Insurance penalty charges...just like the banks!

jamesh008

I recently got charged £30 to cancel a motorbike insurace policy which had less than a month to run and only cost £90 for the whole year anyway. I had to cancel to transfer my no claims discount to a new policy with a new provider.
This would seem to me to be another case of exorbitant penalty charges for altering one field in a database on a computer. Even if they have to print something and post it using an automated machine the actual time and cost can't exceed £5. Is there any basis in law for challenging this in the same way as unfair bank charges?

The same thing happened to my dad, similar charges apply for minor revisions are excess charges the new way to stripe us for getting low cost insurance?

brazilianwax

Why didn't you just wait for the policy to end before switching insurance??!

Astaroth

It is not a penalty charge

A penalty charge relates to a breach in contract, this is an up front agreed charge for performance of a service and therefore can be as much or little as they want as long as you were aware of it beforehand/ in your cooling off period and as I have never seen an insurance document where it isnt stated either in the policybook or important statements leaflet there is no issue other than you clearly didnt check them when you got them.

saintjanet

I have to agree with the above,there is another recent thread on here,on the same subject,that you may find interesting.

david29dpo

the problem is people these days want it cheap. they buy on price, not quality. we have all done it. we buy in insurance without even looking at the policy. the better and slightly more expensive companies dont charge these fees. you get what you pay for.