Is it worth complaining? New driver insurance

kayjoanne

I had a provisional license and insured my car with my dad as a named driver, and on the day i passed my test i rang my insurance company (RAC) to tell them. I fully expected my monthly payments to go up (they tripled)
I was told that i had to make a decision about it there and then and that if i wanted to cancel my policy that i would have to pay something like £250 cancelation fee plus another £35 administration fee which they would be debiting out of my account the next day. I actually told the woman " You have me by the short and curlies" and felt powerless to argue.
What i would like to know (I have not received any paperwork yet as this was last week) have i started a new policy and if so do i have a new cooling off period? Also, how are they allowed to tell me i have to make a decision about it there and then and not give me any time to think about it?

Any comments or advice would be greatly appreciated

Quentin

kayjoanne wrote: »

.... have i started a new policy and if so do i have a new cooling off period? Also, how are they allowed to tell me i have to make a decision about it there and then and not give me any time to think about it?....

You need to ask them whether they have started a new policy, or (more probably, and assuming your policy was in your name) just changed you from a provisional to a full license holder.

If the former, then you will have a cooling off period, not so if the latter, though you can still cancel and go elsewhere if that is cost effective.

You had to make a quick decision, as the alternative would be them cancelling your cover (as your change to a full licence meant your previous driver details no longer applied.)

forgotmyname

Unless it was explicitly a learner policy that ended when you passed your test, The new premium is a continuation of the original policy.

But teh new premium is now based on the higher risk that you can no go out unsupervised.

Its normal for the price to increase when you pass your test.

dunstonh

have i started a new policy and if so do i have a new cooling off period?

Doesnt sound like it as you would have paid the admin fee and unpaid premium.

Also, how are they allowed to tell me i have to make a decision about it there and then and not give me any time to think about it?

Because it is not a new policy and your circumstances have changed. The only choice is to accept the increase or cancel the policy. It is a factual change in circumstances and not something you can dither on. You either have a full licence or provisional.

kayjoanne

Thank you for your replies, its a bitter pill to swallow when i had a look at other quotes which would cost me £50 per month and i am now having to pay £150 per month because i couldnt afford the cancellation fees.
I now have the sinking feeling that the cancellation fee will be far greater with this new policy. Am i right?

Quentin

No, if it is a new policy, then you will be cancelling within the cooling off period, or if it's your old policy, the new premium only kicks in from the day you passed your test, not from the start date. So the cancellation fee should be around the one they quoted you.

But get them to confirm this before you make a decision.

If you do cancel, then you get no NCD for the part year you will have been covered.

mikey72

Any refund should be roughly pro rata + the £35 fee, so ask where any other charge comes from. If it's monthly payment it should be roughly up to date with what you have paid so far. http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

vaio

as you are paying monthly then the cancellation fees should be broadly pro rata for time on cover (so more or less in line with what you have already paid) plus an admin fee of up to £50

with that in mind it might still be worth cancelling and going elsewhere but remember that you won't get any NCB for the cancelled policy. You'll find it's worth leaving dad on the policy as a named driver too

Caz3121

kayjoanne wrote: »

i had a look at other quotes which would cost me £50 per month and i am now having to pay £150 per month because i couldnt afford the cancellation fees.

do share these companies, the norm for young new drivers on this forum seems to be around the £3k mark....are you saying you could have got insurance for £600 for a year?

kayjoanne

Caz3121 wrote: »

do share these companies, the norm for young new drivers on this forum seems to be around the £3k mark....are you saying you could have got insurance for £600 for a year?

I should say that although i am a new driver i am *cough* 39 and female, i expect this is why i managed to get such a low quote, i do feel for the younger drivers though. Sorry guys >.< no magic formula here.

ronekenn

its a bitter pill to swallow when i had a look at other quotes which would cost me £50 per month and i am now having to pay £150 per month because i couldnt afford the cancellation fees.

No need to swallow a bitter pill. It only depends on you that how much comfortable you are with the current insurance company. As it is obvious that you will not at all like to pay higher premium rates when others are paying less for the same thing. Its better to get rid of that company.