Insurance broker's cancellation charges

CaroleBM

My home contents insurance policy is shortly due for renewal. I am considering not continuing with the insurance, but note that the brokers charge a £50 fee for cancellation of a policy. Does non-renewal of a policy constitute cancellation for the purposes of levying such a fee? Any advice gratefully received.

Faith177

Hi

Just advise the broker you wish to lapse the policy from renewal there shouldn't be any problems :T

dunstonh

not renewing is not the same as cancelling.

Cancellation is something you do in-between renewal.

Cluaranone

Just renewed our annual home insurance & found out that previous insurers can renew our policy without our consent? Its on the small print and fortunately our card had expired and bank didn't honour their request. It costs £35 to cancel if not done a few days before policy ends. Same insurers were £135 cheaper this year on Compare the Market than the quote they sent in.

Buzby

The time to spot this is when the policy is taken out. Direct Line tried to impose this on me a few months ago, but I wrote revoking any implied mandate to do so, and for good measure, opting out of marketing and third party communications.

Cluaranone

So no longer is an yearly insurance just that? They have the right to present another year with huge increases and no claims made?
The onus seems to be on the purchaser to cancel, or incur charges if looking for a better quote.

Quentin

You will have agreed to "automatic renewal" when you took out the policy.

The onus is on you to inform them if you don't want to subsequently allow automatic renewal.

dunstonh

The onus seems to be on the purchaser to cancel, or incur charges if looking for a better quote.

If you have an automatic renewing policy then yes. If you have a yearly standalone policy that invites renewal then no.

The letter sent at renewal gives clear instructions on what to do next. So, if it says phone them to say you dont want it then phone them.

Cluaranone

dunstonh wrote: »

If you have an automatic renewing policy then yes. If you have a yearly standalone policy that invites renewal then no.

The letter sent at renewal gives clear instructions on what to do next. So, if it says phone them to say you dont want it then phone them.

Never received any letter. They phoned 2 weeks before new insurance was due (luckily I could quote back to them the time and date) and once after when again they were told me were renewing through the comparison site.
Moral of my story is they cancelled as they were in the wrong to try and claim another year when only 12months was originally requested.:T

dunstonh

Moral of my story is they cancelled as they were in the wrong to try and claim another year when only 12months was originally requested

More likely that it is cheaper to not argue the point.