Car insurance RIP OFF !!!!!!!

bouncydog1

Did you have any add ons to the policy such as legal expenses cover, breakdown etc as these are charged for the whole year up front usually and there is no refund if they are cancelled part way through?

vaio

bouncydog1 wrote: »

Did you have any add ons to the policy such as legal expenses cover, breakdown etc as these are charged for the whole year up front usually and there is no refund if they are cancelled part way through?

and this is one that is long overdue for the FOS to have a look at.

I can't see how it can be "fair" not to refund on things where the possibility of a claim dies with the main policy so, if pushed, I'd expect an insurer to fold & refund rather than face an FOS referral

mikey72

vaio wrote: »

and this is one that is long overdue for the FOS to have a look at.

I can't see how it can be "fair" not to refund on things where the possibility of a claim dies with the main policy so, if pushed, I'd expect an insurer to fold & refund rather than face an FOS referral

We don't know it hasn't been, they may have adjudicated it many times. and simply not published anything yet.
It always worth putting in a complaint if an insurer ever refuses to refund fairly.

bouncydog1

Does the cover on the add ons end with the motor policy though? If a legal expenses product is bought then there is a possibility that it would cover legal expenses cover for other things other than motor incidents specifically relating to the motor insurance cover. Therefore the argument is that the cover on the legal expenses product is still in force.

Also what about breakdown - it could be a policy where the person is covered rather than the vehicle, meaning that cover is in place if a vehicle in which they are a passenger breaks down.

I don't think you can argue carte blanche, although I am with you on a refund if the cover is indeed linked to the motor policy terms!

vaio

fair point but even if the legal cover/breakdown etc can be used "stand alone" I don't see any reason why it can't be cancelled with refund just like the car policy.

If you accept that cancelling a policy does incur costs in the tens of £ then I can see an argument that given the low cost of some of the add ons the admin costs would outweigh the refund but, just as the admin costs on set up are zero because it "piggy backs" on the motor policy surely the same applies on cancellation?

Cancel the main policy and the default is to cancel the "add ons" at the same time

rudekid48

vaio wrote: »

fair point but even if the legal cover/breakdown etc can be used "stand alone" I don't see any reason why it can't be cancelled with refund just like the car policy.

If you accept that cancelling a policy does incur costs in the tens of £ then I can see an argument that given the low cost of some of the add ons the admin costs would outweigh the refund but, just as the admin costs on set up are zero because it "piggy backs" on the motor policy surely the same applies on cancellation?

Cancel the main policy and the default is to cancel the "add ons" at the same time

A lot of add-ons are more of a commodity purchase - a fixed price for a fixed product. In some ways it would be like buying a loaf of bread and then asking for some of your money back because you only ate half the loaf.

vaio

yep, also a fair point and one which I'd agree with if the punter had bought the "add ons" independently having decided they needed it.

What I dislike is that they are often "hard sold" or even included by default with motor policies and, I guess, offer a significant revenue stream to insurers so should be dealt with in the same way as the main policy

mikey72

rudekid48 wrote: »

A lot of add-ons are more of a commodity purchase - a fixed price for a fixed product. In some ways it would be like buying a loaf of bread and then asking for some of your money back because you only ate half the loaf.

Not even significant set up costs then.

rs65

vaio wrote: »

fair point but even if the legal cover/breakdown etc can be used "stand alone" I don't see any reason why it can't be cancelled with refund just like the car policy.

Exactly, there may be benefits like breakdown cover whilst being a passenger in another car but if you choose to cancel why can't you get a refund.

I don't get the loaf of bread argument. You are not buying a loaf of bread - you are buying a 12 month supply of bread. If you want to cancel after 6 months, why do you have to pay for 12.

Personally, I think you are buying 12 months of a service and should see it through but if you can cancel car insurance why not cancel the add-ons too.

I know it's the way the industry works but I would also like to see an FOS ruling on it.