Cancellation fee over £200

Craigybabes

Hi, I took out car insurance in sept and paid my policy upfront for £350. I have enquired about cancelling the policy as the vehicle is no longer on the road and I have been told that if I cancel I will only get £23.27 back. I understand that I would have to pay a cancellation fee and admin charges etc but this much??? Is this legal? I haven't checked the small print yet but I'm sure it's not right. Thanks in advance. Craig

Faith177

It depends how much of that £350 was just the insurance premium no add on's like legal expenses, breakdown cover ect.

What is the actual cancellation fee?

Could you provide a breakdown of the £350?

Craigybabes

I'm going home now to read up the small print. I know I didn't have breakdown on it or anything fancy. I'll check shortly and post. Thank you

dunstonh

. I understand that I would have to pay a cancellation fee and admin charges etc but this much???

It wont be that much as a fee but it will include other things. It will likely be made up of a cancellation charge (typically £20-60), a relatively pro-rata cost on the actual premium side (doesnt have to be exactly pro-rata but after 2 months you would expect something like 3-4 months premium as a relative cost). If you have bolt ons, such as breakdown cover (as mentioned) or legal expenses protection etc, then these are often non-refundable as they are transferable to a new vehicle.

Who is the insurer? We may be able to see what their cancellation terms are.

bouncydog1

How did you purchase the policy - direct from the insurer or via a broker? If the latter there may also be a clawback of commission included in the charge. Best bet is to call your provider and ask for a full breakdown of the charges and the calculation of how they reach the refund amount quoted.