Charged for canceling insurance

FlameCloud

Actually working in insurance fraud, I assure you it isnt. (as long as you tell them!)

olly300

Someone on this board did some research because they had a bike and it cost them more than the policy to cancel the remaining time on it and they discovered under the law (Road Traffic Act) it is not illegal to have 2 lots of third party insurance on one vehicle. However the problems will come if you claim as the insurance companies will presume it is fraudent until proven otherwise as even if you claim from one company the other company will be involved.

Anway as I stated before the Financial Ombudsman website indicates clearly that while insurance companies are allowed to charge you to cancel insurance if there are any months remaining they cannot simply refuse to refund you your pro-rate insurance premiums. So I suggest you all complain in writing using your companies formal complaints procedure and mention that if you are not satisfied that you will escalate to the ombudsman.

Rogerb_2

FlameCloud wrote: »

Says who? And what crime exactly would it be?

It is only fraudulent if you neglect to tell the insurers come claim time.

Wouldn't there be a problem that each would say you are covered by the other and therefore the claim was not valid? Most insurance policies say I seem to recall, that you are covered unless covered elsewhere.

Prudential charge you one months premium plus a fee which is quite modest - underwritten by churchill.

olly300

Rogerb wrote: »

Wouldn't there be a problem that each would say you are covered by the other and therefore the claim was not valid? Most insurance policies say I seem to recall, that you are covered unless covered elsewhere.

The claim would be valid however I recall in most insurance policies state that they are the insurance company is to sort out what faction of the claim they pay out if you are covered else where. This means the claim could take months to deal with.

FlameCloud

No, one insurance company would take the whole claim on and then send the bill for 50% to the other company.

Far easier that way for all sides.