SORN - Cancelling insurance

3_kids_2_jobs_1_dog

Hi, just wanted to pick a few brains.

I am seriously thinking of SORNing my car at the end of the month, obviously to save money, the tax expires on 31/9. Rang my insurers, Lloyds TSB, and have been told that I will have to totally cancel the policy and pay them £119 for the privaledge. My policy for the whole year only costs £262 and I pay this monthly (from the end May).

Does this seem right? I've never SORNed a vehicle before, planning to only do so for 6-12 months and I don't want to jeopardise my no claims as I have Full, Protected No Claims at present, have been told that if I re-insure within 2 years this should still be valid.

Any advice greatfully received.

321

vaio

The general rules on early cancellation is pro rata for time on cover plus and admin fee of up to £50

For a £260 policy started in may then you are about half way through so should expect to pay about £130 plus the admin fee but obviously less anything you have already paid.

If they are trying to charge significantly more than this then stick a formal complaint in.

thenudeone

If you had full NCD when taking the policy and haven't made a claim then most insurers will accept that proof for up to 2 years.

You don't have to cancel the policy just because you SORN it - after all, you probably still want cover for fire, theft, or other damage.

If you cancel an annual policy part way through, an insurer can charge an admin fee and deduct it from any refund due, depending on the terms and conditions. If the admin fee is more than any refund due, just don't bother.

dunstonh

been told that I will have to totally cancel the policy and pay them £119 for the privaledge. My policy for the whole year only costs £262 and I pay this monthly (from the end May).

The figure seems about right. You are almost half way so you should get around £130 back. Minus the cancellation charge (i dont know theirs but anything upto £50 is normal and acceptable).

Does this seem right?

Yes

3_kids_2_jobs_1_dog

thenudeone wrote: »

You don't have to cancel the policy just because you SORN it - after all, you probably still want cover for fire, theft, or other damage.

The woman I spoke to said I had to tell them as soon as I took the car off the road and cancel the policy, when I queried this and asked if I could just 'downgrade my policy' she said no if a car's SORNed you have to cancel the policy!

3_kids_2_jobs_1_dog

dunstonh wrote: »

The figure seems about right. You are almost half way so you should get around £130 back. Minus the cancellation charge (i dont know theirs but anything upto £50 is normal and acceptable).



Yes

That sounds fair but they wanted my to PAY them £120 on top of the payments I have already made!!

dibuzz

I don't know if it can still be done but I was without a car for 2 or 3 months about 16 years ago and was told by my insurance company that I could put it on hold until I got another car.

dunstonh

That sounds fair but they wanted my to PAY them £120 on top of the payments I have already made!!

That is probably because your monthly payments are not in sync with the period past. it wont be pro-rata daily but monthly. Also, if you had any addons to the insurance (such as breakdown cover, legal expenses, courtesy car etc), then these are often non-refundable. It is the insurance premium that is pro-rata. Not the addons. So, do you have any addons to the policy?

£262/12 = £21pm. So, lets say you owe them £21 on premium. Then add a cancellation charge of say £50. that brings you to £71. That would suggest you have some addons which you have to pay full year for.

You can ask them to break the £120 down for you if they havent already (i.e. how much is fee, unpaid premium and non-refundable addons)

escortg3

I have sorn cars, but still need/want them insured. What if a tree fell on it or it was vandalised or set on fire.

Never ever, have i been told that i need to even inform my insurers that my car is off the road.

3_kids_2_jobs_1_dog

escortg3 wrote: »

I have sorn cars, but still need/want them insured. What if a tree fell on it or it was vandalised or set on fire.

Never ever, have i been told that i need to even inform my insurers that my car is off the road.

My thoughts exactly. I think I might ring again and speak to someone else, the lady I spoke to didn't seem overly confident. Fingers crossed I get better news.

vaio

dunstonh wrote: »

That is probably because your monthly payments are not in sync with the period past. it wont be pro-rata daily but monthly. Also, if you had any addons to the insurance (such as breakdown cover, legal expenses, courtesy car etc), then these are often non-refundable. It is the insurance premium that is pro-rata. Not the addons. So, do you have any addons to the policy?......)

I'd be interested to see if a refusal to cancel & refund these "non-refundable" add-ons along with the main policy survived an FOS “treat the punter fairly” examination.