Insurance Cancellation charges

SiTheWalrus

I recently cancelled my car inusrance renewal within 14 days of the renewal start date, after finding insurance for 30% less elsewhere.
When I came to cancel, my insurer charged me what represented 13% of my yearly insurance charge, for less than 14 days use. I think this was made up of Insurance used + minimum charge + interest + an admin charge. As I was still up on the switch my protesting wasn't as fierce as it should have been, and I can understand some of the charges. However, I can't understand how this is entirely lawful given that I was within the cooling off period.
Can anybody help???

Quentin

Paying agreed charges (which will have been set out in the ts + cs) during the "cooling off period" is "entirely lawful".

But you say you "think" you know what the charges were for.

You should never pay bills without understanding what they are for, and even at this late stage you can ask them to itemise their charges, then dispute any that you see as wrongly being charged.

dunstonh

When I came to cancel, my insurer charged me what represented 13% of my yearly insurance charge

The FSA is in favour of explicit charges. Indeed, there is a whole load of changes coming in 2013 which forces whole sections of financial services to charge explicitly. Fixed fees are fair as everyone pays the same. In your case, it equates to 13% of the premium. However, for someone else it would equate to 1%. If you go with the percentage option, why should you pay less than someone with a larger premium for doing the same work?

However, I can't understand how this is entirely lawful given that I was within the cooling off period.

You are allowed to cancel during the cancellation period. However, you can be charged an administration fee and premium for the period you were on cover. It is an incorrect myth that you cannot be charged in that period.