Car Insurance Policy

davep123

Hello,

I have an Insurance policy with "ibuyeco" just before Christmas I sold my car. So thought I'd be able to cancel my policy which I had been paying for monthly anyway.

I was told at the time If I want to end the policy I'd have to pay off the policy thus still paying a full years policy. Plus an admin fee to go with it.

So it worked out cheaper to carry on paying for the policy on a monthly basis even though I had sold my car.

I would like to know if this is legal or have I been ripped off.

mikey72

It depends on how much you were paying, and for how long.
According to the FOS, it should be a roughly pro rata refund, plus a cancellation fee of no more then about £50.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

Flyboy152

davep123 wrote: »

Hello,

I have an Insurance policy with "ibuyeco" just before Christmas I sold my car. So thought I'd be able to cancel my policy which I had been paying for monthly anyway.

I was told at the time If I want to end the policy I'd have to pay off the policy thus still paying a full years policy. Plus an admin fee to go with it.

So it worked out cheaper to carry on paying for the policy on a monthly basis even though I had sold my car.

I would like to know if this is legal or have I been ripped off.

Have you made a claim on the policy?

davep123

No no claims made with them, or any other previous insurer.

Hammyman

Point to note is that when you pay monthly, nowadays you're taking out a finance loan and its a separate financial agreement and that would still be payable even if you cancel the policy.

thenudeone

You will probably find in the small print that you have purchased an annual policy, regardless of how often payments are made, so a cancellation charge will probably apply.