ASDA Car insurance. advice needed

popoa08

Recently we bought a new car and got it insured with Asda money.
After driving it for a week we realised that it is not suitable for our needs and so we made the decision to sell it on.
The first thing I did was rang Asda to ask about cancelling. Please note we were only covered with Asda for 5 days. (So still within the 14 day cooling off period)

The advisor said cancelling would be no issue and before we proceed with the cancellation I should listen to the charges involved.

1. Cancellation fee of £45
2. Legal expenses for the days of cover
3. Commission for the 5 days of cover
4. A daily charge (unspecified amount) for the 5 days spent of cover
5. Administration charges for the setting up and applying of the policy.

I was absolutely shocked to hear all this but cancelled the policy then emailed customer services to say I am not happy and do not agree to the charges.

I got a reply back saying its all in the terms and conditions and I should have read that before buying the policy.

Yes, it may be in the terms and conditions but I didn't think I would be selling my new car so didn't think I would be cancelling the policy either!

I have emailed back saying as I am still within my 14 day cooling off period I will not be paying these charges and if the money is taken from me without my authorisation then I will be taking the matter further. (I paid the full amount upfront so they have £1000) of mine

I really don't know what to do. I am very distressed and upset and I feel these charges are unfair. A cancellation fee on its own is fair enough but the rest of it seems too much.

I hope someone can help

Thank you

Faith177

I appriciate you are in the "cooling off period" but the charges can still stand if the FOS deem them acceptable which they would as some charge a canc fee of over £75

They have provided you cover for the last 5 days so you need to pay for that cover

Your authorisation for the charge was given when you accepted the policy

If you could cancel after 14 days with no charges you could just keep changing company without ever having to pay for insurance

popoa08

Faith177 wrote: »

I appriciate you are in the "cooling off period" but the charges can still stand if the FOS deem them acceptable which they would as some charge a canc fee of over £75

They have provided you cover for the last 5 days so you need to pay for that cover

Your authorisation for the charge was given when you accepted the policy

If you could cancel after 14 days with no charges you could just keep changing company without ever having to pay for insurance

Yes, fair enough they charge a cancellation fee of £45 for cancelling the policy. But what about the legal expenses and commission? What is a cooling off period for if they are going to charge for the days on cover?

Faith177

popoa08 wrote: »

Yes, fair enough they charge a cancellation fee of £45 for cancelling the policy. But what about the legal expenses and commission? What is a cooling off period for if they are going to charge for the days on cover?

the commission goes to Asda and the cost for the time on cover go the insurance comany so asda have to keep some commission so they make money too as they are only a broker.

As for Legal that has provided you cover too so you will need to be charged for that

forgotmyname

popoa08 wrote: »

What is a cooling off period for if they are going to charge for the days on cover?

The cooling off period is not a period where you can get free cover.

Its a period where you can cancel your years insurance without having to pay for a full year.

Bit like buying a years suply of beans, Supermarket give you a discount for buying a years supply.

You eat 5 days worth and decide you dont want the rest they want the full retails price of the used tins.

The cooling off period is not 14 days free insurance.

OnanTheBarbarian

I'm not 100% on this, but i believe the "add ons" like legal cover are not refundable, only the main motor cover is refundable. But how this works with the cooling off period I'm not certain.

forgotmyname

Within the cooling off period they should be able to cancel them.

InsideInsurance

OnanTheBarbarian wrote: »

I'm not 100% on this, but i believe the "add ons" like legal cover are not refundable, only the main motor cover is refundable. But how this works with the cooling off period I'm not certain.

There are some where these become non-refundable after the cooling off period, but that is rarer than it used to be. Within the cooling off period I dont know anyone who doesnt just charge for time on cover.

stator

Transfer the insurance to your next car.

popoa08

stator wrote: »

Transfer the insurance to your next car.

I tried to transfer it to my older car which needs insuring on Friday but unfortunately they do not cover that car.

popoa08

What is more frustrating is that they cannot tell you what these charges are before hand. Its all calculated within 14-30 days (a long time) by the cancellations team . So its not as if I even know what I'm going to get charged !