Budget informed me that not only do I have to pay a £35 administration fee I also have to pay a percentage of my policy (£145) for early cancellation. So total of £180 which to me seems steep.

The reason they gave for the cancellation policy is because they are 'not a short term insurance company'.

Although this was on my policy t's and c's I wasn't made aware of this and I think it seems a bit unfair.

They plan to take the money out of my bank (I paid my insurance by Monthly Direct Debit) at the end of the week and I feel like cancelling it so they can't take the money.

Has anyone else had an experience of this? Is it correct?

Thanks in advance.

Quentin

If you search this topic in this forum you'll find that it happens all the time, and comes as a shock. Also that although cancelling your dd will stop them taking the money, it won't stop them pursuing you for the debt!

J_Champion

Yes I don't intend to cancel my direct debit. And since posting this, I have seen other peoples questions/responses in similar situations. I guess it's my own fault for not reading the small print but sometimes you just don't have time. I did read somewhere that £50 is seen as a fair amount, obviously mind is way over this but I guess that doesn't matter? Thanks.

Quentin

The "fair" £50 is for the admin fee - which you are being charged £35 for, not the total cost of cancellation including the fee and any premium still due.