Car Insurance Cancellation Fees

damson999

I also cancelled car insurance on my car which I unfortunately had to dispatch to the breakers yard. I had no replacement car so it was not a transfer, just cancellation

I was informed that I would have to pay an administration fee of £69 to the insurer which included their admin fee plus the admin fee of the real insurance company, seeing as they were a broker

Admin fees are not explained clearly on these policies and it is a disgrace that they can get away with this.

shrewd_shrew

Endsleigh just demanded £75 to cancel my motor policy - ended call politely but in shock. Did a bit of online digging, found this high even in comparison to other companies. Called Endsleigh back told them wouldnt pay £75 but would pay £30 to fall in line with other providers. Lots of muttering. Put on hold for ages. Then AGREED! In fact paid £22.

rudekid48

damson999 wrote: »

I also cancelled car insurance on my car which I unfortunately had to dispatch to the breakers yard. I had no replacement car so it was not a transfer, just cancellation

I was informed that I would have to pay an administration fee of £69 to the insurer which included their admin fee plus the admin fee of the real insurance company, seeing as they were a broker

Admin fees are not explained clearly on these policies and it is a disgrace that they can get away with this.

If the admin fees for cancellation were not disclosed at the point of purchase as you say, then they can't "get away" with it and you should raise a formal complaint which can then be escalated to the FOS if you are not satisfied with the outcome or 8 weeks have passed. However, it would be extremely rare these days for cancellation charges to not be included in the up-front documentation - so are you absolutely certain that you actually read them before accepting the terms?