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

motorguy

vaio wrote: »

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.

And if its calculated on full months remaining, that 4 months, so he'd be due £100 back in an Ideal World, so hes miffed over £30?

jmhgibson123

a lot of it may be to do with people using cashback sites, you can get up to £100 cashback from places like quidco, then if people cancel and maybe use a different site they can potentially make a lot of money out of it, which is why there is cancellation fee's i dont blame them for this.

vaio

Nodding_Donkey wrote: »

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?

Short term rates are a commercial matter for the insurers, refunds on mid term cancellations of annual polices come under the remit of the FOS and their view is it should be broadly pro rata less an admin fee.

vaio

motorguy wrote: »

And if its calculated on full months remaining, that 4 months, so he'd be due £100 back in an Ideal World, so hes miffed over £30?

yep, but it's *his* £30 and the insurers should give it back, not keep it

EdGasket

The worst scam is where they cancel insurance after a write-off. So a young driver could pay £2K for insurance, after 1 month, write off his car and get back say £1K for write off then lose the remainder of the insurance and have to take out another £2K policy. Has happened.

k3lvc

EdGasket wrote: »

The worst scam is where they cancel insurance after a write-off. So a young driver could pay £2K for insurance, after 1 month, write off his car and get back say £1K for write off then lose the remainder of the insurance and have to take out another £2K policy. Has happened.

Scam ?? Why exactly ?

motorguy

vaio wrote: »

yep, but it's *his* £30 and the insurers should give it back, not keep it

Maybe, maybe not. We dont know the EXACT parameters thats being worked within here - exact time remaining on policy, fees incurred, etc, etc.

Just saying that even a back-of-a-fag-packet calculation shows we're maybe only talking about £30 here.

motorguy

EdGasket wrote: »

The worst scam is where they cancel insurance after a write-off. So a young driver could pay £2K for insurance, after 1 month, write off his car and get back say £1K for write off then lose the remainder of the insurance and have to take out another £2K policy. Has happened.

Hows that a scam?

Person insures car, car gets written off, insurance company pays out, insurance cancelled as car is written off?

I think the trick, if your a young person is - down write your car off.

Ozzuk

There is (or was) a potential loophole, many insurers won't insure certain vehicles so if you purchase such a vehicle then ask them to insure they won't. Then they are in breach not you and so you are entitled to a full pro-rata refund.

Of course, you could always say, look on ebay for a minibus, get the reg.

Disclaimer...I've no idea on legality or even the moral grounding for this but it has worked in the past.

InsideInsurance

Ozzuk wrote: »

There is (or was) a potential loophole, many insurers won't insure certain vehicles so if you purchase such a vehicle then ask them to insure they won't. Then they are in breach not you and so you are entitled to a full pro-rata refund.

Of course, you could always say, look on ebay for a minibus, get the reg.

Disclaimer...I've no idea on legality or even the moral grounding for this but it has worked in the past.

You arent entitled to a full pro-rata refund, normal cancellation rules apply if you want to switch to a vehicle that the insurer isnt prepared to cover for whatever reason.

Some insurer may (have) be more sympathetic in those situations but there is no requirement for them to be so.