Post Office Car Insurance

Angryaboutinsurance

Here is a warning to all people insuring with the post office. If you want to cancel mid term, then they apply what they call their short term cover rates. This is in the small print. This means your refund is hugely reduced- in my case by over £100- which is a joke when they lure you in with a £50 refund on insurance. My insurance has several months to run and I am getting £17 back. If I stayed with PO I would not lose this, but they are quoting me a higher premium than I can get from shopping around. If you know you will be changing your car as I did- then don't take this insurance out.

Natbag

Definitely always check the cancellation and refund fees before taking out car insurance and make sure you get this in writing - and store it safely. If you don't agree to the charges, or think you may be stung by them later, don't take out insurance with that provider, shop around. Where I work we have to read out the cancellation fees terms and conditions in full before we take any payment, although our fees are quite low in comparison to some I've heard about, like yours.

DCFC79

Its the pitfalls about it OP, everyone has early cancellation fees,

Angryaboutinsurance

This is more than a cancellation fee- this is applying a whole different insurance rate for the duration of the policy.

mikey72

Make a formal cpmplaint, then refer it to the FOS.
They have already ruled on pro rata refund, and up to a £50 fee.

https://forums.moneysavingexpert.com/discussion/comment/39938318#Comment_39938318

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

bouncydog1

Not quite cut and dried though as we don't know exactly what the OP purchased. If there were add-ons such as breakdown cover, legal expenses etc, then these premiums are not normally refundable.

There is also the question of the £50 refund - it is quite likely that this will be clawed back in whole or in part.

Firms are also entitled to charge an admin fee.

OP - have you asked the Post Office for a full breakdown of the refund - I should ask for this before you start complaining to the FOS otherwise you could end up incurring a lot of work for yourself only to find that your complaint will not be upheld.

Get the breakdown, post it up and then people will be able to tell you if they think you migh have a justified complaint.

mikey72

bouncyd!!! wrote: »

Not quite cut and dried though as we don't know exactly what the OP purchased. If there were add-ons such as breakdown cover, legal expenses etc, then these premiums are not normally refundable.

There is also the question of the £50 refund - it is quite likely that this will be clawed back in whole or in part.

Firms are also entitled to charge an admin fee.

OP - have you asked the Post Office for a full breakdown of the refund - I should ask for this before you start complaining to the FOS otherwise you could end up incurring a lot of work for yourself only to find that your complaint will not be upheld.

Get the breakdown, post it up and then people will be able to tell you if they think you migh have a justified complaint.

One letter of complaint to the insurer, then a re-draft to the FOS isn't going to be a lot of work.