Cancellation of Motorcycle insurance

samscash

I am selling my motorcycle and not buying anything else.
I called up the insurance company and they stated that they can cancel the policy and I would have to pay an additional cancellation charge of around £20. Is that reasonable and right?


I can understand that I don't get any refund, but surely cancelling cannot incur further costs?


Also can I just let the insurance run? The person on the phone stated that the purchaser may not be able to get any insurance as the vehicle will be double insured?


Help - what should I do just stump it up?


thanks

huckster

Check policy terms. If it states £20 cancellation admin fee, you should pay it.

You can't let the policy continue to run, as you have an obligation under the policy terms to advise Insurers of change of circumstances. If you let the policy run, a new owner does not insure, your current Insurers might still be liable to third party accident victims under Road Traffic Act, as the only Insurance in force. They would then sue you under breach of contract to recover their loss.

samscash

Ok thanks I just need to work through the details

rs65

samscash wrote: »

The person on the phone stated that the purchaser may not be able to get any insurance as the vehicle will be double insured?

The person either made that up or doesn't know what they are talking about.

As Huckster says, you need to tell them. Depending how long the policy has to run, you could just ask to suspend it pending purchase of new bike - and then let it lapse at renewal.

samscash

The policy has about 6 months to run. I am tempted to let it lapse. Let me call them again and ask about suspending it, although Sod's law there will be a fee for that as well :-(

rs65

samscash wrote: »

The policy has about 6 months to run.

Are you sure you wont get a refund for 6 months?

agrinnall

Why do you think you won't get a refund for the unused portion of your premium? Is that what the policy says? If it does I'd say it's a bit of a cheek to charge an extra £20 on top. I got a full refund for the unused days of my cancelled motor policy so the fairly small admin charge I had to pay wasn't unreasonable.

samscash

I checked my documents. If the policy has got around 6m to run I only get something like 10%. That is from the insurer. The broker, Devitt, then levies a £55 admin fee which means after the broker refund I still owe them money!

Turn_to_Grey

Judging by the lower cancellation fee, you say Devitts fee is £55, against your quoted £20, you have had a refund of premium of around £35. That has gone to your lower cancellation fee.
That's what happened to me when I cancelled my policy.