Home contents insurance cancelation costing more than the full premium?

crazycano

I started my insurance with Admiral in March and paid a premium of approximately £70 for contents only of my flat. Which I paid in full.

I am now moving abroad, so no longer require contents insurance from 1st September.

When I cancelled my policy I was expecting a small refund, but they said I owe them £8.01. As my cancelation fee is £45 and I've used approximately £35 of cover pro rata.

This seams extremely unfair to me, as how could it possibly cost more to cancel an insurance policy 6 moths early than to insure me for 12 months and cancel it then?

I asked them to waiver the £8.01 as a good will gesture, but no luck…. I'm sure this is going to be more hassle fighting this than its worth to save £8.01 but it made me a little mad!

Am I right to fight this, or have I got it all wrong? Any help would be great, it seams to be me like I'm being punished unfairly for cancelling my policy early.

Thanks
Alex

StephenMarsh

Technically they are within there rights to ask for this as the cancellation fee will be in the terms of the policy.

From a customer service perspective I think it stinks and coming at from a personal point of view I would fight it. Ask for a manager and not some jobsworth who answers the phone im sure if you get to the right person somewhere down the line someone will see sence and waive the £8. It will cost them more to attempt to claim it from you anyway.

If a manager wont waive it ask for the complaint proceedures and tell them you are prepared to take it as far as is necessary and I just cant see them mantaining there stance for £8

iamana1ias

StephenMarsh wrote: »

Technically they are within there rights to ask for this as the cancellation fee will be in the terms of the policy.

From a customer service perspective I think it stinks and coming at from a personal point of view I would fight it. Ask for a manager and not some jobsworth who answers the phone im sure if you get to the right person somewhere down the line someone will see sence and waive the £8. It will cost them more to attempt to claim it from you anyway.

If a manager wont waive it ask for the complaint proceedures and tell them you are prepared to take it as far as is necessary and I just cant see them mantaining there stance for £8

:rotfl:

So when a company acts within the rules you agree with them, and is entitled to make the charges they are making, you think you should rant and rave and demand they do something different?!

OP, there isn't anywhere 'further' you can take it - the FOS deems up to £50 cancellation charge to be fair. After all, you're the one breaking the contract, not them.

crazycano

Thanks Stephen, I agree they're probably technically right. But as for customer service it sucks!

I did speak to the 'manager' but she declined to waiver the fee. So I think I'll just have to write them a letter and make enough phone calls to ensure its cost them more than the £8, then maybe I'll feel at peace with it..!

crazycano

iamana1ias wrote: »

:rotfl:

So when a company acts within the rules you agree with them, and is entitled to make the charges they are making, you think you should rant and rave and demand they do something different?!

OP, there isn't anywhere 'further' you can take it - the FOS deems up to £50 cancellation charge to be fair. After all, you're the one breaking the contract, not them.

I agree there may be no further to take this, but I may as well try. If it was my company and I was dealing with this, I would think it was silly and waiver the fee.

StephenMarsh

iamana1ias wrote: »

:rotfl:

So when a company acts within the rules you agree with them, and is entitled to make the charges they are making, you think you should rant and rave and demand they do something different?!

OP, there isn't anywhere 'further' you can take it - the FOS deems up to £50 cancellation charge to be fair. After all, you're the one breaking the contract, not them.

Ive clearly stated that technically they are right but from a service point of view I think its wrong, not once have I said the OP should rant and rave or make demands.

and to suggest there isnt anywhere to take is also wrong if the OP hasnt taken it to a manager or someone senior, I didnt recomend the FOS because as you say they would uphold the cancellation charge however I have suggested that for £8 it would not be cost effective for the insurer to try and enforce it and if he speaks to the right person there is a good chance it will be waived.

vaio

Don’t cancel it?

Or rather rescind the existing cancellation?

Or would that cost you another £45 admin fee?

crazycano

vaio wrote: »

Don’t cancel it?

Or rather rescind the existing cancellation?

Or would that cost you another £45 admin fee?

I asked if I could just leave the insurance to run its course and not renew it in six months time. But they said I couldn't because technically the contents would be insured twice, if my tenant insures their contents too. Is that correct?

iamana1ias

crazycano wrote: »

I agree there may be no further to take this, but I may as well try. If it was my company and I was dealing with this, I would think it was silly and waiver the fee.

I don't believe you. Who goes into business nit to maximise income? What would be your cut off point for these waivers? £10? £50? £100? What if those waivers, when all added up, means you can't afford to pay claims or staff?

lisyloo

It may be better to just let the insurance run.
With car insurance there can be legal implications (as insurers have obligations under the road traffic act) but I can't think of any nasty implications of just letting a home policy continue.

Of course they might have already cancelled it now and it might be too late.

I think I would write a letter of complaint asking how it can cost £45 to cancel a policy that only costs £70 for a years cover, plus mention you are also an active contributor to the countrys top financial forums nationally and clearly couldn't recommend their service to anyone.
Hopefully they will realise it's going to cost a lot more than £8 to argue with you.

crazycano

I think iamana1ias got out of the wrong side of bed this morning.... or works for Admiral:beer: