Insurance cancellation help

adspro00

So... I bought an Rx-8 a few weeks ago and unfortunately my father's cancer has gotten considerably worse, which means he is now permanently in hospital, he is in his last weeks now unfortunately.

During this sad time, I have had to sell my RX-8 for the sole reason of the costs involved regarding petrol and my huge 311.14 pound a month insurance cost's.

The car was superb and in the short time I owned it I did have fun.

Now onto the gutting news/question.

I called up my insurance company and asked them to cancel the policy. I made a 789 pound deposit on the 11th of December 2015 and agreed on monthly payments unless the policy was cancelled, if so I would incur a 50% fee of the remaining month and I would get my deposit back.

The guy on the phone @ insureyourmotor said to me that he will get a "Quote" on cancelling it, which I let him do but didn't fully understand the seriousness of cancelling.

He came back 15 minutes later(Was on hold) and informed me that the third party company who gave me the "Loan" for the insurance which I was paying that certain third party back monthly, would be paid back "1154" and the remaining balance including the cancellation fee was 984 pounds that had to be paid otherwise I would go into default and they would take me to court for the remaining money and each time they tried to take monthly payments I would incur a 100 pound missed payment fee....

Now is this right ?

To top it all off, the guy said I have 24 hours to take up a payment arrangement to pay the 984 pounds back to insureyourmotor otherwise they will deduct the full amount out of my account(3843) of a years insurance, and each time this gets rejected or failed payment it is a 500 pound fee. However they will "Only" charge it once a month ??????

So in other words, they are looking to take all my money if I don't pay them in arrangements. 984 on a insurance policy I no LONGER need they are pretty much asking for three months of cover to be paid off to let me "Go" and "cancel" is this right at all ?

If I was paying 311 a month for insurance and my first pay is due on the 15th, then 984 remaining balance(150 cancellation fee) is almost 3 months of upfront insurance cover for the rx-8... surely thats not right???

Can I do anything about this ?

He offered me to pay it back at 300 quid a month but I can't afford that and he said "That's all our system is offering you".....

dunstonh

Now is this right ?

Yes. You took out a loan to pay the car insurance monthly and it falls under a credit agreement.

The insurance premium itself was paid up front by the credit company. By cancelling, you will get a refund but it is not normally exactly pro rata. The further you go into the year, it will be but in the early months you can yourself having to pay more. In your case, a figure of around 3 months worth seems to be the case and that is quite normal.

To top it all off, the guy said I have 24 hours to take up a payment arrangement to pay the 984 pounds back to insureyourmotor otherwise they will deduct the full amount out of my account(3843) of a years insurance, and each time this gets rejected or failed payment it is a 500 pound fee. However they will "Only" charge it once a month ??????

There is no way on this planet there is a £500 fee. Maybe £50 but never £500.

If I was paying 311 a month for insurance and my first pay is due on the 15th, then 984 remaining balance(150 cancellation fee) is almost 3 months of upfront insurance cover for the rx-8... surely thats not right???

3 months for cancelling after a month does seem about right.

Can I do anything about this ?

Ask to pay in instalments. Although they have offered that and you say you cant afford it. Unfortunately, you choice is to either pay it or default and damage your credit record for the next 6 years.