Insurance cancellation

Karendavey

Hi I've just phoned my 18 year old sons insurance to get a quote for a new car as his has gone wrong. To be told they won't insure that car so I've just asked them to cancel the policy to be told I've got to pay£150 . Can you tell me is this correct as they won't insure the new car and another insurance company will?? Thank you very much.

dunstonh

What is the £150 for?

It wont be just the cancellation charge. It could be that he pays monthly and the premiums are not in sync with the time on cover. So, some extra premium payment is required. If he suffered a claim, then you have to pay the whole premium for the year. if there are non-refundable extras, then these are "non-refundable"

Karendavey

Hi thank you they told me on the phone it's a cancellation fee of £150.00. I would not mind paying some but as they won't insure the new car, I don't think I should foot there price. Lots of people seem to have issues with them looking on the web!! thank you for replying to me.👍😃

agrinnall

Who is 'them'? If it's a broker then £150 might be possible as there will be broker charges in addition to the insurer's cancellation charge.

rudekid48

£150 sounds like it's a telematics policy. A significant portion of the fee will be to pay for the tech if it is.

Trentenders

What kind of insurer speaks to a policyholder's mum?! Did they really cancel a policyholder's policy at the request of a third party?

Why isn't your son dealing with his own insurance?

FutureGirl

You are changing the goal posts by getting a new car - not the insurance, therefore you should foot the bill.

Your son(!) should call the insurers and ask them what the cancellation charge is, and a breakdown of this charge.

Some of it will be an admin charge, some of it will be a proportion of that months premium. Some of it may even be further charges if you're with a broker as stated. Therefore you should seek clarification on this. Or you can look at your policy documentation, that should outline the charges.

csgohan4

Karendavey wrote: »

Hi I've just phoned my 18 year old sons insurance to get a quote for a new car as his has gone wrong. To be told they won't insure that car so I've just asked them to cancel the policy to be told I've got to pay£150 . Can you tell me is this correct as they won't insure the new car and another insurance company will?? Thank you very much.

What does it say in your policy documents, I can't read it from here?

Gaz1zaUK

There some good advice here, especially asking for a breakdown of the charges as you might find the 'insurance' element is actually the least of them.
Did you but through an aggregator?; the 'fees' go some way to cover the acquisition costs these organisations charge, though all parties are required to state clearly their fees structure in their Terms of Business to customers. The FCA's handbook on such transactions suggests any charges must be reasonable and reflect the manual cost of transacting your business, but these can accumulate if you've bought other cover options such as Legal, Breakdown and/or excess protect covers.
Start with the breakdown of costs and work through from there, though you do have recourse through the Financial Obmudsman Service if their final position is. It acceptable.