Cancellation fee on fully paid car insurance

dave_n_2

My son has just gone to Uni, no longer needs his car.
I insured him with the Co-Op and we had to pay the premium in full as he is a young driver.
I am scrapping his car so I asked to cancel his insurance (which has 1 month left on it).
Co-Op want £120 to cancel the policy!!!!!!!

I could partly understand if there was months left and we were paying monthly installments.
How can they justify £120 when we have paid them in full!

lisyloo

How can they justify £120 when we have paid them in full!

Have you asked them? for a breakdown.
If the car is being scrapped then you could just let it run and he'll get a years no claims.
If the car wasn't being scrapped this would be BAD advice because under European law his insurance could be liable someone else's accident and in turn they could sue your son.
But if the car is being destroyed and you get a certificate of destruction then I fail to see how any liability could occur. I'm sure someone will let me know if I'm wrong.

*Scarlett

There is usually a cancellation fee if you cancel a policy early but £120 seems a lot. What does it say in your policy docs about canx fees?

When you cancel early you would usually get a pro rata refund for the time not used (less any canx fee). Depending on how much you are due back it may or may not be worth cancelling or just wait a month and lapse the policy.

Ask Co Op for a breakdown of the costs for the £120 fee.

If you are not happy with the explanation, follow their complaints procedure and you can escalate it here.

http://financial-ombudsman.org.uk/default.htm

dave_n_2

I asked them for a breakdown and they said it was to turn off the box.
I then asked them what happens to the box if the car is scrapped, they said they would just turn it off remotely without recovering the box itself, without charge to me!!!!!

I think I will just let the insurance continue for another month, park the car off road and then scrap it!

lisyloo

Yep if you have a choice what day you take it to be scrapped (or have it picked up) then why not do it on the last day.
Don't forget to get a refund on the tax disk.

dtaylor84

dave_n wrote: »

I asked them for a breakdown and they said it was to turn off the box.

You never mentioned a box in your first post...

vaio

dave_n wrote: »

I asked them for a breakdown and they said it was to turn off the box.
I then asked them what happens to the box if the car is scrapped, they said they would just turn it off remotely without recovering the box itself, without charge to me!!!!!

I think I will just let the insurance continue for another month, park the car off road and then scrap it!

I suspect the the scrap yard crusher will do quite a good job of turning the box off so as others have said, just let it run to expiry and so no cancellation fee plus your son gets a years NCB.

Does the co-op do auto renew? If so then don't forget to make sure they let the policy lapse on expiry rather than auto renewing.

Quentin

dave_n wrote: »

How can they justify £120 when we have paid them in full!

They set out clearly the cancellation charge if a box is fitted (£120).

Read the ts + cs before buying.

dave_n_2

to be honest the co-op have been an absolute nightmare.
My son gave permission for me to admin his account and insurance and every time I contact them we have to re-affirm my rights.
They never turned up to fit the box on three occasions. When they did, they did it without our knowledge and rang us up to say they had fitted it!!!!
The reports from the box are all 'bent' as it reports the car being driven when it wasn't and as a consequence he doesn't get a discount.
They cancelled his insurance after 3 months because they said the paperwork wasn't uploaded.
I told them the paperwork was there (I took screen captures to prove it) so the said we would have to reapply.
Sent a letter of complaint and they admitted it was their fault.
Still had to re-apply but the good thing was that the new quote was £800 cheaper!!!!

I would advise anyone going with the co-op to manage the co-op.
Their systems are frail and faulty and I have to constantly check that they have the info they need.
They will cancel your insurance without telling you!

vaio

Sounds a nightmare...

dave_n wrote: »

.......The reports from the box are all 'bent' as it reports the car being driven when it wasn't and as a consequence he doesn't get a discount........

The temptation to remove the box and take it on a holiday to spain would be irresistible if I was you. That would generate some good reports...

Parked up in Stansted departures lounge
Travelling at 400 mph across London
Same but across the English Channel

etc etc

McKneff

vaio wrote: »

Sounds a nightmare...



The temptation to remove the box and take it on a holiday to spain would be irresistible if I was you. That would generate some good reports...

Parked up in Stansted departures lounge
Travelling at 400 mph across London
Same but across the English Channel

etc etc

:T:T:rotfl::rotfl::rotfl::rotfl:

ooh, that's wicked....:rotfl: