Car insurance cancellation charges

carolyn0903

Hi, When shopping around for cheaper car insurance rates, please check with your current insurer how much they will charge you to swap, so just a hint, I have just been charged £35 to cancel my policy with the Post Office.

nifflespink

I've actually just spoken to my car insurance company about cancelling. My car is now dead and I may get another car next month...but considering I have 6 months left on my policy, all I'll get back is £33 if I cancel! What's more, if I add my potential new car on it (which is just another runaround, nothing special, I have to pay £120 for the remining five months!! I find this ridiculous!

Word of advice...avoid 1st Quote (the broker) and Carline (the insurer)...for this and other reasons I am not impressed with them, not one iota!

dunstonh

carolyn0903 wrote: »

Hi, When shopping around for cheaper car insurance rates, please check with your current insurer how much they will charge you to swap, so just a hint, I have just been charged £35 to cancel my policy with the Post Office.

And quite correctly too. You are breaking an annual contract by switching early.

craigboy

dunstonh wrote: »

And quite correctly too. You are breaking an annual contract by switching early.

I will sit here and clap you for that post.

SUPRISED BY CANCELLATION CHARGES? READ THE EFFIN POLICY BOOKLET WHEN IT COMES THROUGH TO YOU? ITS NOT A FREEBIE TO RIP UP AND USE AS COASTERS FOR YOUR TEACUPS YOU KNOW.

Christ sake, why do you think companies send you policy booklets? I have been with Budget for the past 10 years.......wouldnt EVER change, even though I found a quote £35 cheaper this year, I stuck with Budget. Why? Because I am loyal, and theyve doen alot for me in the past. Unlike these other customers who change every year - did you know your in a whole heap of poo if you have a claim and you have changed insurer each year?! Wont tell you why as it's an insurers secret, but I buzz off it!! Read your policy booklet for further clues on why....

makfai

Pass me those reins while you climb down from your high horse.

The charges she is referring to may be the same ones I had to pay...the broker's admin charges NOT the penalty from the underwriters on early cancellation.

I was charged £30 to cancel by the broker; the charge for renewal is £8. They confirm that the transaction in both cases requires the same amount of work.

I have no problem with the insurance company balancing the cost of the risk it originally took on but surely you can't support a broker charging these extortionate fees?

erique7

Hmmmm I think charging a cancellation fee is fine but tesco are currently trying to charge me £108 for cancelling my policy (thats equivilent to a quarter of the annual policy!).

I originally called up and was told the amount would be £79 but if I called at the end of the month it would be cheaper - so waited til the end of the month and was told it was now £90! Then received a letter saying it was £108 - !!!!!!???!!!

So I've written and complained and what a surprise they are saying they haven't received my letter (funny that as I sent it recorded delivery and royal mail say they delivered it!)

Grrrrrrrrrrrrrrrrrrr

olly300

makfai wrote: »

Pass me those reins while you climb down from your high horse.

The charges she is referring to may be the same ones I had to pay...the broker's admin charges NOT the penalty from the underwriters on early cancellation.

I was charged £30 to cancel by the broker; the charge for renewal is £8. They confirm that the transaction in both cases requires the same amount of work.

I have no problem with the insurance company balancing the cost of the risk it originally took on but surely you can't support a broker charging these extortionate fees?

Well makfai you are entitled to put in a formal complaint to the broker if you have evidence that the work is the same, and then entitled if they don't uphold your complaint, to complain to the financial ombudsman.

The only reason charges became cancellation charges with insurance companies became more transparent was because people complained.

olly300

erique7 wrote: »

So I've written and complained and what a surprise they are saying they haven't received my letter (funny that as I sent it recorded delivery and royal mail say they delivered it!)

Grrrrrrrrrrrrrrrrrrr

1. Go to RM track and trace, and find out who signed for the letter or the exact time it was delivered from the RM office.
2. Write Tesco's another email or letter informing them that it was signed by xxxx or delivered on xxx time and that if they don't reply to your original by a date that is 2 months way the date the original letter was received by them you will be reporting them to the financial ombudsman.

You will either find Tesco's will become extremely helpful or ignore you. If they ignore you report them to the financial ombudsman.

BTW I have an issue with my own car insurance company over addresses and the words I will complain to the financial ombudsman seems to be making them work a bit harder.

makfai

olly300 wrote: »

Well makfai you are entitled to put in a formal complaint to the broker if you have evidence that the work is the same, and then entitled if they don't uphold your complaint, to complain to the financial ombudsman.

The only reason charges became cancellation charges with insurance companies became more transparent was because people complained.

Action already in hand. As with bank charges and mobile phone charges nothing will happen until we make our complaints to the regulator and I have written to the IFSA about this.

shelly

craigboy wrote: »

Unlike these other customers who change every year - did you know your in a whole heap of poo if you have a claim and you have changed insurer each year?!

We change ins co's every year. Had a claim last year and changed co at renewal. Had nothing out of the ordinary happen or said to us.

I think your scaremongering

FlameCloud

shelly wrote: »

We change ins co's every year. Had a claim last year and changed co at renewal. Had nothing out of the ordinary happen or said to us.

I think your scaremongering

He is, massively!

The only thing you can see is when they came on policy, any further requires more digging than normal claims handlers have got time for. It is expected now that premiums and the market is so cut throat.