Car insurance cancellation - do I have to pay them?

Momosmum

I have scrapped a car and now planning to buy another. I need to use the NCD (full) from the insurance on the old one, but when I called to cancel the policy they told me that as there was only 2 months to run, the refund would be around £20 as as there is a £50 cancellation fee, I would have to pay them £30.............to cancel a policy.............? I have read the small print, and I accept that I will not get anything back. Time has now passed a bit more and as it is now the last month, there will be no refund, does that mean I have to pay them £50? for ending the policy a month early?

The Ts and Cs refer to the cancellation fee being deducted from a refund, but I would expect this to be to bring it is zero, not that I would pay them.

I have left the policy running, anyone have any thoughts on what to do/who to raise this with as an unreasonable term?

Thanks

McKneff

If the car is scrapped just leave it running. If you get your new car befoe it runs out then transfer it to your new car.

dunstonh

the refund would be around £20 as as there is a £50 cancellation fee, I would have to pay them £30.............to cancel a policy.............?

Sounds about right. £50 is at the top end of cancellation/admin fees but within acceptable tolerance.

I have read the small print, and I accept that I will not get anything back. Time has now passed a bit more and as it is now the last month, there will be no refund, does that mean I have to pay them £50? for ending the policy a month early?

You wont have to pay it as you didnt cancel.

what to do/who to raise this with as an unreasonable term?

it is not an unreasonable term and the FOS publications have shown that they have rejected complaints of it being unreasonable up to £50.

Easiest thing to do is keep it running to the end or use it for the new vehicle if you get it before it expires (so you can continue the NCD)

keith1950

Hi-this seems to becoming the norm with a lot of insurance companies so if the charges are in the terms and conditions I would just pay up because you could cause yourself a lot of grief for the sake of £30.

This usually happens because customers dont read the terms and conditions when signing up.

If the new company push for your NCD paperwork before you get it they could end up increasing your premium.

System

Make sure that the old policy does not have AUTO RENEWAL.

If it does, when you get the renewal documents, contact them using the contact method described on the renewal documents to inform them of your intentions.

i.e.
Either tell them you do not want to renew the policy and hence you want it to lapse at the end of the cover period (No cancellation charges)
or get a renewal quote for the new car to check if transferring the policy to your new car would be a good deal.

Quentin

Bear in mind that although leaving the policy running till it ends will save you the cancellation fees, you won't be able to use the NCD to buy a new policy until this old one runs out, and any new policy you take out before your current policy ends would have nil NCD to use.

retiredalso

you won't be able to use the NCD to buy a new policy until this old one runs out, and any new policy you take out before your current policy ends would have nil NCD to us

That is not what happened to me. I bought a new car in March and insured it with another company as my then present company wanted a fortune to insure my new car and £50 to cancel the old car insurance which still had 6 months to run.

I just left it running and got my NCD with my new company.

Quentin

retiredalso wrote: »

That is not what happened to me. I bought a new car in March and insured it with another company as my then present company wanted a fortune to insure my new car and £50 to cancel the old car insurance which still had 6 months to run.

I just left it running and got my NCD with my new company.

Interesting - (seriously!!)

It will help us all if you could post how you managed to get the proof of NCD when the policy was still running.

(As it looks like you had one lot of NCD which you managed to use on 2 different policies.)

retiredalso

It will help us all if you could post how you managed to get the proof of NCD when the policy was still running.

No idea, I think my present insurer just took my word for it or else they have some way of finding out.

Do insurance companies not talk to each other?

As long as they only wanted £130 for a years insurance on a 2011 Hyundi i10 I wasn't bothered.

And I have checked that I am properly insured.

Quentin

It looks like you haven't had to give any NCD proof then???

retiredalso

It looks like you haven't had to give any NCD proof then???

I assumed they contacted my old insurer.

I'm not bothered anyway, as long as my car is insured that is all that concerns me.