Can A Car Insurance Company Do This?

byronwells

Alright guys


I am just wondering if a car insurance company is allowed to charge me £80 just for having the policy out for 3 days?? Even tho the whole month's car insurance is £118.


The reason of cancellation is because I got a new car and a new policy with a different company

Quentin

Cancellation charges will be allowed and set out in the policy.


Ask them to itemise the charge and dispute anything that is amiss.

byronwells

Quentin wrote: »

Cancellation charges will be allowed and set out in the policy.


Ask them to itemise the charge and dispute anything that is amiss.

But what about a cooling of period?? It was only 3 days

InsideInsurance

byronwells wrote: »

But what about a cooling of period?? It was only 3 days

Cooling off means you CAN cancel it not that its fee free to cancel.

Without a cooling off period you'd have no statutory right to exit the contract before the natural end (12 months in the case of car insurance typically)

byronwells

InsideInsurance wrote: »

Cooling off means you CAN cancel it not that its fee free to cancel.

Without a cooling off period you'd have no statutory right to exit the contract before the natural end (12 months in the case of car insurance typically)

Yes I understand that but if I got told when I phone to cancel the policy that it would be £25 cancellation fee how does that equal to £80???

Quentin

See #2.


Once it's itemised come back if anything looks amiss.

byronwells

hmm that's the only thing I can do or just pay it................ Just another way for them to make more money

Quentin

Only pay it if you agree you owe it.


The £25 is just the cancellation fee. You need to find out what the other £55 is.

InsideInsurance

byronwells wrote: »

Yes I understand that but if I got told when I phone to cancel the policy that it would be £25 cancellation fee how does that equal to £80???

Then you have potential grounds to complain if you were miss informed but this only really holds a lot of weight if you would have made a different decision had you known the correct number.

This also in part depends on what you actually asked. If you simply asked what the policy cancellation fee is they may well have correctly said its £25 but you may also have a commission claw back or credit agreement cancellation fee and/ or time on cover at temp rates etc.

Whatever the result you need to be in contact with them either to get a breakdown of costs or to register your complaint

OnanTheBarbarian

If you had add on products like legal cover they usually don't give any refund when you cancel, but I am not sure if they usually are also included in the cool off period, perhaps others can elaborate?