Cancel Car Insurance but Still Need to Pay for it?

ed603em

Hi everyone,
I purchased car insurance last April. I paid for it on credit through Close Brothers. I have recently sold the car and tried to cancel the insurance. I have been told that I need to pay off the loan in full and so have just under £200 to pay in order to do this.

I am confused by this though - I understand that there are cancellation fees etc which I need to pay but should I be paying off the loan itself as well?

If so, who is that money going to - is it going to Close Brothers or to the insurer? Is there a way I can claim that back as I will be using the insurance due to no longer owning the vehicles.

I have gone through the documents sent to me by Close Brothers originally and can't see any clear references to this and how this process works. As I say, I'm okay with the principle of admin fees and other charges for me changing / cancelling the policy, but I'm not sure why I need to pay for insurance that I am not using.

Is anyone able to clear this up for me? I have tried calling the insurance company but they weren't very clear and in any case they use a Premium rate number so it costs a fortune just to listen to someone who doesn't really understand the issues either

Quentin

Write and dispute the bill if you don't understand where they get their figures from.


Ask them to itemise everything and then dispute any you don't agree with (you can safely pay the portions you do agree with (explain what any remittance you send them is in payment for) - which will stop them using debt collectors or any other enforcement measures, but clearly dispute any items you don't)

ed603em wrote: »

...... I will be using the insurance due to no longer owning the vehicles.......

Assuming no typo in your OP, if you intend getting a replacement car then find out how long they will give you to do this - insurers usually only allow a limited time to put a replacement on cover, and check with your insurer that they are happy to cover any replacement before you buy it

[Deleted User]

The insurance and the loan to pay for the insurance are two separate things. Close would have arranged the finance and the finance company have paid the insurance company in full. Who is your insurance company? Close aren't an insurance broker or insurer - they just provide finance.

You still owe the money regardless of cancellation of the policy - the insurance company themselves might refund some of the premium depending on what the fees are and how much of the policy is left to run.

mollygog

I paid £1565 upfront for car insurance, cancelled within the first month, No claims or anything,The t&c's says within a month you have to pay 25% plus admin which is £25 min, I have been charged £716! Is this extortionate or the norm, any advice welcome

Superscrooge

25% of £1565 +£25 should be £416 rather than £716 (£416.25 to be exact)
It might be worth getting them to check their figures?

mollygog

Thats exactly the figure I got, just spoke over me and said the other is admin fees! Its Right choice insurance brokers, but the actual insurance is supplied by a company in Gibralter which I didnt realise, so the Ombudsman said via phone call, that, this could be a problem to get any of the money back. So angry!

takman

mollygog wrote: »

Thats exactly the figure I got, just spoke over me and said the other is admin fees! Its Right choice insurance brokers, but the actual insurance is supplied by a company in Gibralter which I didnt realise, so the Ombudsman said via phone call, that, this could be a problem to get any of the money back. So angry!

If you have gone through an insurance brokers then the extra £300 could be the fee they get for setting up and managing the policy so you won't be getting that back.

mollygog

Hi Thanks for input. Surely they should mention that in the t&cs. Oh well, once bitten and all that.:eek:

keith1950

Also if you took out any extras like breakdown cover, keycare ,legal expenses etc.etc. these would not be refundable .

mollygog

Hi. Thanks for input, only extra was the legal expenses £39. Im gonna try complaining and the ombudsman route. Can only say, no joy