Car Insurance cancellation charges

angiek

Can anyone help me please?
I bought car Insurance through Auto Direct (online) (think its with Provident).I pay monthly by DD. I have only recently renewed the policy for a second year (April). I now need to cancel as the car is kna..ered and no longer useable. They cannot offer me competitive insurance on my replacement car, as it is a 4x4 (I do need it to tow a horsebox, its not just a Chelsea tractor!) Their quote is £200 p.a. higher than NFU, so I need to cancel the policy. HOWEVER they have said I will have to pay a total of £84 cancellation and admin charges!! I pay £16.99 a month DD at present, so to cancel the policy is only £50 less than keeping it on for 8 more months until March 08. This seems way over the top to me - is there anything I can do about it? Is it legal?
Many thanks.
Angie.

olly300

I suggest you search this forum for "cancellation charges" you will learn a lot. The cancellation charges are legal and I think it is a waste of your time and energy pursing this.

Basically if you are paying through a broker by DD you may be liable for:
1. Cancellation charges to cancel the credit agreement to pay by DD.
2. Cancellation charges to pay the admin of the broker
3. Cancellation charges to pay the actual insurance companies admin.

I suggest you keep your insurance and when it comes to renewal you ask each company what their cancellation charges are before you buy the policy. And then check the small print when you get the policy document.