Car insurance deposit

beckisback

Hi
I was wondering if someone could help.

I've extended my car insurance with the same insurer for another year on the 17 of January 2014. I asked to pay instalments as I couldn't afford the whole amount upfront. I had to pay £136 deposit.
Turned out I can't afford to drive any more and I had to sell my car few days ago. I don't need that insurance any more so I've contacted my insurer to cancel. I didn't pay my first instalment yet and was stunned when they asked me to pay additional £190!!! (instalments were supposed to be around £90 per month).
I asked about my deposit and they told me it's non-refundable!!! But when I was purchasing that insurance I was told that I have to pay only for 10 months. I was under impression that this deposit will cover outstanding amount after that period).
My insurance for the whole year was around £950 and it looks like even though I was insured only for just over 3 weeks, I will have to pay over 30% of the amount they asked for the whole year!!!

Was anyone it situation like that? Maybe you could help with some tips ow to deal with it because it seems completely insane!
How to fight them?

DUTR

There is nothing to fight, when you have your insurance in instalments, you are taking out a credit agreement for the annual policy price.
Look at it the other way, have a default on your record may cause hinderance when you decide later that you can afford to drive.

thenudeone

You haven't bought monthly car insurance.

You have bought an annual insurance policy and agreed to borrow some money and pay the loan back over a year.

If you cancel an annual policy early there will be some charges. You need to check the terms of your policy.

beckisback

I understand but isn't 30% of the total price too much?? It's not like I would use it for a 3 or 4 months.
And shouldnt deposit I paid cover at least part of it?

DUTR

beckisback wrote: »

I understand but isn't 30% of the total price too much?? It's not like I would use it for a 3 or 4 months.
And shouldnt deposit I paid cover at least part of it?

How much or little do you think it should be? There will be interest loaded onto the agreement, cancellation and admin fees, you are dealing with a commercial company not a charity remember.

specialboy

DUTR wrote: »

How much or little do you think it should be? There will be interest loaded onto the agreement, cancellation and admin fees, you are dealing with a commercial company not a charity remember.

So £360 is reasonable for the company to charge for 3 weeks cover and associated costs? I certainly wouldn't pay up without a fight. I personally would expect to have to pay a couple of hundred quid but not that much

vaio

FOS view is broadly pro rata for time on cover plus an admin fee of £50.

Your premium is £80 a month so I'd be complaining to insurer (and referring to FOS if your insurer doesn't see sense) if the charges are anything higher than say £150 in total