Need advice on cancelled motor insurance

kelpbeds

Hi

I went to cancel my car insurance policy pretty much mid term (it was pay monthly around £45 per month) and they wanted £120 to cancel. I told them this was ridiculous.
They suggested I didn't cancel and keep the policy open and use it on the new car I would buy (this was 2 months later - I told them it would be sometime and not immediately) When I rang them to change details (the car I bought was lower insurance class than the old one) they bumped up the premium hugely by something like £250.. I told them to forget it and cancelled.
They are now chasing me for the £120. I feel this is very unreasonable and I have been misled by them telling me to keep the policy open and then trying to bump the premium up.
What recourse do I have here?
Many thanks

Buzby

If you kept the policy open with no changes, there would be no excess to pay. As your circumstances changed, then it is a new policy. But you forget your insurance was an annual one - paying monthly doesn’t equal the cost of having it as commissions to third parties are all paid from it. Additionally, if you cancel early you lose the right to claim a further years NCD st your next renewal.

Finally, many firms do not extend credit - a third party does. Your insurer is paid in full by the credit supplier, and you pay a fee to them for paying in instalments. The type of arrangement you agreed to may stipulate what happens when you terminate early. Look at this to ensure you they comply.

I know of many who simply remove the vehicle under cover, (to prevent liability) and benefit from the NCD hike on the anniversary.

ConMan

Make a complaint.

kelpbeds

thanks for the replies. I have complained and they have referred it to a claim company.

So are you saying I have got no chance? Isn't £120 rather steep for cancelling insurance?

radoslaff

kelpbeds wrote: »

thanks for the replies. I have complained and they have referred it to a claim company.

So are you saying I have got no chance? Isn't £120 rather steep for cancelling insurance?

It's not if it's stated in their T&Cs that you have certainly read before signing up for the policy.

Hasbeen

kelpbeds wrote: »

thanks for the replies. I have complained and they have referred it to a claim company.

So are you saying I have got no chance? Isn't £120 rather steep for cancelling insurance?

You had a contract which you agreed to so I would say no chance and £120 is due to the fact you paid monthly they paid all total? You then decided to go for a higher risk car so they put premium up by £250 less the cancellation of £120 would be £130? So you would have paid £130 more, now because of your actions you owe £120. But if it has been referred to claim company then wait and see? Learn in future.