Premium cost inc by 50% to cancel 11 months through policy - Swintons

redcar_2

I can see Swinton comes up regularly as clockwork on high car insurance cancellation fees! :rolleyes: I'm hoping someone can give some advice or maybe just sympathise with me.

Sadly the real redcar after many years of good service, but recent ill health, is being part exchanged for a new car. There is a month to go on the current Swinton insurance policy. The insurance premuim was paid in full at the start and being 11 months through I knew there would be no refund.

The cancellation fee is mentioned in the terms but I was wondering if anyone has successfully challenged this when it is a complete extra fee that needs to be paid rather than something they take out of any pro-rata refund? Thanks to good advice on this site, the policy was really cheap (even before cashback ) so this is adding almost 50% onto the normal premium cost. :eek:

There is some FOS guidance July 2006 on unfair contract terms that any insurance cancellation fee must be reasonable but the second example seems to suggest that a cancellation fee of £50 is OK although not exactly the same situation as mine. I can't see there is any more work cancelling it now compared to them getting notified that I don't want to renew in a months time, certainly not enough to justify 50% increase anyway.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

If I can't get out of paying any cancellation fee, then I got quoted £51.54 on the phone today rather than the £45 it says in my documents or the £50 it says on the website. I stupidly didn't ask why they are charging more than the docs say as I was a bit taken aback at the fee at all. Can I make them stick to the docs price even if their standard price has increased now?

In case anyone is wondering, I can't just continue the policy to the end as apaprently its not legal if you don't own the car and also I need to transfer the NCB to the new car policy.

Anyone got any success stories or argument ideas to give me hope?

cjgoodsell

I would challenge whats on your documents usually if there is a change during the year you have to be notified. But sometimes you can get the cheaper fee in this case until the new set of terms is issued to you at renewal.

What is the situation with you and this car?

If the insurer is declining the risk with a month to go then could be worth challenging the advisor to do some work on xmas eve and speak to the insurance company to see if they can give you this years NCD with a month to go sometimes they can.

cjgoodsell

redcar I have sent you a private message

redcar_2

Not sure what you mean by declining the risk could you explain? I'm assuming as they got paid a years fee to cover me for 11 months rather than 12 that it is a deal for them anyway?

I'm not asking for a NCB for this year as I realise I've not been covered for a full year.

cjgoodsell

Declining the risk - all insurers have a set of terms in their underwriting and sometimes you may fall out of those terms.

When ever a policy is cancelled usually any commision that is paid is then pro-rata and paid back to the insurance company.

I understand your not asking for the NCD for this year as you havent had a full year. Are you on the maximum years NCD? if not it might be worth asking after all it sounds like you are being asked to cancel when you dont want to.

dacouch

Why don;t you just let the policy run it's course, you won't get a refund but you won't be charged a cancellation fee

redcar_2

cjgoodsell wrote: »

Declining the risk - all insurers have a set of terms in their underwriting and sometimes you may fall out of those terms.

When ever a policy is cancelled usually any commision that is paid is then pro-rata and paid back to the insurance company.

I understand your not asking for the NCD for this year as you havent had a full year. Are you on the maximum years NCD? if not it might be worth asking after all it sounds like you are being asked to cancel when you dont want to.

Thanks - I've replied to you privately as well.

You are right - the new car I think does fall outside of the terms as I was told it is too expensive to be covered by my old company - I think it was an old bangers insurance only as the new car is only ~£7k so not majorly expensive!

Yes again!! I am on 9 years NCB currently working towards 10 so thats why the NCB for this year is not so critical.

Its not so much that I don't want to cancel but as far as I see it I can't claim my existing 9 years NCB to start to insure the new car before the date I cancel the old policy. I was also told by Swintons rep that once I have no financial interest in the car I can't legally insure it. I'd happily let the old policy just run through if that is a possibility as long as I can legally insure the other car and get the NCB benefit.

I just really want to know I've pushed it as far as seems reasonable for a hardened money saver - I appreciate it is in the T&Cs.

redcar_2

dacouch wrote: »

Why don;t you just let the policy run it's course, you won't get a refund but you won't be charged a cancellation fee

I wondered that too!! but I was told I can't just continue the policy to the end as apaprently its not legal if you don't own the car and also I need to transfer the NCB to the new car policy which I can't do apparently if its linked to a policy still running.

cjgoodsell

dacouch wrote: »

Why don;t you just let the policy run it's course, you won't get a refund but you won't be charged a cancellation fee

If doing that it could be difficult on getting the NCD transferred to another policy as its still live and sounds like a renewal notice hasnt been produced yet.

What I mean is if it runs out on 31/01/10 and needs it on the policy from today so couldnt technically use the NCD until then. So he would have to either set up on nil NCD until then and have his NCD applied at a later date, remove the NCD until renewal or see If he can get on to a "second car" scheme.

cjgoodsell

redcar wrote: »

I wondered that too!! but I was told I can't just continue the policy to the end as apaprently its not legal if you don't own the car and also I need to transfer the NCB to the new car policy which I can't do apparently if its linked to a policy still running.

Thats correct as you cant insure something you no longer have. With the NCD there are ways around which I posted above and hope others could help. How many years do you have anyway?

redcar_2

cjgoodsell wrote: »

Thats correct as you cant insure something you no longer have. With the NCD there are ways around which I posted above and hope others could help. How many years do you have anyway?

Nine from last year and maybe one more this year.

I'm guessing I can't use any of the 'ways round' as I legally have to cancel the old policy as I won't own the car after tomorrow.

I'm just wondering if I can argue the fee is a bit steep?