£100 for 6 weeks motorbike insurance cover??

saska21

I renewed my motorbike insurannce with Swinton Bikes on 11 August 2012, with commencement of the new policy on 11 September 2012. The policy breakdown was as follows:

Motorcycle insurance policy - £68.92
Riders Legal Protection Policy - £30.00
Service charge - £25.00 (service charge for what?!)
Credit card charge - £5.00 (scandalous in itself!)
TOTAL £128.92

I paid the policy in full instead of monthly repayments, a mistake I am unlikely to repeat after this experience!

I sold the motorbike recently and cancelled the insurance yesterday (26 October 2012). This means the policy was in force for only around 6 weeks. First of all, I had to ask if I was getting any money back, to which the representative said "Oh yeah!". Basically, he would have forgotten to refund it if I didn't ask. When I asked how much I was getting back, he said £25 (and some pence)! I could not believe it! So I asked him why I wasn't getting back more, to which he said that there was some admin charge and the legal protection was non-refundable! So essentially I paid over £100 for 6 weeks' insurance.

I think this is an absolute scandal. I assume if I made the payments on monthly basis instead of in full, I would not have had this issue (although, admittedly, I haven't checked if this is strictly true but I assume I just would cancel the direct debit and that would have been it). I also don't understand how they can get away not refunding unused legal protection and what on earth was the service charge for?!

Anyone else came across a similar problem? Or does anyone have an answer for me how they can get away with such a robbery?

Quentin

No, paying by instalment would have cost more! (Early settlement of the credit agreement)

And they would just chase you for the money if you cancelled your dd.

missile

There is usualy a heafty admin charge when you amend or cancel an insurance policy. If you intend buying a.n.other bike next year(?) you could have kept the policy running and transfered it.

You will know better next time.

forgotmyname

SO £60 of your policy would not be returned at all + The Admin charge which was?

They get away with it because you took out a years insurance and no longer require it.

If you bought a years supply of toilet roll, How much of a refund will the supermarket gives when you try returning unused rolls because you dont want to wipe your bum anymore?

Cancelling the direct debit = calls/letters for payment. Then debt collectors then maybe even court.

I wonder can they refuse to pass on the no claims as its still attached to a policy thats not been settled yet?

DCFC79

saska21 wrote: »

I renewed my motorbike insurannce with Swinton Bikes on 11 August 2012, with commencement of the new policy on 11 September 2012. The policy breakdown was as follows:

Motorcycle insurance policy - £68.92
Riders Legal Protection Policy - £30.00
Service charge - £25.00 (service charge for what?!)
Credit card charge - £5.00 (scandalous in itself!)
TOTAL £128.92

I presume you were told about the credit card charge when you took the policy out, if so then you could have paid by direct debit or maybe cheque if it was free.

missile

forgotmyname wrote: »

I wonder can they refuse to pass on the no claims as its still attached to a policy thats not been settled yet?

You do not accrue any no claims bonus when a policy is cancelled.

Buellguy

Sounds about right, mine have just charged me 25 quid to change address, although I can't really argue we've moved from a risk area 13 to a risk area 34 and it's only gone up (for 3 months) by a touch over 4 quid (so 16 quid a year) - but then it is alarmed, immobilised, ground anchored and in an alarmed brick garage attached to the house (just need the raving dobermans now but I don't think the cats would like it LOL)

dunstonh

Or does anyone have an answer for me how they can get away with such a robbery?

What robbery?

All we see here is someone that bought something they didnt understand. Unfortunate but that is the case.

I paid the policy in full instead of monthly repayments, a mistake I am unlikely to repeat after this experience!

Wouldnt make any difference. It is still an annual contract.

I assume if I made the payments on monthly basis instead of in full, I would not have had this issue

yes you would but you would have a charge for credit on top of it.

Unfortunately, you bought a 12 month contract and wish to break that contract. If you cancel a policy you create costs in addition to the costs of supplying it. The cost is largely the same irrespective of the size of the premium. So, someone paying £1000 in premium would pay the same admin charges as someone paying £100. That is considered fairer than percentage based fees.

The lesson to learn here is to understand what you are buying.

forgotmyname

missile wrote: »

You do not accrue any no claims bonus when a policy is cancelled.

Not the current years no claims.

Say i goto an insure with 5 years no claims. After 3 months i cancel but refuse to pay the balance of cover and their charges.

I buy a new bike a week later.. Will i be able to get the 5 years no claims?
Or can they say its attached to the policy thats not been paid for yet?

Hold it to ransom basically. Want your no claims then payup? Or can they not do that?

missile

forgotmyname wrote: »

Not the current years no claims.

Say i goto an insure with 5 years no claims. After 3 months i cancel but refuse to pay the balance of cover and their charges.

I buy a new bike a week later.. Will i be able to get the 5 years no claims?
Or can they say its attached to the policy thats not been paid for yet?

Hold it to ransom basically. Want your no claims then payup? Or can they not do that?

You may be asked to provide evidence of your NCD entitlement. Do you have that?
If you refuse to pay for the cancelled insurance policy, getting NCD will be the least of your problems.

forgotmyname

missile wrote: »

You may be asked to provide evidence of your NCD entitlement. Do you have that?
If you refuse to pay for the cancelled insurance policy, getting NCD will be the least of your problems.

I am asking the question can they withold your no claims if you fail to pay?

I am not in that situation. Just wondered. As i have read a few posts now where they seem to think cancelling the DD and going elsewhere will be the end of the matter.

So the question is. If you owe money on a policy that has not ended yet. Can they withold your no claims. Saying its still attached to that policy or until payments made?

So just going elsewhers means you have zero no claims?