Bennetts insurance Scam>can i do anything?

Trob

I went with Bennett's as they came out to be the cheapest broker on-line.
Everything was fine until today, when i sold my bike.

I thought well there is no point paying insurance for something i don't own so i will take the cancellation fee and close it. I was expecting a fee of around £30.

The customer service lady informed me that indeed the charge would be £30 and do i want to go ahead to which i said yes no problem.

She then said there will also be a charge of 80% of the policy

I was indeed shocked and said that cant be correct? So i said well it would be cheaper for me to pay the remaining 6months + the £30 fee, and she laughed and said,

"oooh no no no, Mr blah, its done now, we can not keep you on you have to pay the money"

I was paying by Direct Debit to a company Bennett's use called Close Premium Finance. "No-one else is Close" yeah to ripping people off.

So where do i stand?
Do i have to pay 80% of the entire policy?
Is there any way my bank can help me?

/sob sob Only 10 mins ago i was chuffed at selling my bike now i feel i have been robbed.

dogbot

In short, probably yes. You can try and complain about the proportion but probably will have to pay.

The costs of a policy are front loaded and often fixed - not spread evenly over a policy, so if you use half a year's policy then you still need to pay the majority of the costs. You are paying monthly so you are paying in stallments (i.e. on credit) for your years premium and so there are additional costs there - interest the finance company would have earnt. Bennetts are also a broker so costs can be a little higher if you cancel.

The details of cancellation will have been made availible to you before you bought the policy. If you didn't read them then that is up to you. At least you are getting some money 'back' (or reducing the amount you will be paying out).

You can't keep a policy running on a vehicle you don't own.

Trob

Thanks for the reply,

dogbot wrote: »

At least you are getting some money 'back' (or reducing the amount you will be paying out)

I wont be getting any money back if i had continued to pay i would of effectively paid 50% of the policy with no cancellation fee.

Instead i am paying 80% of the policy (on top of the other 50% i have already paid) plus the £30 fee.

/sigh i don't pay anything less just more but am sure its against some law to keep out a policy for something you no longer own.

So maybe this was unavoidable, or at least it makes me feel better to say that.

dogbot

Details:

http://www.bennetts.co.uk/Bike-Insurance/FAQ/#faq49

To be fair, i can't get a link to any wordings online!

dogbot

Sorry I think there is some mistake, you wouldn't have to pay more than the full annual amount! You are being asked to pay 80% of the premiums due in total surely?! They wouldn't charge you more than the full amount payable, other than the admin fee.

Trob

Dogbot, thanks for the link, your correct as per below,

"you will be charged a % of the remaining premium and we will charge our cancellation fee of £30"

She never said remaining, that would make much more sense.

dogbot

Yeah, i would say it will be that if you cancel at 6 months you have to pay a total of 80% of the annual premium plus £30 admin charge. That % sounds fairly typical as there are a lot of front loaded costs on a policy.

The fact that you are paying in installements can make things a bit confusing - as I say you have basicaly paid for the annual premium on credit, so they will now just adjust the payments in light of the new total payable.

Yantoo

2 days after my bike insurance ran out with Bennetts I phoned to get a renewal quote. The lady told me it had already been auto renewed at a price of £101 and that a letter had been sent out a few days before. I had no letter, when I said I had found a cheaper quote (£72) she informed me the cancellation fee would be £30.

I never new there was an auto renewal on the insurance.
She then quoted me £94 for a new policy but I still had to pay the cancellation fee.
Is this correct? And can I some how cancel the auto renewal so it does not happen next year?

alistair.long

Hahaha indeed, the ball is in your court not on their side.

It is illegal for a insurance company to charge the incorrect amount, even when the policy states 10, 20 30 40% deduction on a early cancellation. It must be pro rata + a cancellation fee.

I refer your to
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

half way down the page
"We concluded that the policy condition was unfair and contrary to the UTCCR. So we told the firm it should make a pro rata refund, after deducting a reasonable administration fee."

Advice them of the above and yes say "hahaha" to them also and that the refund must be for the days used less the £30 admin fee which you talk about.

alistair.long

Yantoo wrote: »

2 days after my bike insurance ran out with Bennetts I phoned to get a renewal quote. The lady told me it had already been auto renewed at a price of £101 and that a letter had been sent out a few days before. I had no letter, when I said I had found a cheaper quote (£72) she informed me the cancellation fee would be £30.

I never new there was an auto renewal on the insurance.
She then quoted me £94 for a new policy but I still had to pay the cancellation fee.
Is this correct? And can I some how cancel the auto renewal so it does not happen next year?

If you had not received a renewal quote within a reasonable time, then you have a right to cancel.
The notice must be given to you before renewal, and the fact it was sent to you 2 days before means that it would not have been deemed served upon you on the date of renewal.
Therefore the company owes you the money it charged you, or you can make a claim against them for taking funds without informing you, which is illegal.

Yes you can inform the company that the autorenewal is to be taken off, writen is best and keep a copy of the proof of postage.

Dave101t

you have to check your policy carefully regarding auto renew. I am with carol nash as they are basically, great.