car insurance cancellation charge

mikey72

vaio wrote: »

"if the registered keeper or owner of your car changes"

from csis policy page 46

http://www.csis.co.uk/_assets/files/PFS01009DPolicy%20Wording.pdf

We may re-assess your cover and premium as a result of any important information you give us.
If you do not tell us anything which is relevant:

• your policy may not be valid; and
• we may reject your claim.

I could live with that. No dire consequences in the t&c's there though.

unlike this clause

K. Driving under the influence of drink or drugs

We do not cover any loss of or damage to your car, if, as the result of the incident, you or anyone insured under the policy is convicted of driving whilst under the influence of alcohol or drugs.
Our liability will be limited to the cover required under the Road Traffic Act and we will reserve the right to recover any amounts we are required to pay.

System

Okay I accept that the insurer may not have a strong case to claim damages after you sell the car since you have not given permission for anyone to drive it.

But, all insurance policies have a clause which covers your duty of disclosure for all material facts / changes, hence, there is no need for a specific clause which states you must cancel or inform the insurer when you sell the car.

An insurance policy is part of a contract, as others have said, if the insurer broke the terms of the contract you, the policy holder, would be complaining and wanting some form of redress. It is only fair that the reverse is also true, and the insurer is well within their rights to expect the policy holder to abide by the terms of the contract.

This OP (sujman) has already informed the insurer that they have sold the car and hence have no insurable interest and hence by default the policy is cancelled. Hence, as per the terms of the policy contract, a cancellation charge is payable. If this OP (sujman) does not pay, I would expect the insurer to send in the debt collectors and this OP (sujman) ends up with a mark on their credit record.

If you want a policy that allows early termination without a cancellation fee, then find a suitable policy and pay the higher premium that those types of policy demand (they do exist), but if you want the cheaper policies, then you must be prepared to accept the consequences of a lower premium, which include additional costs like cancellation charges.

Plus, this OP's (sujman) attitude where they just stick two fingers up at the insurer and expect to get away with it, IMO stinks

mikey72

We have gone a bit off topic a little bit here, and I have to admit I'm the first to cry foul if the t&c's seem unfair.

But I still don't think there is a t&c to cover this.

I agree with the insurers right to pursue costs if you own the car, and lend it to a friend you know isn't insured, or hasn't got a licence etc. As the owner, you have a responsibility.
But if they want to charge a fee, and give a low refund when you cancel, which is effectively protecting their interests, I can see a conflict of interest for the customer. If I could check the new owner was insured, I would, but I don't think I should be responsible for ensuring my old company has no liability, and paying further for it.
Maybe they should not try to make a profit on this, and encourage, rather than discourage customers.

To reverse your arguement, if the insurer wants a customer that buys the cheapest policy, they know what profile their customer is, so they need to factor in the cost when the customer finds ways to avoid the fees.

Again though, whether MIB pays, or an specific insurer in a few cases, it will be the same overall amount off their bottom line, so I doubt it makes much effect either way.

System

mikey72 wrote: »

....

To reverse your arguement, if the insurer wants a customer that buys the cheapest policy, they know what profile their customer is, so they need to factor in the cost when the customer finds ways to avoid the fees.

......

I'm not sure you followed my post from the other parts of your response which I have not duplicated here, but what the hey !

However, for the bit I have copied above ... for the sake of sanity, you cannot be serious. What do you have against the insurance industry, insurers cannot do right for doing wrong.....I give up :(

sujman

BAA1 wrote: »

insurers cannot do right for doing wrong.....I give up :(

So you think my attitude stinks and that insurance companies can't do right for doing wrong?

So let me get this straight - According to the person I spoke to when I called to cancel, the only reason the insurance company were interested was so that THEY are protected in case the new insurer does not insure properly.

So to protect THEM, " I " have to pay £35???? Err hellooooo?????

I pay to protect them?

Too right I stick two fingers up!!

If T&C's were the be all and end all, then banks wouldn't be setting aside billions and billions of pounds to refund customer for past charges.


PS Yes, the insurance co know I have sold the car. But when I said I'm not paying the £35, they said they won't cancel the policy. I said whatever, all I'm interested in is that I don't pay iny fees. I've told you want I need to tell you.

So I wonder if the policy can be considered cancelled as far as I an concerned. If the insurnace co decide not to act apon that information and not cancel the policy and not send any fees, its their problem, right?

System

Will you keep us informed if / when you receive a letter from the insurance company asking for the cancellation fee ? You know, that fee that you agreed to when you took out the policy since it was in the T&Cs

mikey72

BAA1 wrote: »

However, for the bit I have copied above ... for the sake of sanity, you cannot be serious. What do you have against the insurance industry, insurers cannot do right for doing wrong.....I give up :(

I am serious.
They can pitch to whatever customer they wish to attract, and accept equally while they claim that the cheapest product means poor customer service, and excessive add-ons, it means they will attract the more "cost conscious" customers as well.

Insurers have gone from portraying themselves as the good old pin striped bowler hatted gents of the city, who you paid a fair price to, and importantly, they paid a fair price back, to a frenzied mob of salesman in slightly shiny suits clamouring in a heap all shouting "buy me, I'm the cheapest", then pleading poverty, and hiding behind contracts that are badly written, and unenforceable, when you try to make a claim.
So, either they can behave respectably, and be treated as such, or they can employ all the tactics 1980's double glazing firms did, and again be treated accordingly.
(Buy ten months, get two months free, all they need is a soapstar shouting it next)

On the topic, Admiral are a company I've used before, and would again.
In this case though, if the policy is indeed fully paid, I would expect a pro rata refund, less £50 or so as laid out by the FOS.
Not a £35 charge with no refund.
I have to be honest, and admit if the refund due was less than £50, I'd be less than keen to pay extra, to take me off risk with them.

I've started a few threads praising insurers here as well, and naming them for good service.
I've changed cars for pro rata premium only, I've added drivers mid term on the same basis, I've amended my personal details on all 5 of our car insurances mid term this year, and been charged nothing on any of them, even though they all had to issue new policies.
I don't think I've actually started any threads slating anyone for bad service.
But it does appear to happen to other people.
Maybe the fact they can do it for me, and can't for other makes it seen unfair.
(I used to get fair prices on good double glazing as well though)

gehngus_2

I just canceled with Premier whom i found on the compare site. it stated a cancellation fee of £33.

The problem is that it was then passed onto my nearest Swindon Branch who want paying £50 on top of this to cancel so now a total of £83.
i didnt want to pay it as the total for the year was only £120.

I was told if i did not pay, I would not get my 11 years no claims back. because i would have been made aware of it in the initial 1 hour sales chat?

I they said they were going to shoot me in advance it doesn't mean its ok? so why is it ok to rob me?

i had no choice but to pay the extra £50 admin fee. but im sure £50 for pushing a button is as bad as a bank charge, is there a letter or form to fill in like the one for the banks to get it back?

many thanks

dunstonh

but im sure £50 for pushing a button is as bad as a bank charge

its not.

is there a letter or form to fill in like the one for the banks to get it back?

no. Also the banks won the court case and people dont get charges back anymore apart from on hardship and first time errors.

You can complain if you wish and they may waive it just to get rid of you. However, the charge is published and is considered fair.