Principal insurance

vikilibrary

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?

dunstonh

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?

vikilibrary

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.