Car Insurance Cancellation Charges

dunstonh

but I do wonder if they were worried about the implications for other policy holders if I had taken the matter further.

Probably not bothered as there would be no implications. However, it would cost them £500 if you went to FOS. That is why they roll over on small value complaints.

Archergirl

Can I just ask why you didn't just change the ins to your new car?

mikey72

west_one wrote: »

Thanks for the interest in my post - I wanted to provide a final update in case it helps others in a similar situation. I wrote to the company a couple of times and finally proposed to them that I would accept the cancellation charge, but not the charges relating to supposedly additional components. I made the point that the policy was sold as a package, so I did not believe it was justified to then claim that some charges were not refundable (even though it does say that in the small print of the policy docs). Anyway, the company took about a month to respond to my last letter, and then they said "due to the delay in replying we have agreed to waive any outstanding charges". So a good result for me, but I do wonder if they were worried about the implications for other policy holders if I had taken the matter further.

A good result, and you are probably right in that they are avoiding pushing the decision up to the FOS, as they would not like to establish any pre established solution when others still unfortunately pay up.

Spiderham

mikey72 wrote: »

A good result, and you are probably right in that they are avoiding pushing the decision up to the FOS, as they would not like to establish any pre established solution when others still unfortunately pay up.

I'd suggest that they are more likely trying to avoid the £500 charge than the idea of a precedent as even if they win the case any future cases would still attract the charge. Such is the joy of the FOS charging structure.

mikey72

Spiderham wrote: »

I'd suggest that they are more likely trying to avoid the £500 charge than the idea of a precedent as even if they win the case any future cases would still attract the charge. Such is the joy of the FOS charging structure.

If they won, they would be a lot less cases referred and even less passed through to adjudication. If they lost however, they would be assured of losing every time a customer referred to the previous case. We'll see one get there eventually.