Admiral Car Insurance Help Please?

absolutelynomoney

Hi there,

I am with Admiral Car Insurance and would like to cancel my policy with them and change providers, for various reasons.

However, after speaking with them, I've discovered that they want to charge me approx. £200 on top of the £47.50 admin fee! When I asked them what it was for, they informed me that they charge cancellation at "pro rata" of the number of days you have had the policy for, which for me comes to £200 - this seems excessive to me and especially so when I have been paying my insurance by direct debit monthly, so surely I have already paid for their services?!

I don't understand what this extra pro rata fee is for and when I tried to talk them through why I had such a problem with it, they told me "We're not charging you anything extra" !

Has anyone else come across this before and is there anything I can do? I can understand the administration fee, but cannot fathom why I should be required to pay an extra fee for each day that I have had the policy. :mad:

McKneff

Why not just let it run to the end of the policy and then just not renew it, it would probably be cheaper.

Various reasons ???

dacouch

Pro Rata is normally the car insurance premium excluding any add on's such as breakdown, legal etc etc divided by 365 and then multiplied by the amount of days you have been on cover since the policy started.

Admiral tend not to refund any of the premium for the add ons.

Ask them for a break down in writing

Sally_A

Depending on your annual premium amount, the £200 may be the shortfall of the direct debit up to cancellation date or you may be penalised for cancelling within the first year of insurance.

Unless you can give us some annual figures, and dates of inception to cancellation, along with your DDM amounts it's hard to comment on whether they are being fair or not.

Faith177

When you pay by direct debit it is actually a loan for the total cost of the insurance so for example if your premium is £1000 they will pay this for you your dd then pays it back based on the fact you will have the insurance for 12 months plus any interest they charge.

Pro rate is basically how they work out the daily rate for your insurance.

Example 1000/365 = £2.74 per day

They then times this £2.74 by how many days you have had on cover. Again example you have had the insurance for 180 days your insurance bill will be £493.15

Now if the amount of direct debits you have paid up to that point does not cover the full amount you will need to pay the additional plus your canc fee and this is what has happened with your insurance company.

You haven't paid enough on your direct debit to cover what insurance you have had