Kwik Fit Insurance Cancellation

artur2sheds

Hi, new to the forum, but felt compelled to join and look for help.
I have just called Kwik Fit Insurance to cancel my car insurance as the vehicle has been scrapped. I am approximately 2 months into the policy which is paid by DD over 12 months. They have told me it will cost £245.59 to cancel! The total for the annual policy is just over £800. Is this the norm from insurers?
Thanks,
artur.

neilmcl

What's your monthly payment?

Foxy-Stoat_3

Check your terms and conditions, the cancellation charges are listed in your policy documents.

Vicmeldrew

Tell them to convince the FOS (now re-badged) because they are not entitled to anything above what it actually costs them to cancel it.

Anything written in your terms does not necessarily mean that you are legally bound by it...it's trotted out to make you believe you are.

dacouch

Vicmeldrew wrote: »

Tell them to convince the FOS (now re-badged) because they are not entitled to anything above what it actually costs them to cancel it.

Anything written in your terms does not necessarily mean that you are legally bound by it...it's trotted out to make you believe you are.

Do you have proof of the above from the FOS?

mcfisco

Sounds like you're being charged 3 months + a small fee

I take it 'approximately 2 months into the policy' means more than 2 months?

InsideInsurance

Vicmeldrew wrote: »

Tell them to convince the FOS (now re-badged) because they are not entitled to anything above what it actually costs them to cancel it.

The FOS hasnt been rebadged at all.

The fees can be done on an average basis. Given the cost of marketing motor insurance and fees paid to aggregators etc the average cost of acquiring a policy can often be over 100 quid and the propensity to cancel a policy is always front loaded.

The FOS has historically accepted 50 to be a reasonable cancellation fee but this was a good number of years ago and therefore it wouldnt be surprising if his hasnt grown since then.


To the OP - you need to get them to give you a break down and cross compare that to the terms of your policy. The problem is that you have bought an annual policy, the fact they gave you a loan to enable you to pay it off monthly is irrelevant.

Add ons, like Legal Expenses, Breakdown etc often are payable in full once the cooling off period has passed, you will have a cancellation fee from the insurer and as kwik fit are a broker they may well have their own cancellation fee or commission clawback