Insurance cancellation rip off charges

Plongy_2

Arguing unfair bank charges has had a lot of coverage recently which got me thinking when my insurance company told me they were charging me £50 to cancel a policy. This particularly annoyed me as i have had insurance with this company for many years but because i was in the first year of insurance on this particular car they say they are justified in charging £50 for what amounts to pressing a couple of buttons. They have even sent me a schedule of D/D payments. I have cancelled the D/D and am waiting for their next move. I think this is a rip off, what do you think? Does the same principal of the bank charges apply here? Needless to say I wont be using them again, after all there is a myriad of insurance companies out there to choose from.

ADAM001

i had this once before with churchill once,their argument was as i payed monthly dd i was in a 12 month credit agreement and i was technically breaching the contract,however be careful as they didnt charge me a cancellation fee(as agreed on phone) but carried on and charged the remaining payments from my bank all in one go-a nasty letter and the threat of trading standards did the trick,not only did i get my dosh back but they gave me thirty quid extra as the old "gesture of goodwill"

dunstonh

Car insurance is an annual contract which is mean to be paid in a single payment. If you choose to pay that in installments under a credit agreement then you should expect to pay a penalty and it would be inappropriate to pass your costs onto others.

I think this is a rip off, what do you think?

Nope. Its the consequence of a loss making insurance policy. The insurance premiums are low but those using other services pay for them. If you dont create work, you dont pay for it.

In the past, the insurance premiums were more expensive and covered the costs of people requiring additional work. Nowadays with too many companies chasing too small a premium the additional services get charged for to keep the main premium down.

Does the same principal of the bank charges apply here?

I'm no solicitor but I cannot see any connection.

Needless to say I wont be using them again, after all there is a myriad of insurance companies out there to choose from.

...virtually all of them charging on the same basis.

c_smith

I've had to contact my insurance company in the past to have a courtesy car added to my insurance whilst mine was in for repair under the warranty, and was charged over £20 each time for the privilege.

I've also been charged over £20 to have my insurance transferred over when I've purchased a new car, even when the new car is a lower insurance group than the old one and logic would dictate that they should owe me money.

I have always paid my full insurance premium up front, therefore there would be no Direct Debit adjustments, etc, to justify them charging me extra. So, yes, I also believe that insurance companies are ripping us off as and when the get the opportunity.