Car Insurance cancellation charge £102.31!

debsleypig

Incyder wrote: »

I would (you don't have to) but I would, let the policy run on till the end. Cancelling it means you won't gain a year of no claims bonus for next time you insure.
I know there is some bollux about not being able to have insurance running on a car you have no interest in any longer but I would, and have, ignored that (you don't have to)
That way you will save just over £22 against the cancelling charges, save a lot of hassle and paperwork and arguing with Hastings and you get a years no claims as you reach the end of the policy. Everyones a winner.

I know. But the car insurance is all in hubbies name, so he had to do all the phone calls. I was gesturing at him to not make a decision to cancel it there and then but to call them back later once we had a chance to think it through and talk to the other insurance company on our 2nd car. So, too late, and it has already been cancelled as of tomorrow.

dacouch

mikey72 wrote: »

No mention of
Additional product charges: 26.99.
Arrangement fee: 5.00.

So the premium refund should be in the order of £60 if there are two months to run. You could write a letter of complaint, and threaten to complain to the FOS, it's free to you, and they may agree that just taking the two remaining payments would be fairer costwise, or just the cancellation fee.

My reading of that, is that Hastings have given the OP a breakdown of the original costs at the start of the policy and then the credits / debits for cancelling it.

The £5 arrangement fee sounds like a new business fee, the £26.99 sounds like an add on eg Legal Cover and the interest for paying over instalments.

The reason I say this is you would not add an "additional product charge" to a cancellation and you would also not add interest. (You might find an interest charge showing as a credit against a cancelltion eg a refund of the unused interest.

If I'm correct then the additional policy fee, interest and arrangement fee would stand

dunstonh

mikey72 wrote: »

So
if you don't make a complaint, you will definately not get any money back.
if you do make a complaint, you may get money back, and they'll even look at the £50 cancellation fee again?
So, you may lose the price of a stamp, you may gain ££'s

Correct.

However, the £500 charge the company has to pay the FOS along with all the other £500 charges they have to pay (as well as their own internal costing for valid and try-it-on complaints) will be factored in to the costs of pricing the premiums for everyone else. So, the cost will be factored in to increased premiums.

Personally, I think if a complaint is made they will likely reduce it to save it going to the FOS. Its cheaper for them to settle early. Once it goes to the FOS, they are likely to dig their heels in as its already cost them the £500. So, they may as well withdraw the goodwill offer at that point and let the FOS decide.

mikey72

dunstonh wrote: »

Correct.

However, the £500 charge the company has to pay the FOS along with all the other £500 charges they have to pay (as well as their own internal costing for valid and try-it-on complaints) will be factored in to the costs of pricing the premiums for everyone else. So, the cost will be factored in to increased premiums.

Personally, I think if a complaint is made they will likely reduce it to save it going to the FOS. Its cheaper for them to settle early. Once it goes to the FOS, they are likely to dig their heels in as its already cost them the £500. So, they may as well withdraw the goodwill offer at that point and let the FOS decide.

I agree with that bit anyway.