RAC Cancelling Car Insurance Charges/Change of Address Fee

vishnu315

Hello Everyone,

I am 24 years old and have taken car insurance with RAC on my dad's name including my name as an additional driver. I moved home and notified changes to RAC expecting that they will be some admin fee and chances of reduction in the total premium cost as I now park in a secured car park. I had a big shock to know that the monthly premium has gone up by £120 making it to £250 every month because of high risk area and young driver factors. I searched online for help on this and also looked for new quotes which were lower than I use to pay before changing the address so I called RAC and tried to cancel the contract with them and take a new policy and to my shock they asked me to pay remaining 8 months premium (£800) for cancelling the contract in the mid term. Eventhough they laid these terms in the contract, I am really unsure if all the companies have same policy or Is there anything else I am missing?

Thanks in advance for your valuable suggesstion.

learningaboutinsurance

vishnu315 wrote: »

Hello Everyone,

I am 24 years old and have taken car insurance with RAC on my dad's name including my name as an additional driver. I moved home and notified changes to RAC expecting that they will be some admin fee and chances of reduction in the total premium cost as I now park in a secured car park. I had a big shock to know that the monthly premium has gone up by £120 making it to £250 every month because of high risk area and young driver factors. I searched online for help on this and also looked for new quotes which were lower than I use to pay before changing the address so I called RAC and tried to cancel the contract with them and take a new policy and to my shock they asked me to pay remaining 8 months premium (£800) for cancelling the contract in the mid term. Eventhough they laid these terms in the contract, I am really unsure if all the companies have same policy or Is there anything else I am missing?

Thanks in advance for your valuable suggesstion.

Yes pretty much all insurers do this if your paying by DD each month.

you made a commitment for the whole year in which you kinda took a loan for that years premimums so you have to pay a set amount depending on how many months left until renewel + admin and cancellation charges