Cancellation Fee

harrys_dad

Hi everyone, my insurance for one of my cars was £148 a year with The Post Office (yes I am old and it is fairly cheap). I have sold the car and insured the replacement vehicle elsewhere as it was significantly more competitive.

My current insurance had 4 1/2 months to run, and the cancellation fee was £55 which virtually wiped out the rebate. This seems to me a little excessive, anyone know what other companies charge?

(The fee to transfer to the new vehicle was £20, but the quote was £150 a year more expensive than elsewhere so not worth doing)

InsideInsurance

Almost no one doesnt charge a fee post inception.

Fees typically range from £35-75. In some cases you will have two fees, one from the insurer and one from the broker. Most are around £50

In some cases add ons (eg breakdown or legal protection) are charged in full after cancelling them post cooling off period

mills705

As above the post office is a broker. They will give you a pro rata refund less a cancellation fee. If you too out legal then quite often that's non returnable after 14 day cooling off. You will also find that you will pay an arrangement fee as you pay the broker to arrange insurance for you.
Often when you pay so little for your insurance then when you cancel it the refund is small as a result of what I have said above.

harrys_dad

Thanks for that, very helpful both. Interestingly, they also said I had to pay back the £14.81 (10%) cashback the PO had sent me, but when I asked them where in the documentation it said this the operator went to "find out". They returned ten minutes later to say that having spoken to her supervisor they could not show where I had been told this condition existed so they would not ask for it back.

*Scarlett

Good for you "harrys dad" re the cash back! Usually these offers have a time frame - possibly 60 - 90 days of holding (and paying for) the policy so you would normally have qualified for this.

Many insurers do have a mid term cancellation fee - I think FOS has stated that £50 is acceptable in most cases .

And best wishes with the new car - I love a new car