Cancel policy

Mark_petty

Hi

We have just signed for our new mortgage with the Abbey but they also talked us into signing for home insurance & life assurance. I have recently found them cheaper elsewhere. I haven't paid anything as of yet but just wandered whether you can cancel policies or do you have to pay something to get out of it?

Thanks

Mark

Astaroth

It depends... you are entitled to cancel a policy within 14 days from either 1) start of the policy or 2) receiving the policy documents - which ever is later. They are entitled to charge an admin fee and proratered insurance fees for any days cover you have had.

After 14 days there is no legal right to cancel but most insurers will allow it for a larger fee and also giving a less than proratered refund.

Remember that in addition to the insurance side of things you may also be charged a fee on your mortgage for switching insurance provider... but check with the insurer you are moving to as some will pay this fee for you to secure your business.

rrwfotr

Hi I have a question/problem....

I have 5 years no claims built up for my car insurance, it now coming up for two years (this Dec) that I would of been uninsured for a car policy myself. I am aware that if I go over two years without having a main policy myself I will lose my full no claims. My question is that can I insure my own car that I have but not used for up for the 14 day's and then cancel the policy. Therefore I will have renewed myself for another two years. I don’t need to drive as I usually use the other half's car for the odd journey etc?? I don't really fancy re-building my 5 years no claims bonus just in case I need the day to day use of a car for myself in the future. Any help information would be much appreciated....

Mark_petty

Thanks Astaroth
So in theory my policy doesn't kick in until I exchange contracts so I 14 days after that to cancel

Astaroth

yes Mark... but if you wait for it to kick in there will be (potentially) more to pay - ie the cover you have had (though some insurers just cancel it without charge)