Car Insurance cancellation payback?

Yogaman_2

Has anyone got any advice about paying back premiums to insurance companies after cancelling the policy mid term?

I cancelled my private car hire policy 6 months in, was paying on monthly terms (sorry Martin but £2500 is a lot to cough up!), now they say I owe them £700+ for a cancellation fee!

Any ideas please????

Yogaman

Astaroth

You have no legal right to cancel the policy mid term, most insurers will however allow it but charge admin fees and will either only partially refund the premiums in cases where people pay in advance or charge some of the outstanding premiums for those paying by installments.

The only idea really is to pay it before they start charging interest/ late payment fees/ send to debt collectors

MarkyMarkD

As Astaroth states, insurance is an annual contract even if you pay monthly. There are almost always early cancellation penalties and these can be very substantial - you often get no refund of the annual premium 9 months or so in to the contract.

The cancellation terms are normally specified up front; if they are not, you can at least argue that they are unreasonably punitive and ask them to reduce them.

But you should certainly settle whatever amount you end up agreeing to avoid additional debt collection charges.

Yogaman_2

Thanks to both replies on this, looks like I will have to `pay up and look big`!!

Thanks
Yogaman