Car Insurance cancellation fee after death

crazymumof5

omg how awful of them ,when my mum died her insurers just cancelled the policy .Cant believe how insensitive and money grabbing they are being with you :0(

dacouch

My old boss would generally not apply any admin fees but would deduct his commission which was generally 10%.

As a lisyloo mentioned, he had done all the hard work / expensive parts at the start / renewal of the policy. He would have sympathy for the death of the policy holder but this was not his fault and would actually cause further work / costs for him.

He would say that the solicitor dealing with the estate and the funeral director would not work for nothing, so neither would he.

j2011

He would say that the solicitor dealing with the estate and the funeral director would not work for nothing, so neither would he.

But the solicitor and estate agent are not employed by the deceased.

Also there is now not any risk on the policy having to pay out.

dacouch

j2011 wrote: »

But the solicitor and estate agent are not employed by the deceased.

Also there is now not any risk on the policy having to pay out.

The broker does not pay claims, they receive an upfront commission for arranging the policy. If the policy is cancelled for whatever reason, they lose a proportion of their commission based on the cancellation return of premium.

They supply a service with the majority of the costs being arranging the cover or renewal

j2011

He would have sympathy for the death of the policy holder but this was not his fault and would actually cause further work / costs for him

What, he doesn't have insurance to cover him if his clients die?

Quentin

j2011 wrote: »

But the solicitor and estate agent are not employed by the deceased.

Also there is now not any risk on the policy having to pay out.

You are forgetting these are all business decisions, and not personal!

The solicitor and estate agent are nevertheless getting paid work as a result of the death of their client.

And all cancelled policies carry no risk of having a claim against them (save of course a late claim coming in from an incident prior to the policyholder expiring!).

But all policies that get cancelled mid term result in some expense for the policyholder, as set out in the agreed terms when the policy was taken out.

(Motor insurers often help out when a policyholder dies leaving a spouse who was previously a named driver by allowing the spouse to not only carry on the policy but to transfer the deceased's NCD to the spouse)