Principal insurance

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Hi

I took out a bike insurance through Prinicipal insurance but ended up selling the bike after 24 days since the cover started. I understand that I'm outside the 14 day period to cancel without charge. But when I contacted them they want to charge me £113 to cancel the policy and are saying that they will not refund any money from the unused policy which cost me around £270 (and only a month has been covered). This just does not seem right. Has someone had a similar problem and can advice please?

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  • dunstonh
    dunstonh Posts: 116,610 Forumite
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    I understand that I'm outside the 14 day period to cancel without charge.

    There is no 14 day free period in financial services. The 14 day period is a right to cancel but it does allow the provider/broker to charge for time on cover and administration.
    But when I contacted them they want to charge me £113 to cancel the policy and are saying that they will not refund any money from the unused policy which cost me around £270 (and only a month has been covered). This just does not seem right. Has someone had a similar problem and can advice please?

    What does their published terms state?
    These are often online but will also be in the paper documentation you received.

    I am confused by what you have paid. You say it cost you £270 but they want to charge you £113. Is that £113 on top of the £270. Or were you set to pay £270 on a monthly basis and havent actually paid them £270 yet?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • vikilibrary
    vikilibrary Posts: 2 Newbie
    edited 1 June 2017 at 2:55AM
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    Hi

    The terms state that the cancellation charge can be up to maximum of £75. The cover summary states that 75% premium should be refunded if cancelled within a month.

    I paid the full premium £270 for the year (because i did not plan to cancel) and they want £113 on top of that with no refund of premium. In the email confirming the cancellation they have not even mentioned the above amount they quoted on phone. Seems like a scam to be honest. Wonder if there are legal or press routes to take to deal with them.
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