Motorcycle Insurance cancelation charge

falklandhill78

Purchased motorcyle insurance on 29th October 2011 and paid the year's premium in full. Cheap insurance with Dialdirect through Zenith Insurance which only cost £69.38.
I sold my motorcycle yesterday and phoned today to cancel the insurance to be told that I now owe them more money ! I knew they have a £30 cancelation charge but the policy hasn't yet been running 6 months and I thought things would even out as I would get half the premium back as a refund.
I refused to give them card details to take payment so they say they will invoice me.
Happy days !

forgotmyname

Its OK as long as you dont need insurance in the future and dont mind debt collectors calling on you.

Otherwise you need to ask for a full breakdown of the charge and ask about any refund on the policy.

paddedjohn

call them back and tell them to reinstate the policy and let it run its course.
Tellthem you have changed your mind about selling the bike

lisyloo

call them back and tell them to reinstate the policy and let it run its course.

A vehicle cannot be insured twice, so if the new owner has it insured then it may well flag up.
Alternately if the new owner doesn't have it insured you could find a claim coming back on your insurance. This is because insurers do have some liability under the Road Traffic Act even if you weren't driving or the owner.

Ask for a breakdown.
You assumption that 6 months = half is probaby wrong.
So I'm afraid your dissapointment stems from an assumption rather than reading the contract.
When you get the breakdown present it here and you'll get some advice on whether it's correct.
If it's correct then you need to pay it even if you don't like it.
You agreed to it (by signing up) and it's legally due. If you don't you potentially face harrasement from debt collectors, a CCJ, ruined credit rating.
That's not any moral judgment or opinion, just the way it is.

Of course I would suggets you check it's correct first.

Quentin

lisyloo wrote: »

A vehicle cannot be insured twice.....

Where do you get that from?? (Not true)

The problem in paddedjohn's suggestion may be that they have already acted and cancelled the policy irrevocably, and "changing your mind" won't be possible.

vaio

yep, but insurable interest comes into it but more importantly is if the OP leaves the insurance running AND the new owner doesn't insure AND has an accident then the OP's insurance will be liable under RTA.

If that does happen then lots of policies allow the insurer to recover what they have to pay out from the policy holder who didn't cancel the policy when they should have.

lisyloo

Where do you get that from?? (Not true)

Carole Nash & IAM Surety (Adelaide) in regards to insuring my husbands bike for me to ride. We were told we cannot both insure the same bike.

Is there some subtlety here that distinguishes the two situations?

Quentin

Well......you assert that you "cannot" insure a vehicle twice.

So you buy a second hand car off a dealer, it is still insured by the original owner. You are saying you "cannot" get it insured. So how will you drive it away from the dealer then?

Not a particularly "subtle" scenario!

lisyloo

Well......you assert that you "cannot" insure a vehicle twice.

I meant that officially it's not a situation that should occur.
That doesn't mean you cannot acheive it.
Just like you aren't meant to steal or kill but you COULD.

We have also poitned out the downside of doing do - which is a fault claim on your record for which you aren't responsible.

You may of course be in breach of terms and conditions by not declaring material facts i.e. not being the owner.
That simply means you shouldn't not that you can't.

Quentin

lisyloo wrote: »

That simply means you shouldn't not that you can't.

So maybe you "should" advise what people "shouldn't" do, if you are in schoolmarm mode, not what "cannot" be done (when it "can"!)

forgotmyname

I would have agreed with the you cant insure a vehicle twice, But there are policies now that will allow just that.

My insurer wont cover learner drivers. But i can get a learner policy that will cover them on my car.

My insurer said they had no issues with this, The car would not be covered by them when the learner was driving.