Car insurance cancellation fee

Rhiananders

Arranged a new policy 3 weeks before renewal due only for the car to fail its MOT. Policy cancelled before it is even in operation and One Call want a £50 cancellation fee. Is this fair? I find it desperately unfair of course but I wondered what others views are? All documentation was sent by email so there's no printing or postage costs etc. etc.

Inner_Zone

Rhiananders wrote: »

Arranged a new policy 3 weeks before renewal due only for the car to fail its MOT. Policy cancelled before it is even in operation and One Call want a £50 cancellation fee. Is this fair? I find it desperately unfair of course but I wondered what others views are? All documentation was sent by email so there's no printing or postage costs etc. etc.

So what does is say? You would have agreed to what ever it states.

AdrianC

That £50 cancellation fee is part of the financial decision you made on whether to repair or scrap that car. Would the insurer not change the policy to the replacement car?

elsien

They are an intermediary company so they have some work in setting up your policy with the relevant insurer.
It is stated in their terms and conditions under the charges section.

"We reserve the right to charge to cover the cost of setting up your policy where your cover is cancelled within the cooling off period - £35.99 for renewals and £49.99 for new business policies. This period is effective from when you accept your application to buy the insurance policy."