Cancellation charges

Michael_Gray

Hi All

My provider (Performance Direct) are demanding an extra £97 due to 3 points on my license. So I shopped around and found insurance at half the price with LV! However, Im only going to get back £200 of the £400 spent with Performance Direct due to various charges and a £50 cancellation fee.

Surely they cant charge the cancellation fee because I do not wish to accept their additional fee due to my 3 points? Is there anything I can do?

Mick

dunstonh

Surely they cant charge the cancellation fee because I do not wish to accept their additional fee due to my 3 points?

You are the one looking to break the contract. A fee of £50 is within the tolerance accepted by the FOS as being fair (based on FOS publications).

Is there anything I can do?

Wait until renewal. It is rarely sensible to switch mid term.

Michael_Gray

That implies that an insurer can charge whatever they like for amendments, and if you dont accept the additional charges, you are the one breaking the contract.

dunstonh

Michael_Gray wrote: »

That implies that an insurer can charge whatever they like for amendments, and if you dont accept the additional charges, you are the one breaking the contract.

They can effectively charge whatever they like for the risk premium. However, their cancellation terms have to be published.

Quentin

You are the one who got the points, thereby moving the goal posts!

vaio

Michael_Gray wrote: »

Hi All

My provider (Performance Direct) are demanding an extra £97 due to 3 points on my license. So I shopped around and found insurance at half the price with LV! However, Im only going to get back £200 of the £400 spent with Performance Direct due to various charges and a £50 cancellation fee.

Surely they cant charge the cancellation fee because I do not wish to accept their additional fee due to my 3 points? Is there anything I can do?

Mick

Most policies only require disclosure of points at renewal.

Read your policy and see what it says

Michael_Gray

I cancelled the policy them. Insurance stops right away, but I dont get my (50%) refund for 4 to 6 weeks.

Secondly the refund I get back is minus a £44 "Commission Clawback" (in addition to the £50 cancellation fee). I cannot find mention of this Commission Clawback anywhere in the contract terms and conditions. Therefore should I ask them to point out where this figures in the original contract terms, and if its not there can I insist that they refund this too?

dunstonh

a commission clawback would normally apply to the broker. So, you need to look at the broker documentation and not the insurer documentation.

Michael_Gray

Its the broker documentation Im looking at. No mention of a commission clawback. Ive emailed them - but they never actually reply to customer service emails. So is it worth a phone call?

dunstonh

email is not generally regarded as a reliable source of communication. Some firms are very poor on email. So, a phone call may be worth it if you want to follow it up.