Cancelling new insurance policy within 14 days - Monthly Pro-Rata?

AdamHarvey

Hi there,

I took out a new car insurance policy and decided to pay monthly but now I'm thinking of going with another company

The insurers state "If you contact us on or before the 14th day of receipt of your policy documents and the cancellation date is within this period, you will be entitled to a pro rata refund of the premium paid"

I've had the policy set up for around 9 days now so 5 days left to cancel (I presume the weekend counts)

Am I right in thinking because I have used most of the 14 day "cooling period" that I'm unlikely to get much of the deposit back? (£420)

Thanks in advance

vaio

depends on the policy cost, as they say pro rata if you cancel within 14 days then the most you should pay is about 4% of the full annual premium.

£1000 annual premium....you pay £40 for the 14 days cover etc etc

InsideInsurance

There is potentially also a cancellation fee on top of the pro-rata to pay so make sure you read everything before making another mistake (or call them for confirmation before buying the new policy)

AdamHarvey

I just got off the phone to my current insurers and they are unwilling to say how much the pro-rata charge would be, only that there would be a £15 admin fee plus the pro-rata charge and that after 14 days if I cancel it'll be £120 plus the pro-rata charge :mad:

It puts me in a difficult position as I would need part of the deposit to put down on another insurance policy but without knowing how much exactly it puts me at risk if I cancelled and they took a big charge

InsideInsurance

Why are you looking to switch? Why did you buy an ANNUAL contract without checking the competition first?

Faith177

Pro rate is normally the insurance premium (withour any add ons) divided by 365 times the amount of days you have been on cover

AdamHarvey

InsideInsurance wrote: »

Why are you looking to switch? Why did you buy an ANNUAL contract without checking the competition first?

I'm sure you're aware quotes and insurance prices change alot especially if you are a relatively new driver believe me I've done hundreds of quotes trying to get the best price and now It just so happens another company is able to offer me a better deal than before with more cover and therefore I should be entitled to cancel within the 14 days.

AdamHarvey

Faith177 wrote: »

Pro rate is normally the insurance premium (withour any add ons) divided by 365 times the amount of days you have been on cover

Well if that's the case then It would be £40 + the £15 admin free (If cancelled today) which sounds reasonable enough, Do you know if they cancel the policy and refund the remaining cost immediately or would they give a date where the policy would cease?

Quentin

AdamHarvey wrote: »

.... I should be entitled to cancel within the 14 days.

According to your OP, you are entitled to cancel.

£15 cancellation fee sounds comparitiveley cheap (its £75 with budget!).

As you have been advised in post#6, pro rata can be worked out.

Your insurer may not cancel until you have returned your certificate, so check that out, but as you have learnt, once your 14 days are up, cancelling will be much more expensive!

Faith177

It depends most of the time they will cancel from the date you state. The money may take a few days to be returned to your account though whereas the money for the new co may be taken straight away so you may have an overlap.

As I said that's how it is normally worked out if it's higher just ask them for a breakdown

InsideInsurance

Insurance prices can change daily until you have a quote at which point that companies prices are fixed for the validity period of the quote (normally 30+ days or up to the requested start date)

Never buy until you have shopped around and never shop around after you've bought