RAC car insurance cancellation rip-off!

soos_2

16 days ago I insured our second car with the RAC. Last week they sent me a letter asking about my No Claims Discount.
Apparently, they won't accept NCD if we have it on an existing policy for another car and say the policy is either cancelled or pay £250 more.
Because we are 2 days over the 14 day cooling off period they will charge us £110 to cancel. And they will keep the £75 we've already paid them. £185 in their pockets for doing nothing!

Do we have any rights? Can we refuse to pay?

We've now insured the car with DIRECT LINE who take on NCD from an existing policy and they are cheaper than RAC.

Any advice would be appreciated.

mikey72

Ask for a breakdown of the charges, and if they seem unfair, complain in writing.

Point out the ruling made by the FOS previously

http://www.financial-ombudsman.org.u.../insurance.htm

InsideInsurance

I would be very surprised if DL will accept it once they find you are intending to use it on two cars at the same time unless they are the insurer of the other vehicle. Make absolutely sure before buying as they too will charge you a cancellation fee even in the cooling off period

soos_2

Thanks Mikey72. I saw your link in another post

soos_2

Direct line know we have insurance with Sheilas wheels and they're fine with it. I think Admiral accept it aswell.

dunstonh

Apparently, they won't accept NCD if we have it on an existing policy for another car

Which is of course normal with all insurers.

and say the policy is either cancelled or pay £250 more.

which is quite fair.

Because we are 2 days over the 14 day cooling off period they will charge us £110 to cancel. And they will keep the £75 we've already paid them. £185 in their pockets for doing nothing!

You obtained insurance on false information. So, they are charging you for the period on cover using short term rates (which you have received benefit from) and a cancellation charge. The cancellation charge with RAC outside of the cancellation period is £35. Well under the FOS figure given by mikey.

http://help.rac.co.uk/help/faqs_external/car_insurance/cancel-car-insurance-policy

No wrong doing here and no rip off. You just made a mistake and are paying for that mistake.

Badger_Lady

Some companies for new business will give you a discount equivalent to a NCD, to get you on their books. Check very carefully whether this is what's happening - I'd be very surprised if they'll actually apply duplicate NCD (as in one that you could build up and then transfer to a different insurer next year).

Of course an equivalent discount is better than none

soos_2

Ok! Maybe I'm a bit dim. We didn't give false information. Where does it say about not having NCD on 2 different policies??
They want to charge £35 cancellation fee plus 30% off the full amount and keep £75 first installment. To me, that's just being greedy.

dunstonh

Ok! Maybe I'm a bit dim. We didn't give false information. Where does it say about not having NCD on 2 different policies??

here is what the RAC about NCD next to the question it asks you about NCD (i highlighted the bit in red):

No Claims Discount
Every year you hold a policy in your own name without making a claim, you build up a no claims discount, which may save you money.
If you do not know your no claims discount (NCD), you should make a best guess, as this can always be changed before you purchase your policy.

Proof of No Claims Discount (NCD) may be required.

N.B. The NCD being used for this policy must be in the main drivers name. NCD can only be used on one policy at any one time. The expiry date or renewal date must not be more than 24 months before the commencement of cover for the vehicle with us. NCD must be no older than 24 months old. We accept a maximum of 5 years NCD from company car policies as long as you had sole use of the company car

---

So, have you or have you not given false information? (may have been accidental but the point is, did you give them correct information or not)

They want to charge £35 cancellation fee plus 30% off the full amount and keep £75 first installment. To me, that's just being greedy.

Their terms say £35 plus short term rates for time on cover.

soos_2

OK! I hold my hands up. Didn't look properly. I agree if we cancel there should be a charge but losing £185 is a kick in the teeth!

dunstonh

soos wrote: »

OK! I hold my hands up. Didn't look properly. I agree if we cancel there should be a charge but losing £185 is a kick in the teeth!

It may be cheaper not to cancel. Remember that quotes elsewhere are going to be higher once you declare them with no NCD built up.

When Direct Line ask you for proof of no claims and find out its on another vehicle that you still own then are you going to suffer the same problem there. it may be better to deal with direct line whilst you are still inside the 14 day cancellation period.