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Car insurance cancellation

We agreed to change car insurance companys and all went through and the payment was taken from our credit card. However we noticed an error when the documentation when it came through and contacted the company. The reg was not correct but they state we must have made the error on the internet form.

Anyway moving on they now say if we wish to cancel the policy (which does not start until the 17.4) we would need to pay a cancellation fee of £25.00. When I queried this they said it was in their terms and conditions if cancelled within the first 14 days.

However if the insurance was bought over the internet through one of these comparison sites I thought there was a cooling off period and you had to the right to change your mind.

Please can anyone advise.

Comments

  • dunstonh
    dunstonh Posts: 121,287 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    However if the insurance was bought over the internet through one of these comparison sites I thought there was a cooling off period and you had to the right to change your mind.

    There are no distance selling rules applicable to insurance. You have the standard insurance right to change your mind. However, the provider is allowed to charge a cancellation fee as long as it is published in their T&C.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    There are no distance selling rules applicable to insurance. You have the standard insurance right to change your mind. However, the provider is allowed to charge a cancellation fee as long as it is published in their T&C.

    Are you sure because I thought distance selling was to do with all UK busines.
  • dunstonh
    dunstonh Posts: 121,287 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 31 March 2011 at 11:41AM
    Are you sure because I thought distance selling was to do with all UK busines.

    http://www.adviceguide.org.uk/index/c_buying_over_the_internet.pdf

    see page 2 where is says:

    These rights do not apply, for example, when buying:
    • financial services such as insurance or banking. However, you may
    have other rights when you buy some types of financial service over
    the internet, for example certain types of loan


    You do have cancellation rights but they fall under financial services regulations which largely mirror the requirements.

    http://fsahandbook.info/FSA/html/handbook/ICOBS/7/1

    the effects of cancellation covers the right to charge under ICOBS 7.2.2 to 7.2.4: http://fsahandbook.info/FSA/html/handbook/ICOBS/7/2
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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