TescoTesco Car Insurance - extremely high cost of policy cancellation

Carssi

Hi

I have a problem with my insurance company. At the beginning of June I have bought a new car insurance with Tesco Bank for £540.21 (including breakdown cover, upgraded courtesy car, driver injury and key fob cover).
Five weeks later I have bought a new car (exactly same year and model as I had before) and wanted to amend my policy with the new car details. When I phoned Tesco I have been told that my premium will go up for almost £200!!! I was gutted as the vehicle is exactly the same as I had before (even bhp are the same). I was so angry that I have decided to cancell the policy in order to find the new one. I was ready to pay two months premium plus a cancellation policy (which is £30).
After all the process I have been informed that my refund will be £280 (approx as can't remember exact amount).
Are they right to do it?
According to my mathematics:

£540.21 / 12 months = £ 90.04

cancellation fee £ 30.00

Total £120.04

so £540.21 - £120.04 = £460.17

It seems that they will charge me £ 177.05 more than I have estimated (for 5 weeks cover!). When I asked why they said that extra cover is non - refundable. I can't even transfer extra covers (I'm only interested in transferring breakdown cover and key fob cover into my new car.
At the end I wanted to cancel the policy cancellation - in order to find a solution but could not do it as everything has been processed.

I do not know what I can do now to recover my money.

Please help

keith1950

Hi, the "extras" you mention are usually covered by other companies and as such are usually non-refundable.


If you deduct the cost of these extras what are the actual cancellation costs ?


This is one reason I never take out these extra policies ( cover ) when buying car insurance.


I don't think you will get very far with reducing these extra charges because it will all be in the terms and conditions that you should have studied before clicking " buy ".

System

Also by holding the insurance for such a short time then they will charge you short term insurance rates for the period that you had insurance which are a lot higher than annual rates.