Help, please - Can a car insurance company charge a cancellation fee for...

Funkadelia

for cancelling a policy midterm?

I did not sign a credit agreement and have been paying monthly.

The company in question is Admiral. I have found a policy which
is £450 cheaper!

Many thanks in advance for any help on this matter.

Kind regards, Paul

InsideInsurance

Yes, the regulator supports charging a fee for mid term cancellation rather than charging everyone more.

The Ombudsman has previously said that fees of £50 are considered reasonable but that was several years ago now and so you'd expect inflation to have pushed those up.

Before cancelling, speak to Admiral about the cheaper policy elsewhere. Whilst they wont do anything about the inflight policy they may be able to do a new 12 month policy from today at the same price and waive the cancellation fee for stopping the old one

Funkadelia

Thank you so much for taking the trouble to clear this up.

Although it isn't great news for me I appreciate that you have explained this clearly and quickly.

Kind regards, Paul