Is this fraud? Cancelling Insurance

kapp

OK, so I've been assured by you guys I can ring up and say I've pass and want to close the account.

So more reading:

I've found in one of the documents they sent me, they also attached a link to ANOTHER policy document im under.

I've found this about cancelling:

You or your Insurance Intermediary can cancel
this policy either from the date we are notified,
in writing, or a later date as requested by you.
Providing there have been no claims in the
current period of insurance we will refund
the premium relating to the remaining period
of insurance calculated on a proportionate basis
dependent on the number of days left to run
under the policy less an administration fee
of no more than £50 plus Insurance Premium
Tax if applicable to take into account our costs
in providing your policy.

So to me, napkin math again, this is what's going to happen. I've paid 400 for the year, and ask to cancel before the 3rd month commences. 100 of that 400 is the non refundable amount to setup the account, and they will charge me up to 50 to cancel the account. So. "400-100=300".... ""300/12" *10 = 250", and they will charge 50 to close the account, therefore now "200". somewhere in there they will charge me 12% insurance tax, which depending where they calculate that will be somewhere around
24 to 48 pounds.

So on tuesday I will ring them up and as for a quote to cancel at the end of the month. I believe I should expect to receive somewhere in the region of 150-180 pounds back for the remaining year - Which I would be happy about.

Cheers for your replies so far, very helpful. Keep them coming if you think they're relevant.

All the best.

Carrot007

kapp wrote: »

Can I assume its linear. If I have 10 months left on the policy, will they give me 10/12th of the policy back (minus the 150)?

Never. Setting up the policy is the part that costs the most in admin so assume that say 20 % of it is never going to be refunded and even after that the refund will be non linear.

Alter_ego

A lot of companies charge "short term rates" in these circumstances. Don't go there!

sheramber

Why tell your current company that you have passed your test when you phone to cancel.

Just say you want to cancel . No need to give a reason.

stator

Yes, don't tell them you've passed. Just say you want to cancel immediately. You don't need to give a reason. Just get it cancelled. IF they ask, just refuse to talk about it and ask for it to be cancelled again.