car insurance cancellation charge

mikey72

I've not seen the op state the breakdown you appear to have that from. I agree they have been asked to pay more than that though. But it's a good reference to start the complaint from for them.

soos_2

Just posted a thread about similar problem. Thank you Mikey72 for link. Might be useful for our fight with RAC.
I understand there should be a charge for cancelling but for them to take £185 is outrageous!

dunstonh

I've not seen the op state the breakdown you appear to have that from.

I used Admiral's published terms for cancellation. The OP has given a total and assumed its a fee but its obviously not. It will likely be fee plus premium.

Just posted a thread about similar problem. Thank you Mikey72 for link. Might be useful for our fight with RAC.
I understand there should be a charge for cancelling but for them to take £185 is outrageous!

As mentioned on your other thread, the RAC charge £35 which is under the £50 mentioned by Mikey. So, the information isnt useful to you other than it verified that RAC are not charging you more than they should.

mikey72

In the absence of any breakdown of over charges, we can assume the cancellation fee may be correct, so ensure the pro rata refund is applied, and don't let them waffle on about short term rates in that case.
So thanks to dunstonh again for finding the figures to check on, and what to look for the excessive charges on.

rob_b_2000

we too have had this issue recently in connection with a property insurance cancellation. Whilst I have no problem with the £50 cancellation fee, its in the T&C, what I did have issue with was them keeping us ''on cover'' and paying for the priviledge despite the fact that we had cancelled, until we proved to them we had an alternative insurer. Remember this is property not motor before Dunston jumps on me - not a legal requirement ! Who are they to DEMAND i give them my alternative insurer.

I went in this morning and requested under what legislation they have the right to know who I have switched too and on what basis they can keep me ''on cover'' and charge for it.

The local manager said as a ''matter of goodwill''...how gracious, he will drop the 'on cover' aspect and just charge the cancellation fee.....when he had stopped squirming I sarcastically praised him for the parasitic rip off attitude this company uses.

My advice....dont let them railroad you, we had the final demand notice etc and my partner was very very upset. Clearly Swinton are suffering at the hands of the on line brokers and are looking at other revenue sources to make up losses.

As an aside they have lost 5 family re-newals on motor due to this. Well done Swinton !!

dacouch

rob_b_2000 wrote: »

we too have had this issue recently in connection with a property insurance cancellation. Whilst I have no problem with the £50 cancellation fee, its in the T&C, what I did have issue with was them keeping us ''on cover'' and paying for the priviledge despite the fact that we had cancelled, until we proved to them we had an alternative insurer. Remember this is property not motor before Dunston jumps on me - not a legal requirement ! Who are they to DEMAND i give them my alternative insurer.

I went in this morning and requested under what legislation they have the right to know who I have switched too and on what basis they can keep me ''on cover'' and charge for it.

The local manager said as a ''matter of goodwill''...how gracious, he will drop the 'on cover' aspect and just charge the cancellation fee.....when he had stopped squirming I sarcastically praised him for the parasitic rip off attitude this company uses.

My advice....dont let them railroad you, we had the final demand notice etc and my partner was very very upset. Clearly Swinton are suffering at the hands of the on line brokers and are looking at other revenue sources to make up losses.

As an aside they have lost 5 family re-newals on motor due to this. Well done Swinton !!

I'm guessing that they auto renewed their cover whilst you had gone to another Insurer.

Requesting sight of the alternative insurance is common in the above situation so that they can show the Insurer Swinton use that they would not be liable for claims. Thus the cancellation is back dated to whenever you took your alternative cover which avoids you paying for cover in addition to the cancellation charge.

Try putting in a written "official complaint" letter (By recorded delivery) to Swintons as they often drop the £50 charge when an official complaint is made

rob_b_2000

Thanks dacouch, I may well do that and see what response I get.

sujman

Car insurance ends 25.12.2011. Sold car few days a ago. Called LV to cancel insurance. Not expecting any refunds, just out of courtesy.

Told I had to pay £35 cancellation fee. I was like, you what???? Forget that, I keep the insurance then, only a month left anyway, no skin off my nose not like I am getting anything back.

Oh no she says, you've sold the car, so you dont have the car, so you must cancel the insurance. I said what does it matter to me, I ain't paying no £35 fee.

She was like if you don't cancel and the new owner doesn't insure properly, then LV become liable because there is some insurance on the car.

So I was like, hang on, you have a liability if I dont cancel, so in order to protect you, I cancel but then I pay - still dont make sense to me!

Yes sir but there may be some consequences for you. what consequences I ask? DVLA know the date of transfer, whatever incident may occur will have nothing to do with me (as I wont be there) so no police will be breaking down my door. Explain to me again why I have to pay £35?

(Here's the best bit). Well, its in our T&C's....

Don't care, I not paying £35! Only way to do that sir is not to cancel but as I have explained before there may be consequences....

I'll take my chances, forget I called...bye!!

So, what possible consequences could there be and are they real?

System

LV should cancel the policy anyway, because you no longer have an insurable interest in the car.

This may result in a cancellation on your permanent insurance record (Not sure, you will need to check on the CUE database)

If LV do not cancel, and the next owner of your old car causes damage whilst uninsured, then LV would have to pay (possibly £100,000s) and they could sue you for their money. Still think it is worth the risk ?

mikey72

BAA1 wrote: »

LV should cancel the policy anyway, because you no longer have an insurable interest in the car.

This may result in a cancellation on your permanent insurance record (Not sure, you will need to check on the CUE database)

If LV do not cancel, and the next owner of your old car causes damage whilst uninsured, then LV would have to pay (possibly £100,000s) and they could sue you for their money. Still think it is worth the risk ?

We had this discussion last night.

If I lend my car anyone else while I own it, I agree then, LV can sue me, and that seems what the law is aimed at, but not after I sell it.
If it's not my car any more, and I am no longer responsible, I can't "cause or permit", anyone to drive it. Only the current owner can do that.
So LV may have to pay, but I can't see how they could have a case against me.

(And as so many insurance letters appear to go missing in the post, I'm sure we all have a letter on file cancelling it anyway, even if it never got there.)