Car Insurance Cancellation Help

2woodward2

My son has just got a new car and wanted to update his Asda insurance but for the 4 remaining months of the yearly policy he was quoted an extra £270. He went onto a comparison site and he could get a new full years insurance for £310. He decided to do this and contacted Asda to cancel his remaining 4 months as their quote was too high. They said as there is only 4 months to go he would not get any money back and that in fact they wanted £65 to cancel it.


My question is can anybody tell me if that is correct. Is he due any reimbursement for the 4 months he is not with them, which we worked out as about £120. Also I know if they amend your policy they have charges but should they charge £65 just to cancel the policy.


Thanking you in advance of any replies.

straighttalker

Read the terms and conditions and you'll have more info. Also remember if you cancel now, you won't have that year's NCB.

cajef

From the T & C, did you request an explanation of the charges?

If you wish to cancel your insurance contract, please call our customer service team on
0333 222 4544, we will explain how a refund is calculated and the cancelation charges
that apply and whether there will be a refund due or any further payments required from
you to settle the policy. Don’t forget that it’s an offence to drive a car without insurance.

2woodward2

Thank you both.
My son was at work when he was trying to organise this and so didn't have the T&C paperwork.

He did phone Asda's customer service team and their explanation was that because it was only 4 months to finish the policy there would be no refund. They also said they wanted £65 to cancel it.
That seemed wrong and I was wondering if people on this site had come across this before.


Why would people not getting any refund for their remaining months also pay for cancelling their policies. Could we just forget about the refund and let the remain 4 months run out.
Thanks

foxy-stoat

2woodward2 wrote: »

That seemed wrong and I was wondering if people on this site had come across this before.


Why would people not getting any refund for their remaining months also pay for cancelling their policies. Could we just forget about the refund and let the remain 4 months run out.
Thanks

This seems correct if he has only been with them for less than a year, the t&c's will explain the cancellation charges. The days of pro-rota fees and a few quid admin fees are long gone.

Unfortunatley you cannot just let the insurance run out as your son will still need the NCD and he could be liable if the new owner has an accident. He really should just do the swop and keep the existing policy going and do a switch at renewal.

He will get another years NCD as well !

2woodward2

Thank you foxy-stoat, a bit confused by the last paragraphs explanation. Are you saying pay the extra £270 for the remaining 4 months with the Asda Insurers he is with now and then renew for a new year.
If so I think its best to cancel his existing policy and pay £65 and then renew now for £310 with another insurer.
Also the old car he has the policy with is going to be scrapped and so no new owner is involved.
He has over 10 years NCD and doesn't need the extra year.

angrycrow

Has he had any claims on the policy.

2woodward2

No he hasn't had any claims, for or against him.

dacouch

Is your son paying his insurance by instalments...

2woodward2

No instalments, he has already paid for a full year £360. So we was maybe expecting £120 refund for the outstanding 4 months.


The way I see it, its stacked against the people wanting to get a new car and updating their policy. The insurance companies quote a stupid large amount for the extra months, then knowing that if you don't accept this they just pocket the remainder of the insurance with out it being used and then charge a £65 cancellation fee for the privilege of doing this. How is that fair.

rich13348

2woodward2 wrote: »

No instalments, he has already paid for a full year £360. So we was maybe expecting £120 refund for the outstanding 4 months.


The way I see it, its stacked against the people wanting to get a new car and updating their policy. The insurance companies quote a stupid large amount for the extra months, then knowing that if you don't accept this they just pocket the remainder of the insurance with out it being used and then charge a £65 cancellation fee for the privilege of doing this. How is that fair.

What are the old and new cars? The chances are that the new one is listed in their databases as being much more likely to be involved in an accident.

If he doesn't need the years NCD then just cancel the policy and take out a new policy.
You will need to look at Ts & Cs to find out what you are or are not due. Your son agreed to them when he took the policy out.