Car insurance -rights to cancel

paulina_3

Hi, just wondered what rights do I have when comes to cancelling car insurance?

The story:
Yesterday checked online on moneysupermarket for the cheapest quote (as it is my first car,new driver), paid deposit, and received an email that someone will call me (which apparently never happens?). Anyway, today I have received a phone call, a guy was confirming my details, and he had to change few things (mileage etc), after these changes my monthly installments were to be changed from £104 per month to £165 per month. At first I said I would like to call him back in 5 min, and discuss this with someone, he didn't agree saying he will not be able to hold this price for me and that this is the best price I will be paying as a new driver anywhere else. I felt a little under pressure and stupidly agreed.
Straight after this phone call I discussed with some friends who know much more (I never dealt with this before). They said it is way too much and I was fu....

I check online again with correct detail and have quotes like £108 per month for example from M&S.

I called them literally 10 min before I actually received docs via email, saying I have changed my mind, found cheaper, want to cancel. And I was told not a problem but will have to pay £45 cancellation fee plus 10% of my premium.
I have done my research and checked CAB and this does not seem right, could someone please advise? I know I have 14 days to cancel, and can be charged small cancellation fee, which I understand, but what is this 10%?

Insurance company says:
''Your cancellation rights
If you are a private customer, you have the right to cancel a new policy within 14 days of when you purchase your policy or of when you receive your policy document, whichever is later, and a renewed policy within 14 days of renewal date. Provided you
have not incurred any claims during that period, the insurers will pay a pro-rata refund of premium, subject to a minimum charge, from which we will deduct a cancellation
fee of £45.''

What do they mean by 'pro-rata refund of premium, subject to a minimum charge'' and is this right?

Appreciate your help.
KR
Paulina

dunstonh

And I was told not a problem but will have to pay £45 cancellation fee plus 10% of my premium.

That is not allowed.

I know I have 14 days to cancel, and can be charged small cancellation fee, which I understand, but what is this 10%?

You can be charged a cancellation charge (typically upto £50) and premium for the days on cover. e.g. 1/365th for each day.

What do they mean by 'pro-rata refund of premium, subject to a minimum charge'' and is this right?

that should mean 1/365th for every day. Plus £45. There shouldnt be a minimum charge applicable unless you used a broker