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Fee for 'Cancellation' of home insurance upon expiry
Whatever1000
Posts: 2 Newbie
Hi
I currently have home insurance with Direct Line and I was looking for quotes for next year. However, I see there is a £25 cancellation fee. I would like some advice on whether this is actually correct. Surely, you can not charged 'cancellation' upon expiry of a policy - since the policy is by its nature for a definite term? It is the insurance company automatically renewing it, not me. I did not request renewal, but noted the fee for 'cancellation'. On a side note, I also note Virgin are charging a 'cancellation fee' of their braodband contracts despite the fact the initial period of the contract has expired and the correct notice given. I don't think this is in-keeping with distance selling legislation in regards to credit cards etc.
Any advice appreciated
I currently have home insurance with Direct Line and I was looking for quotes for next year. However, I see there is a £25 cancellation fee. I would like some advice on whether this is actually correct. Surely, you can not charged 'cancellation' upon expiry of a policy - since the policy is by its nature for a definite term? It is the insurance company automatically renewing it, not me. I did not request renewal, but noted the fee for 'cancellation'. On a side note, I also note Virgin are charging a 'cancellation fee' of their braodband contracts despite the fact the initial period of the contract has expired and the correct notice given. I don't think this is in-keeping with distance selling legislation in regards to credit cards etc.
Any advice appreciated
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Comments
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You dont cancel it at expiry, you allow it to lapse and there is no "lapse" fee.
If you allow it to renew and then try to cancel the new policy then there would be a cancellation fee0 -
Insurance is usually a 12 month contract. After this you can change if you want - there would be no fee if you decide not to take the policy for a futher 12 months.
Check that the policy is not set up to renew automatically - if so you need to tell the company to lapse the policy. It's not enough just to cancel direct debits.
You would usually incur a cancellation fee if you decide to switch mid-term - ie you renewal is in January and you change insurers in August.0 -
InsideInsurance wrote: »You dont cancel it at expiry, you allow it to lapse and there is no "lapse" fee.
If you allow it to renew and then try to cancel the new policy then there would be a cancellation fee
If your are looking to let it lapse, please make sure you have not previously agreed to them auto renewing your insurance.If my posts have random wrong words, please blame the damn autocorrect not me
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I kind of have to.... its what they pay me to do and my family like eating occasionally.0
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InsideInsurance wrote: »I kind of have to.... its what they pay me to do and my family like eating occasionally.
You could try chicken occasionally rather than caviar and champagne.
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I'd rather chicken than caviar any day of the week.... not convinced that chicken would make a good substitute for champagne though0
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