car insurance cancellation charge

rs65

Heavier wrote: »

only to be told that this is illegal as a vehicle cannot be insured twice by different companies. I have spoken to a work colleague who used to work in insurance who confirms this is true.

Did your colleague say what makes it illegal? It would be fraud if you both claimed in the event of a theft for example. Might confuse the MID too but ask him/her what makes it illegal.

Heavier

dunstonh wrote: »

The FSA do not handle consumer complaints and will just forward your letter on to Swinton.

Tell your husband to read the documentation next time. For all Swinton's faults, they do clearly state their cancellation terms.

My mistake I thought FSA handled all financial complaints I stand corrected on that one.

My husband accepts he should have read the small print and is willing to pay a cancellation fee, however our complaint is that it is so disproportionate to the initial insurance premium paid and is the same whether someones insurance cost £1000 or £100.

No my friend did not say how it was illegal, but she like Swinton said this.

We have emailed a complaint to Swinton but as yet have not had a response, so OH will be calling them tomorrow again.

It is not optional to have Car Insurance so how is it that insurance companies can treat their honest customers so unfairly

dunstonh

My husband accepts he should have read the small print and is willing to pay a cancellation fee, however our complaint is that it is so disproportionate to the initial insurance premium paid and is the same whether someones insurance cost £1000 or £100.

That is how the FSA likes fees to be. Everyone paying the same irrespective of the amounts involved and not having unfair cross subsidy. Indeed, from 2013, whole chunks of financial services will have to work that way with others expected to follow over time.

It is not optional to have Car Insurance so how is it that insurance companies can treat their honest customers so unfairly

I am struggling to see how it is unfair. They published their charges. Your husband bought based on the information published and they are charging in accordance with what they publish. What bit have they done wrong?

I do get the fact you feel the charge is high for a small premium but then your argument would mean that you want someone paying say £1000 a year to pay more than you for doing the same work. How is that fair?

slykatrinah

as mazzza says, i wouldn't cancel it

Heavier

Thank you for your comments dunstonh.

I only commented on this thread to share my experience with beurling and to illustrate how unfair,I feel, the whole insurance system is too.

I think a cancellation fee for admin purposes of £25 would be fair rather than, as I have said before the disproportionate amount they want.

I was hoping for some supporting comments or other peoples similar experiences but as that does not appear to be forthcoming I shall not bother commenting further on this subject.

kingstreet

I can see this cross-subsidy issue getting a lot more "air" on here in the next couple of years.

It was interesting this week to see the FSA suggesting they expect to see "free" advice continue into the new dawn... :eek:

Customers should pay for the advice they receive, but "pro-bono" should continue without subsidy from the paying client? How can those two ideas possibly co-exist?

_Andy_

beurling wrote: »

as usual it would seem that the insurance companies have us by the dogs danglies...


its about time somebody withh a bit of power got a handle on this industry and did a better job of keeping it in check

So you'd be ok with higher premiums for everyone then?

dunstonh

I think a cancellation fee for admin purposes of £25 would be fair rather than, as I have said before the disproportionate amount they want.

So, next time look for an insurer that has little or no admin charge (but higher premium that everyone pays). There is choice here.

I was hoping for some supporting comments or other peoples similar experiences but as that does not appear to be forthcoming I shall not bother commenting further on this subject.

Isnt it better to understand the reasons why rather than getting a bunch of unqualified know nothings all agreeing with you saying that the big bad insurers need their bottoms smacked?

mikey72

Just read this thread.

complaints should go to the FOS, who have decided in the past a limit of £50 is acceptable, so I advie anyone on here to complain to the insurers, then raise the complaint with the FOS.

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

dunstonh wrote: »

So, next time look for an insurer that has little or no admin charge (but higher premium that everyone pays). There is choice here.

Isnt it better to understand the reasons why rather than getting a bunch of unqualified know nothings all agreeing with you saying that the big bad insurers need their bottoms smacked?

Bit misleading, but as you well know, someone has to rein in the insurers when they try to rip off the customers yet again.

dunstonh

Bit misleading, but as you well know, someone has to rein in the insurers when they try to rip off the customers yet again.

Where is the rip off here?

Admiral have not exceeded the £50 charge.

They charge £17.50 for mid term adjustments (plus any premium increase where applic) and £47.50 for cancellation (outside cancellation rights) plus premium due for time on cover (or full amount if a claim has been made)