Motor Policy Cancellation Rights

alanlane

Hi all, I am having problems cancelling my motor insurance policy and was hoping for some help!

I started with my broker 4 years ago and they allowed me my full NCD of 9 years as a mirrored bonus as I was moving from a personal car to one insured for a new company. Since then they have sent my renewals with no reference to my NCD other than "refer to them".

This year they wanted to swap my insurers and only then did they send me something which showed my NCD was down to 4 years. Apparently, they had only given me the mirrored bonus for year one and then since I have been building on another NCD.

Now when I try to cancel the policy, they want to charge me £250 for 3 weeks of insurance. The charge covers set up fee, cancellation fee, loss of commission fee, deduction of initial discount and time on risk.

Please tell me that £250 for 3 weeks of insurance is not reasonable and give me a clue on how to change from these money grabbers???

dogbot

what sort of broker is this? Charge may well be made up of their comission, which depending on their terms of business they may be entitled to recover.

alanlane

They are supposedly a reputable broker specialising in commercial vehicles!

The lady in Retentions tells me that I owe them for the set up fee and cancellation fee, their loss of commission, time on risk and a repayment of an initial discount (really dont understand that one?). That makes £250 on top of the £90 I had already paid at renewals first monthly payment.

I am also trying to find out if they can change my NCD without proper notificastion so help with that would be appreciated.

lisyloo

Now when I try to cancel the policy

Why exactly do you want to cancel the policy?

The charge covers set up fee, cancellation fee, loss of commission fee, deduction of initial discount and time on risk.

Sorry but that all sounds above board.

Please tell me that £250 for 3 weeks of insurance is not reasonable

It's not jsut for insurance though is it?
It's for the time spent setting it up, the cancellation work involved, the commission etc.
You have cancelled an annual policy (the reason for which is unclear).
You can't expect people to work for free.

and give me a clue on how to change from these money grabbers???

You could make a formal complaint about their behaviour.
However I have noticed that you have failed to "refer to them" to check your NCD and you have accepted their quotes for many years.
If you weren't happy you should have chased it up at the time.

Also you could list out all the charges and check whether they are correct.
There are guidelines for cancellation fees and the time on risk should be in line with your polcy booklet (that you agreed to and did not reject within the cooling off period).
So you can check it's all correct.
If you post up all the details I'm sure people would help to advise if there is anything wrong.
If there's not then I'm afraid there's nothing you can do except try a complaint, after all you agreed to it all.

I am also trying to find out if they can change my NCD without proper notificastion

You got the notofication, but didn't "refer to them".

alanlane

I am cancelling because I had found out about the loss of NCD!

I was expecting a cancellation fee (£50) and also having to pay for the time on risk (3 weeks). Paying a set up fee (£20) for the renewal is acceptable although annoying but I think £340 is excessive for the "work" involved? Paying for "loss of commission" and a "policy discount" which no longer applies - how is this reasonable. I though fees were meant to reflect the work involved and insurers should not make profit from the process?

Quentin

These charges will have been agreed between you and your broker - or should have been!

Maybe they didn't get your agreement, in which case you can contest them.

Ask them to show when these charges where agreed.

lisyloo

I am cancelling because I had found out about the loss of NCD!

Have you actually checked how much more discount you'll get between years 4 and 9?
Very little, most companies don't accept more than 5.
I don't think you have quantified your loss.

how is this reasonable

I can't say for definite whether they are all legal.
You'd have to ring the FOS (financial ombudsman service).

It's not clear to me you've lost anything and although you've obviously angry about it, cancelling is not necessarily the cheapest route from the point where you are at the moment.