Beware BUDGET insurance refund policy

Insuranceripoffs

Beware BUDGET (BISL) insurance refund policyOkay it was only a small value car insurance policy of £155refunding after 5 months=-60%£155-%60= £62.32Then there is administration charge -£55 = £7.32.Then because less than £10 they don't bother paying you...Details on certificate are as follows:RefundsWe will pay any refund due to the bank account or credit/debit card we hold on file. Refunds will only be made if we receive the certificate(s) of insurance within 30 days. The minimum amount we will refund £10, any refund less than £10 will not be given.If you cancel your policyIf you cancel within 14 days of receivingyour policy documents you will have to pay a cancellation fee of £20 and for time on cover unless you have made a total loss daim in which case all outstanding payments will become due and no refund will be given.If you cancel after this time, we will charge a cancellation fee of £55. We may alsocharge a percentage of the total cost of cover, depending on when you cancel.If you cancel while a daim is outstanding you will have to pay all outstanding payments due before the claim can be settled If you cancel after a claim has been settled you will have to pay all outstanding payments due. In either case no refund will be given.If You Cancel within... %charged If You cancel within.. %Charged1 month 20% 6 months 70%2 months 30% 7 months 80%3 months 40% 8 months 90%4 months 50% 9 months onwards 100%5 months 60%If you cancel the additional products taken out with this policy, but not the main policy within 14 days of receiving our policy documentation, you will pay for time on cover only. After this time, no refund will be given. If you cancel the main policy then any additional products taken Out will also be cancelled and no refund will be given for these products.If we cancel your policy the same fees and charges will apply. Please see also the section on ‘Cancelling this insurance’ contained in the General Policy Terms.Just for your info!!!!

lisyloo

My Advice:

Read all contracts BEFORE you sign up.
If you don't like them, then vote with your feet.

People who cannot be bothered to read the details up front need not apply for sympathy.

mattymoo

It is clearly stated in plain english on their website.
http://www.budgetinsurance.com/car_information/more_cancellation.asp?SRC=B139

Insuranceripoffs

Ok, point taken... but
assuming I bought this insurance over the phone (old fashioned I know).

Also I didn't get the full detail until the policy actually arrived.

I didn't expect at the time to be selling my car mid insurance term.

I didn't use the 'refund policy' in making my decision as to which insurer I should use...

I've learnt my lesson, but surely the administration fee is excessive AND surely there is an element of profit already included in their % per month factoring!!??

A warning to other mere mortals who haven't the time to read and digest every hook line and sinker that the Insurers seem to have to rely upon to make their money.

Thanks for responding.

iceicebaby

Those terms and conditions are certainly quite standard to be honest.

raskazz

Insuranceripoffs wrote: »

Also I didn't get the full detail until the policy actually arrived.

This is why the 14 day 'cooling off' period applies for 14 days after the date you receive the full policy wording, if this later then the date from which cover is effective.

Standard terms really, certainly in relation to the short-period percentages.

lisyloo

Hello,

assuming I bought this insurance over the phone (old fashioned I know).

You could go to the website where often they have full details that you can download and read BEFORE committing yourself.

Also I didn't get the full detail until the policy actually arrived.

If you don't have a computer or have some other reason for not being able to do that then you have 14 days to read the documents and decide.

I didn't expect at the time to be selling my car mid insurance term.

Fully appreciate that we don't have a crystal ball but
1) This costs money so someone should pay and now it's YOU and not the insurer. That seems fair to me. It's still YOUR cirucmstances that have changed and not theirs.
2) The admin costs will not be included in your up front premium, so you may not have realised it but it has reduced your premium. It's a bit like airlines increasing fees for people that take baggage but ALSO reducing them for people that don't take baggage. It may just look like an addition but there was also a corresponding reduction. Many people this this allocation is fairer. If they didn't do it this way we would all still have to pay it would jsut be distributed different. They still would NOT work for free.

I didn't use the 'refund policy' in making my decision as to which insurer I should use...

I would agree that it's always a trade off and to me the refund policy is a minor issue.
But for those for whom it's a huge MAJOR issue then they SHOULD include it in their decision making.

I've learnt my lesson, but surely the administration fee is excessive AND surely there is an element of profit already included in their % per month factoring!!??

I would disagree in most cases.
Don't forget this has to include staff taxes, pensions, training, managers salaries, rent, phones, building maintenance, computer hardware, software.
I'm not an accountant but I reckon I could amke a case for it mathematically.
If you really object then go down the complaints route.
There's always a chance you'll get a refund on a "goodwill" basis.
Probably more productive (for you) than spending time here.

A warning to other mere mortals who haven't the time to read and digest every hook line and sinker that the Insurers seem to have to rely upon to make their money.

Well yes....thanks for making people aware. It's a useful function of hese boards.

However people SHOULD read the main headlines and the main "fees and charges". A lot has been done to make this easier.
Legally there is always now a "summary of fees and charges box" to make it easier for people rather than read 300 pages of small print.
I NEVER read the whole document but I don't find it difficult to spend 10 minutes identiftying the important bits.
Recent legislation has made this easier as they can't hide it away in small print anymore.

olly300

If You cancel within.. %Charged1 month 20% 6 months 70%2 months 30% 7 months 80%3 months 40% 8 months 90%4 months 50% 9 months onwards 100%5 months 60%I

The only issue you could have to complain about is the percentage charge and enquire why it is calculated like that as it is unfair. However you would need to follow the complaints procedure to the letter and make sure you complaint is recorded in writing.

See here:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm