cancellation of motor insurance

ADC_3

Sold my car so rang up this morning to cancel the insurance and receive a refund. They said no. I asked why not - they said ir was in their terms and conditions (which they emailed me after I took out the policy) ((and which they didn't tell me at the time I took it out over the phone)).

I said can I speak to your supervisor as I wasn't happy. She said no. I asked for the address of the complaints dept. She said we don't have one.

I asked if I could suspend the policy. She said no. I asked if I could transfer it to the hnew owner. She said no. She also said now I had told them I had sold the car the policy would cease to exist in 14 days.

Am I right to feel disgruntled? There was 10 months to run; I'd paid up front; I did ask them to quote on the new car but their quote was way too high. This is a well known name in the field.

What's the next step?

lisyloo

Have you had a claim?
Are you paying monthly?

It's standard practice to charge a lot more for 2 months cover than for 12 months (relatively speaking).
The insurer make economies on annual policies for you cannot expect to get the policy for 2/12th.
The short term rates are normally published up front.

There is also usually an admin fee.

It's quite common that the cover you've had plus admin fee would not entitle you to a refund.

Their service sounds terrible from your description.

I would ask them for a breakdown of the costs.
Unless you've had a claim, most likely explanation is that the short term cover costs plus admin fee wipe out any refund and you are not due one, however they should explain this to you better than they have.

I suspect you are not entitled to fee l disgruntled about the costs which generally are provided up front, but you are entitled to feel disgruntled about their service and explanation which sounds terrible.
Unfortunately these days because customers put value on prices we get terrible service from call centers.

dunstonh

they said ir was in their terms and conditions (which they emailed me after I took out the policy) ((and which they didn't tell me at the time I took it out over the phone)).

It would be unrealistic to expect them to read the T&C to you over the phone. It would take hours. Key facts are given and you are supplied the T&C within the cancellation rights period and many have them on the website so you can research in advance.

Am I right to feel disgruntled? There was 10 months to run; I'd paid up front; I did ask them to quote on the new car but their quote was way too high. This is a well known name in the field.

You should get some return of premium if it was just 2 months into the policy year and you paid in full up front. Typically, its not pro-rata and its subject to a charge but something along the lines of 8 months premium refunded minus upto £50 admin is what you would consider average. That is unless you have had a claim. In which case you are not entitled to a refund.

What does it say about cancellation and refunds in the T&C.

ADC_3

It was in the T&C, well in an amendment to the T & C emailed as part of the renewal process.

"The insurance has been arranged on an annual contract basis. As a result if this insurance is cancelled after the 14 day right to change your mind cooling off period there will not be a refund of premium given and the full annual premium is due"

Like most people I didn't read every page. (there were 10).

So technically it's my fault. But ethically I'm not happy.

It was classic car 3000 miles policy. Does this change anything?

At present I've paid for a 12 month product and they've cancelled it because I sold the car and kept 10/12th of the money. I don't mind an admin fee but this seems like an unfair term in a contract.

masterlumps

it may seem an unfair term in the contract, but i would bet money that you are deemed to have accepted that term

i only ever pay monthly insurance for this very reason

Quentin

masterlumps wrote: »

i only ever pay monthly insurance for this very reason

That wouldn't help you avoid such a condition! (Assuming you mean you pay by instalments for a 12 month policy).

lisyloo

but this seems like an unfair term in a contract

Can't answer it legally.
Do you have legal advice free on your home insurance policy?
If so give their solicitors and ask if it would qualify as an unfair term.

There are quite a few policies like this that are annual so I'd be personally suprised if it was legally unfair.

i only ever pay monthly insurance for this very reason

You would still owe the money even if you apid monthly.
They would proabbly pursue the debt, possibly seeling it on to a debt collection firm.
If you don't pay you could get lots of hassle and ultimately a bad credit rating.
I don't see how you think you are proptected.

shelly42

ADC wrote: »

Like most people I didn't read every page. (there were 10).

It's a sad reflection on society that people can't even be bothered to read a 10 page document these days.

But they're ok to have a moan about it once it doesn't work out in their favour though.

ADC_3

fair point but the insurance company are now enjoying 10 months where they have my money but are not exposed to any risk at all.

lisyloo

fair point but the insurance company are now enjoying 10 months where they have my money but are not exposed to any risk at all.

So.......

Put some effort in up front and don't give your custom to a comapny like that.
Problem is that involves some reading.

If you don't want to do the reading then go to a broker.

But bear in mind if you want excellent service then you are likely to have to pay more.
What were your criteria when you shopped around?
I'd hazard a guess that price was fairly high on your list and that checking out the service they offered was fair low?

I'm not judging you but because as a society we value price highly and service lowly (by the products we buy) then that's what we tend to get - low price, low service products.
If you are prepared to shop around and not use price as your only criteria then you might get a deal that you're more happy with.

BUT it will involve more money and more reading :-)

vaio

ADC wrote: »

It was in the T&C, well in an amendment to the T & C emailed as part of the renewal process.

"The insurance has been arranged on an annual contract basis. As a result if this insurance is cancelled after the 14 day right to change your mind cooling off period there will not be a refund of premium given and the full annual premium is due"

Like most people I didn't read every page. (there were 10).

So technically it's my fault. But ethically I'm not happy.

It was classic car 3000 miles policy. Does this change anything?

At present I've paid for a 12 month product and they've cancelled it because I sold the car and kept 10/12th of the money. I don't mind an admin fee but this seems like an unfair term in a contract.

The FOS have a requirement that insurance companies treat policy holders “fairly” and they tend to err towards the consumer.

Might be worth giving them a ring and explaining and see what they say.