Car insurance cancellation con.....!!!!!

Bantex_2

Parisien wrote: »

My point is, is it really fair...........when they add up the charges/penalties, they come to 1/2 the premium.........isn't just their way of not refunding?


In the past there was always a decent/pro rata proportion being handed back, now nothing.

You are the one that broke the contract, why would you expect to get anything back?

AdrianC

Parisien wrote: »

I decided to cancel my Lancaster insurance for a 2nd car, fee was £302 including breakdown cover. The policy was in force for 7 months.

So on a purely pro-rata basis, £125 "could" have been due back.
Did you make any claim on the policy during that time? Did you call the breakdown cover out?

What did your policy paperwork tell you seven months ago would be refunded in the event of mid-term cancellation?
What have they actually charged you?

Parisien

So you're not a risk anymore........but they still charge you, no claims in 20yrs

motorguy

Parisien wrote: »

So you're not a risk anymore........but they still charge you, no claims in 20yrs

So you havent read any of the insights or views on here that explain why - particularly post #11.

You're just going to stick with your blinkered view of the world that you're "entitled"?

Why post at all if you werent going to take on board any responses or other peoples opinions?

If you'd told us, none of us need have bothered replying.

Buellguy

Was this a classic car policy? If so read your T & C carefully

forgotmyname

You could buy insurance monthly. But thats high risk and very costly.

vaio

InsideInsurance wrote: »

Who judges fair?

Making some assumptions naturally..... if you bought through an aggregator they've paid confused.com £75 for your years policy. Why shouldnt you refund 50% of it because you've chosen to renege on half of the policy you bought? They dont get any refund from the insurer on the LE cover you bought through them so why should you?

Ultimately there are two choices, either the person thats caused the loss foots the bill or it goes down as a general operating expense and thus everyone pays a proportion of it.

The regulators at the moment are of the mind set that it is fairer that those that cause a cost pay it rather than blanket increasing everyones premiums.

Yep but the regulator also judges what's fair (and can (and does) over rule T&Cs if judged to be unfair)

Their view is that refunds should be broadly pro rata less a reasonable (£50?) admin fee.

OP....if you are getting significantly less than this then lodge a complain and refer to the FOS if still not happy

InsideInsurance

vaio wrote: »

Their view is that refunds should be broadly pro rata less a reasonable (£50?) admin fee.

OP....if you are getting significantly less than this then lodge a complain and refer to the FOS if still not happy

The fee should be reasonable compared to the average cost of cancellation to the organisation, its not a universal £50.

As per one of my prior posts, a previous clients fee was queried against by the regulator (rather than the ombudsman) and put together a paper calculating the average cost of cancellation (actually there were 4 numbers NB cooling off cancellation, NB post cooling off, Renewal cooling off and Renewal post cooling off). All 4 of the numbers were much higher than the £50 charged.

However the last part is correct, if the OP is unhappy he should raise a complaint and if unhappy with the resolution then take it ot the ombudsman

vaio

Yep, I mention £50 with the ? because that a figure that has been previously deemed as reasonable by the FOS.

Having said that, it was a while ago so if an insurer was now charging £60 or £70 that might well be reasonable now.

Nodding_Donkey

Short term insurance is more expensive (pro-rata) than an annual policy. If you cancel early you are charged short term rates.

What's the problem?