cancellation of lloyds car insurance

tberg300

having sold my car and not planning on buying a new one i called my insurer lloyds tsb to cancel. I was charged 288 quid for the pleasure.
phoned them back today as their due to take the money on the 23rd may to see if they had it right with the amount.
the policy was rolled over in december so had six months to run.
SHORT TERM rates apply thats all i kept getting told.
anybody know the best course of action or is there nothing i can do but add them to the hitlist?:mad::mad::mad:

InsideInsurance

Ask them to provide a written breakdown of the £288

tberg300

written details on the way but here are the verbal costs confirmed over the phone
£35 cancellation fee
£245.66 short term rates.
Boom

Faith177

short term rates (or time on risk) are a pain. Basically i think it works that you lose 10% of the premium per month (on average) until about month 9 or 10 when you will receive nothing back.

for example

1 month in - 90% refund
2nd month - 80%
3rd month - 70%
4th month - 60% ect

If it is detailed in your policy documentation then there isn't a lot you can do as this is a normal way of cancelling a policy

mikey72

Witer a letter of complaint, tell them you expect a pro rata refund, (less a cancellation fee of up to £50), if they refuse refer it to the FOS as per their previous rulings. http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm
edit - just becaue it's in the t&c's, doesn't mean it's fair or enforceable.

tberg300

ok thanks for that
i'm livid and not finished with this. sick of companys rinsing every last penny