Insurance charging me £700 for a cancelled policy

atrixblue.-MFR-.

londonTiger wrote: »

Complete lies and complete non sequitor. Stay on topic.

It is pretty clearly OP is on a financial tightrope which is evident from them missing payments. And being a student. Owning a car as a student is one of the dumbest moves anyone can make.

You can megabus from London to Cheltenham for a pound if you book properly. No reason to drive at all.

:rotfl::rotfl:look at you trying to be some sort of intellectually minded poster and failing at it, as I was on topic in the very post you quoted me as not being on topic and lying to boot, i suggest you use the terms at the right times, come on now LT we all remember your insurance confession :rotfl::rotfl:

sheramber

rudekid48 wrote: »

Yep. Check out the OP's other posts. Has been paid out for a total loss and even managed to damage the courtesy car :rotfl:

Looks like that's the reason for having to pay the full premium - there's been a claim.

Was the claim on the old Tesco policy or on the new insurance which he took out?

walwyn1978

From experience of this (admittedly years ago) don't all companies charge you for the full term if you're paying monthly and have a claim during the term, even if you try and cancel?

angrycrow

What catches a lot of new drivers out on the black box policies is the declared mileage. On a traditional policy there is an element on trust, as the insurer does not know what mileage you are doing. On a black box policy they track every mile.

A lot of new drivers massively under estimate their mileage taking policies for 3000 or 5000 miles a year as they work out cheaper. They then use up this annual mileage allowance in the first quarter and have to buy additional miles. Theses additional miles can costs a huge amount. The driver then thinks they can cancel mid term when they have used up their miles and walk away but the insurer is entitled by the terms and conditions to adjust the original premium to reflect what the actual mileage would have been over the full year.

As a real world example a previous colleague took out a black box policy with a limit of 5000 miles a year which cost him £1800 compared to the £4000 he was quoted for a normal policy. After 3 months he had used up 3000 miles suggesting an actual mileage of 12000 a year. His response was not a problem I will buy more mileage, this turned out to be a cost of an additional £2200 to take him up to his actual mileage. His next response was not a problem I will cancel it when I hit 5000 miles, he was then advised to read the terms and conditions which stated if the policy was cancelled mid term the mileage would be adjusted to reflect a full years mileage and the appropriate additional premium applied before any pro rated return of premium. This ended up that if he cancelled at 5000 miles he would still owe over £900 plus cancellation fees. He did not help himself by speeding everywhere and was eventually banned from the work car park for dangerous driving and excess speed.

Marvel1

Insurance is for the year not monthly, paying monthly is basically a loan.

thescouselander

There's a lot of nonsense being spouted on here. Normally most policies give a pro rata refund for the remaining period if you finish the policy early (minus an admin fee).

OP, why don't you check the policy wording for the section on cancellation.

AdrianC

thescouselander wrote: »

There's a lot of nonsense being spouted on here. Normally most policies give a pro rata refund for the remaining period if you finish the policy early (minus an admin fee).

OP, why don't you check the policy wording for the section on cancellation.

...especially the bit about what happens when you cancel after a claim...

usefulmale

I thought with these black box insurance policies, that the insurance company paid for the installation costs but, if you cancel, you have to pay for both installation AND removal.

However, it still doesn't alter the fact that you cannot afford to run a car.

rudekid48

thescouselander wrote: »

There's a lot of nonsense being spouted on here. Normally most policies give a pro rata refund for the remaining period if you finish the policy early (minus an admin fee).

OP, why don't you check the policy wording for the section on cancellation.

Not when you've been paid out for a total loss.

Iceweasel

thescouselander wrote: »

There's a lot of nonsense being spouted on here. Normally most policies give a pro rata refund for the remaining period if you finish the policy early (minus an admin fee).

OP, why don't you check the policy wording for the section on cancellation.

I think that is normal for policies that are in subsequent years - i.e. have been renewed and continued after the first year.

That would mean that if you cancelled for example in the 3rd month after renewal, you would get a refund of 9/12th of the premium, minus admin fees.

However - if it's a new policy, cancelling in the first year means that they look at the policy as if it was a 'short term' one and re-price it accordingly - so there would be a much reduced refund.

To cancel a new policy after 3 months will not give a pro-rata refund as a 3 month short term policy is much more expensive (per day/month) than an annual one.

If that were not the case everyone wanting say one months cover, would insure for a year and then cancel, and so get it much cheaper.

But this thread is very misleading as the OP hasn't put all his cards on the table.

If the claim he has had was with the policy he failed to pay on time, then of course the total amount falls due.