Cancelling ASDA Car Insurance

tasha1978

Hi all, hope there is someone who can help! My brain is mush thinking about how this figures.. here goes...

I took out my car ins out in Dec 2010 The premium was about £529, I paid a deposit of £102 and agreed to pay the remainder over 9 monthly installments of £54.70

I have made 6 payments out of the 9 and had to cancel due to my husband being added to my policy (long story but not important)

This is where I am confused :S I received an email stating that I would be refunded only £26

I'm not sure if I'm working this out right but...

I have paid 6 x £54.70 payments plus the £102 deposit, which I make as £430

The cancellation fee is £75 plus a direct debit fee of £27.50 (really need to ask about this one cos I can't find this charge anywhere in the paperwork!) The charge for the time I was insured pro rata is £244. All of this adds to £346.50.

This is where I get confused! The interest was added originally onto the finance (£66.07) So surely I wouldn't have to pay any more?

I have spoken to Asda and Panacea but cannot seem to get a simple response! I've got to ring again tommorrow.
Hopefully someone out there could explain how this works. Thanks.

Quote

It depends on the date of cancellation and the cancellation charge. It sounds about right.

mikey72

Write a formal letter of complaint, stating that you disagree with the cost of the cancellation.
State you will refer the complaint to the FOS if they do not resolve it fairly.
You should pay a pro rata premium for the year, and up to a £50 cancellation fee.
The interest isn't a major amount, so see what they say.

It costs nothing to refer it to the FOS, apart from the price of a stamp, at worst they will not uphold your claim, at best your insurer will be told to refund.

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

tasha1978

I don't really mind the cancellation fee, I did know this when I cancelled. my main issue is with the amount we have paid. The figure they say we have paid does not tally with the amount they have said.

I'm unsure of how the finance and interest works, If the interest was added to the finance originally; then surely the amount owed to us should be more?

So confusing to me :huh:

mikey72

If the figures don't make sense, run them past the FOS, either they'll be right, and you won't have a claim, or they'll be wrong, and they won't understand them either, and they'll insist on the correct figures.