cancelled car insurance... please help!

julie_mason

I have just cancelled my policy after two months because I sold my vehicle. The yearly cost for the policy was £1100, and I was paying £107 monthly. The insurer is now saying they want a further £364 for cancelling the policy early. Therefore it will have cost me £584 for 2 months, when 12 months was only £1100... Can they charge this extortionate amount, or is there some way out of this??

huckster

Yes they can charge that amount for 2 months cover and there is no way around this. If you have already cancelled, you could ask them for a full breakdown of the calculation, so you can see how they have arrived at the amount quoted.

The cancellation charges should be noted in your policy documents. The Insurers charge what are in effect short term rates and include a cancellation fee.

If you are looking to buy another car, have you thought about asking them to suspend the policy cover, so that you can use the premium to Insure another car.

dunstonh

Can they charge this extortionate amount, or is there some way out of this??

its not extortionate. The problem is that you have used credit to pay for an annual premium. You have cancelled after just 2 months so you probably need to pay 4 months equivalent plus cancellation charge. If you included any addons (like RAC) then they dont get refunded so you need to pay the full amount.

As huckster says, you can request a breakdown but the problem is that you have cancelled too short into contract and you were paying monthly.