*Two Policies -URGENT PLEASE*

cheekymole

Just about Dad's car for OH
Dad has until March on his insurance
Husband wants new policy
Insurance company telling Dad that he has to cancel his policy before we can insure in OH's name as it's illegal to have two policies on one car
*Dad's Insurance company wants £35 for him to cancel*

Why can't he just let it run it's course? Is there any truth in what the Ins.Comp. say or are they trying to make money?

raskazz

cheekymole wrote: »

Just about Dad's car for OH
Dad has until March on his insurance
Husband wants new policy
Insurance company telling Dad that he has to cancel his policy before we can insure in OH's name as it's illegal to have two policies on one car
*Dad's Insurance company wants £35 for him to cancel*

Why can't he just let it run it's course? Is there any truth in what the Ins.Comp. say or are they trying to make money?

The 'two policies' issue is a red herring.

The crucial issues are:

1) Who is the main user of your car - I presume this will be your OH, in which case the policy in Dad's name cannot continue, as he will no longer be the main user of the vehcle.

2) Who is the keeper and owner of the car - again, I presume that this will now be your OH, in which case the policy in Dad's name will probably have to be cancelled as most insurers only offer cover if the policyholder (or their spouse) is the registered keeper and owner.

If the assumptions above are correct, then unfortunately the question of cover continuing in Dad's name is out of your hands as the insurer will simply not cover the risk and will insist on cancellation. Then regarding the charge, it is a question of how the cancellation terms are worded in your policy.

cheekymole

But I still can't get my head around ther fact that he will be charged £35 when it can just run but not be used. i.e. he can't claim on the policy if he isn't driving etc at the time of an accident?

raskazz

cheekymole wrote: »

But I still can't get my head around ther fact that he will be charged £35 when it can just run but not be used. i.e. he can't claim on the policy if he isn't driving etc at the time of an accident?

The problem is that if the current cover did continue, then the current insurers could be forced by the new insurers to contribute to certain claims. They clearly do not want to incur this risk.

noh

There is a £35 cancellation charge but is there not also a refund due for the 5 or 6 months left?

Nigel

cheekymole

Yes there is a refund but it doesn't cover the £35. Dad will still end up having to pay them!
I can't understand why it costs a ridiculous amount of money to cancel (i.e. rip up the policy)
Surely if there was only 2/3 weeks left on the policy nobody in their right minds would pay the £35 cancellation charge?

cheekymole

raskazz wrote: »

The problem is that if the current cover did continue, then the current insurers could be forced by the new insurers to contribute to certain claims. They clearly do not want to incur this risk.

The two policies would be with the same company funnily enough as they are the cheapest!

lisyloo

Yes there is a refund but it doesn't cover the £35.

Can you clarify how much the remainder is that you would need to pay

e.g. refund for 5-6 months minus £35.

I can't believe it's much in which case why not just pay it?

cheekymole

It's about an extra £15 to cancel
In response to "why not just pay" - why should he, he's already paid the full premium which he isn't going to use so why pay extra to a greedy insurance company who will just press a button to cancel the policy (it's not a great hardship for them)

raskazz

cheekymole wrote: »

The two policies would be with the same company funnily enough as they are the cheapest!

The same broker or the same insurer? As there is a difference...

cheekymole wrote: »

In response to "why not just pay" - why should he

Because he signed an annual contract and agreed to the terms and conditions of the contract, including those concerning cancellation.

noh

cheekymole wrote: »

It's about an extra £15 to cancel
In response to "why not just pay" - why should he, he's already paid the full premium which he isn't going to use so why pay extra to a greedy insurance company who will just press a button to cancel the policy (it's not a great hardship for them)

This seems to come up every day. Insurance companies have moved to more transparent pricing with fixed fees for various administrative functions such as cancellation policy changes etc. This means premiums are cheaper and people who actually cancel and make changes pay an explicit charge that will have been listed in the original agreement.
The premium must have been very low if you are only getting £20 refund for 6 months?

Nigel