Cancelling/moving contents insurance policy.

pjgoober

I'm currently moving and need to change my contents insurance to my new house (which is in a cheaper area - car insurance has gone down by 1/4.)

Endsleigh want £50 to transfer or £75 to cancel.

I can get a new policy for much cheaper than I'm paying anyway, so cancelling would be cheaper. I'm loathed to pay £75 for someone NOT to insure me though.

It seems to me that they know they have a £75 cancellation fee in the small print (I have requested a copy of the T&C's and the breakdown of this cost) and so they are charging over the odds to move the account (basically, we know you're not going to cancel so we'll charge you £50 for nothing)

Is there any way I can get out of the policy without paying through the nose to do so?

Are they breaking any rules? Are they obliged to not massively and unreasonably hike prices just because you're moving so they can?

*Scarlett

Most companies will charge a fee for a mid-term adjustment ie address change and / or a cancellation fee. These will vary but I too would be gutted at having to pay £75. These fees are in your policy documentation somewhere.

I don't object to these fees in principle as there is obviously work involved in changing policy details, new paperwork, admin costs, etc. As far as cancellation goes, insurance is usually a 12 month contract and I would expect to pay a fee to cancel early.

If you have found a better quote elsewhere check with the new insurer if they would pay or contribute to cancellation fees. Some do, up to a certain amount - you would normaally pay the fee and claim it back from them.

Financial Ombudsman has some info on this (but it seems to be from 2006). You can have a read and see if you think it's worth pursuing.

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

Hope this helps.