Car Insurance charge for not going second year

rayday2

This is weird but we went with Its4me.co.uk last year for car insurance, the renewal notice came through and the cost had shot up so we shopped around and informed them we didn't want to go with them the second year.

Today we receive a letter to say that because of administration costs of cancelling the policy a £30 charge will apply which apparently is in the terms of the policy. Thing is we weren't cancelling we were just not going with the second year.

They are threatening to charge the card we used to set the account up on, they won't get it because we are cancelling those cards but how can we fight this?

iceicebaby

Did you inform them you did not want to renew before the renewal date or after ?

lisyloo

they won't get it because we are cancelling those cards

Sorry, but cancelling the cards will not stop the transaction.

The important fact is did you cancel it before the renewal date or after?

rayday2

I did cancel it well before the renewal date and they have acknowledged this.

deanos

rayday2 wrote: »

I did cancel it well before the renewal date and they have acknowledged this.

There you go then thats what the £30 charge is for, you cancelled the policy rather than let it expire.

deanos

s9701912_lien wrote: »

Its a good lesson for all the car owners that it seems that we are overwhelmed by the cheap or the cheapest car insurance offered to us by car insurance company that we tend to forget to read the content of the contract papers.

It seems that we get the cheapest car insurance but behind the offer are a lot more complicated, things that normal people dont understand and cost extra money...

I have two options for you...

1. Dont pay the cancelation fee and stay with them.

2. Pay the cancelation fee and search for a new car insurance company. but this time you have to read the papers.

Im not recommending any car insurance company for you but if youll take the 2nd option try this site for car insurance search... UK CAR INSURANCE LISTINGS

You seem to be advertising your site alot on here , your posts have been reported for advertising

tripled

deanos, with many companies you have to cancel, you can't just let it expire as they auto renew.

rayday2

We definately worded our letter that when the current policy expired we were not going ahead with a second year so therefore there are no terms of agreement left as the policy has expired or will in a few days time.

Well in true MSE style I think this admin charge is not right, I have read the policy from beginning to end and there is nothing about what happens if you don't stay with them for a following year - to me it is there mistake and not mine. I have told them I am reporting them to the FSA and requested a written breakdown of the admin costs.