Car insurance cancellation

gaelleboo

I need some help!
We're taking delivery of a new car on Thursday. I phones my insurers (Zenith) and told them of the change of car, they said that they couldn''t insure this new car as the value was too high. This means that we have to cancel our current insurance and go somewhere else. Problem is that they are going to charge us the rest of the premium (10 months is left on the policy!).
I feel that this is outrageous as they are effectively the ones cancelling the policy. I've looked through the documents and can't find anything which says "if you get another car of higher value we won't insure you".
Is this legal?
Thanks.

mikey72

No in a word.

They can only charge pro rata, and up to £50 cancellation fee.

Write them a letter of complaint, and if they don't resolve it, complain to the FOS.

Refer them to

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

vaio

They are free to insure (or not) anything they like, if you aren’t happy then move your business elsewhere.

If you cancel then you should pay for the time on cover at pro-rata price plus an admin fee of up to £50 although often if the policy is being cancelled because they won’t insure your new car then they will waive the admin fee.

dacouch

Sounds like the OP has had a claim

dunstonh

Problem is that they are going to charge us the rest of the premium (10 months is left on the policy!).

The only time that occurs is if you have had a claim (and rightly so).

Is this the case or is there more info we dont know yet?

packet04

You should pay for the time on cover pro-rata and up to £50, and best is to write a complain letter to them, if they don’t do something about it, straight your complain to the FOS.