Should I cancel my car insurance?

GoldenSwan

Hi All,

I am very confused, so any opinions or advice welcome.


I took out my car insurance at the beginning of June, after following Martin's advice on how to get the best quote. The online link of the company I chose, insisted all policies had to be dealt with over the phone to ensure they had correct details. A few details made the price go up, wasn't happy as the website didn't seem to give the customer service guy the info I had put in. Wasn't impressed with the price but felt under pressure (from both the customer service guy and stuff going on in my own life)to take policy anyway. After spending hours on it I just wanted it to be sorted and I paid in full over the phone.

Finally this week (yes over 5 weeks later) the paperwork has come through for me to sign and I realise its 3rd party, fire and theft. It's expensive imo for fully comp let alone 3rd party. I have just done another quote search and the cheapest one fully comp could save me almost £300!

I feel I should cancel my policy and take out another cheaper but with better cover policy. However I am aware that I will be charged a cancellation fee. Does anyone know if there is a formula to figuring out a rough fee cost? And I have dealt with enough companies to be reluctant to believe that this will work, as simply as them saying you owe us £x and refunding the remainder? Or going for the FC cheaper policy and it ending up being more than the price on the search engine.

Cursing myself that I paid in full, it is the first time ever. I thought I was being money saving but now feel locked into an expensive inadequate policy, just because I don't believe that a cancellation will go smoothly.

Can anyone give me any guidance on how to proceed? Any best tips for cancelling a policy?

Will this 5 week policy affect my no claims? ie part of this paperwork is to provide my NCB firm the policy that expired at the end of June.

Thanks for reading and thanks in advance for any replies.

dacouch

Which company is it

GoldenSwan

RCIB

Some paperwork also states Groupama.

dacouch

Lol thought it would be them or Broker King.

Google RCIB complaint or do a search of MSE forums for RCIB, they do this all the time.

Which comparison site did you use, what information are they saying was different?

GoldenSwan

Oh really! Thanks for that. I will have a search and see what I can find.

Can't remember which site it was as I searched on the 4 main ones as well as doing the companies that aren't on the comparison sites. Will it make a difference to the outcome to know which site?

(Making a note to avoid broker king)

GoldenSwan

The alarm was one detail they said I hadn't put in right and a couple of others, can't really remember but will add if it comes back to me.

dacouch

Have a read of this link from the FSA who regulate RCIB.

http://www.fsa.gov.uk/pages/consumerinformation/product_news/insurance/price_comparison/index.shtml

"Key issues
Some of the issues we have highlighted to firms include:

making it clear that responsibility for checking customer eligibility or that the relevant information has been disclosed lies with the firms rather than the customer;"

and the more recent

"All firms in our sample stated they rely on the insurer or intermediary selling the policy to check the
customer’s personal risks are disclosed and it is often not clear what if any checks take place on
customer eligibility. It was our view that too much onus is being put on the customer to do this.
Firms (including all arrangers and advisers) are reminded of their obligations:
· under Principle 6 and ICOBS 5.1.1G to:
“(1)…take reasonable steps to ensure that a customer only buys a policy under which
he is eligible to claim benefits.
(2) If, at any time while arranging a policy, a firm finds that parts of the cover apply,
but others do not, it should inform the customer so he can take an informed decision
on whether to buy the policy”;

Requiring customers to take entire responsibility for checking eligibility or disclosure themselves
instead of the firm potentially excludes or restricts the duties owed to the customer identified above
which arise as a matter of treating the customer fairly. An exclusion of a regulatory duty is a breach
of ICOBS 2.5.1R which provides that firms must not seek to exclude or restrict a duty under the
regulatory system.

http://www.fsa.gov.uk/pubs/guidance/fg11_17.pdf

These in effect place the onus on RCIB (and the comparison site) for the information you supply to the comparison site to be transferred to RCIB correctly. So RCIB can't blame it on the comparison site.

Refer them to the above and mention you will refer them to the FSA if it's not sorted out. If they try and blag you, send them a letter titled "Official Complaint" send a cc to the FSA, RCIB have to investigate your complaint properly and report back to you.

and don't be afraid to through rule 5 of the Consumer Protection from Unfair Trading Practices

5. Special offer – not in stock
Making an invitation to purchase products at a specified
price, without disclosing the existence of any reasonable
grounds the trader may have for believing that he/she
will not be able to offer for supply or to procure another
trader to supply, those products or equivalent products
at that price for a period that is, and in quantities that are,
reasonable having regard to the product, the scale
of advertising of the product and the price offered.
This is known as bait advertising.

http://www.oft.gov.uk/shared_oft/business_leaflets/cpregs/oft979.pdf

GoldenSwan

Thanks for all that dacouch.
I've just read some threads on MSE about RCIB and it's fair to say the description of the phone calls rings true.

I have also read your last post and I am clearly tired as it didn't make a lot of sense to me. So I am going to get some sleep and start to deal with it tomorrow. No doubt I will be back for more advice.

Octagon are my best quote, are they safe/fair/reasonable?

Thanks again for your help, it is appreciated.

forgotmyname

5 weeks into the policy could be expensive to cancel.

<ake sure you ask the question 1st and get all the costs.

It maybe cheaper to stay for the year and move next time around.

GoldenSwan

Hi again,

I just contacted rcib, and they state they will charge me 55% of the total policy cost plus a £45 cancellation fee.:mad: Does this seem standard or are they fleecing me? Any suggestions on what I should do next?

I was so gobsmacked by the 55% I didnt ask about their complaints procedure.

If it makes any difference to your advice the figures are as follows.

Initial policy: £730 for 3rd party fire and theft.
Will charge £446.50 refunding me £283.50

New policy with "more than" £650 approx. But would be fully comp.
Can I afford it, not really, but doable. Definitely can't afford to buy a new car should anything happen to mine. I think I will have unease the whole year with this policy. Yet again I feel under huge pressure to sort this asap due to other things going on in life.:eek:
Should I just cancel it and put it down as an expensive life lesson.

Again thanks in advance for your advice.

Golden Swan.

GoldenSwan

:oPs Not sure I have it in to me to do battle with fsa etc. I am not familiar with all the regs and how to fight this potential battle. And haven't got the time to gen up on it enough to feel confident.

Any stocks phrases that will do the job? Serious hand holding needed.:o