Car Insurance cancellation fees

remembe

I bought a new car and insured it with a cheaper insurance company, then contacted my previous insurer to cancel my policy on the old car
They called me back to say there is a £75cancellation fee
This seems excessive to me, is it?
Is there a better way?
can I haggle with them, just stop the direct debit, or suspend the policy for a long time in case I ever want to use them again?
the company is igo4, they do all the business online and charge extra for paperwork etc

Quentin

They will be "entitled" to the fee by way of their ts + cs.


Check the wording of your policy to ensure they did inform you what would happen if you cancel early.


If they have complied all you can do is try and haggle them down and get a goodwill gesture. (Or see if they will suspend the policy with no car on cover - don't simply cancel the dd!) If you haven't yet cancelled the policy take care they don't do this themselves as a policy cancelled by the insurer is bad news. You have to disclose it to other insurers who usually ask if you have "ever" had a policy cancelled)

Failing this you do need to pay or face them pursuing you for the money (also they may not co-operate with supplying any proof of NCD if you need that for your new company)


If they have acted outside their ts + cs then obviously dispute the charge by way of a complaint which you can subsequently escalate to the FOS if you are unhappy with the reply

paddyandstumpy

remembe wrote: »

They called me back to say there is a £75cancellation fee
This seems excessive to me, is it?

Probably not excessive if their business model relies on no interaction with the client, and then when the client 'interacts' (i.e. does a change of car or cancels) put the full cost of the staff, the phone line, the EDI costs, updating MIB etc... onto that customer. It allows for smaller margins needed on the majority of risks, as the majority won't need to 'interact'
Ultimately you went with this Broker for their low price, applying this business model allows the price to be that low.

Caz3121

was there not an option to change the car for the remainder of the policy year with igo4?
do you have any NCD that you have declared for your new policy?

remembe

I have no no-claims bonus and was only with them 6months
I may be able to cancel the new policy and continue with igo4 if they give me a better deal

the new policy cancellation fee is £45