Insurance cancellation administration fee!

Cameron

Hi
Currently arguing over an car insurance policy that hasn't started yet. (starts late March)

Issues have arisen over a previous policy cracked windscreen, supposedly it shouldn't have affected my no claims bonus, but...

Anyway I wish to cancel the policy under the 14 day cooling off SAD FART rules, but they advise me their is a £25 administration fee!

Does anyone know if they are allowed to charge this?

Many thanks in advance

bris

Yes they are, they charge it for an admin fee. They are not allowed to benefit from the charge so have to keep it down to what it actually costs them to set it up in the first place. I have seen some as high as £50.

McKneff

£25 is extremely cheap to be honest. Its nearer £50 normally.

Snap their hands off if you are really wanting to cancel

shaun_from_Africa

Just for your info Cameron, this is the legislation that is relevant to your question.
http://www.legislation.gov.uk/uksi/2004/2095/made
Section 13.6-7

(6) Subject to paragraphs (7), (8) and (9), the supplier may make a charge for any service actually provided by the supplier in accordance with the contract.

(7) The charge shall not exceed an amount which is in proportion to the extent of the service provided to the consumer prior to the time at which the cancellation event occurred (including the service of arranging to provide the financial service) in comparison with the full coverage of the contract, and in any event shall not be such that it could be construed as a penalty