Cancellation fees on car insurance

james_autos

I'm looking to change my car but the company I am currently with is quoting absolutely ludicrous prices, i.e £8,000 difference between the £1,000 I pay now on a 1.6 petrol Peugeot and a 2.0 diesel Citroen!

I've had the policy 6 months and paid in full for 12, and after ringing them up they've said I will get roughly £50 back if I cancel as their policy is to keep 90% of the premium. Is this practice commonplace which insurance companies? It just seemed a bit steep to me, and after studying the policy documents there was no mention of how much of the premium they would keep if I were to cancel.

dunstonh

I've had the policy 6 months and paid in full for 12, and after ringing them up they've said I will get roughly £50 back if I cancel as their policy is to keep 90% of the premium. Is this practice commonplace which insurance companies?

Typically after 6 months you would expect more like 30-50% to be the refund plus a cancellation charge. To have 90% plus admin charge would be high and probably one that the FOS would not consider acceptable. That said, if you bought any addons (like breakdown cover and legal expenses) then you need to take those off that 90% as you dont normally get a refund on those if you cancel mid term. You have to look at premium only.

bouncydog1

Have a look under the "general conditions" section and there should be a section under "cancellation". My own policy states "Months you have had cover for", Percentrage of annual premium covering that period", "Percentage of refund".

For 6 months plus the premium requirement is full premium with a percentage of refund of nil.

Who is your policy with?

Interestingly how old are you as this may explain some of the premium increase - I hope you haven't bought the car yet!

mikey72

Have a look at this thead

post#147

https://forums.moneysavingexpert.com/discussion/comment/39938318#Comment_39938318

dogbot

If you bought though a broker they may also be making charges for the cancelation.

Regards the premiums quoted - assume you are a young driver? Motor insurance price is mostly down to the third party risk/cost not the cost of your car. See countless other threads about this.