Cancelled policy, exorbitant charges?

Mike2609

Hi, 
I took out a new car insurance policy on 23/05, with my current policy due to end 23/06. I intended to have the policy start in June but accidentally submitted it with a start date a month premature. I realised what I'd done 24 hours later and contacted the company via live chat to have it cancelled and refunded. They told me that someone would call at midday the next day (they didn't) to deal with it. Two days later I called them back and again stated I needed to cancel the policy because I'd made a mistake and already had existing cover elsewhere. After a while of telling me I was going to be charged £65 to cancel, the person on the phone spoke to a senior colleague who informed them that if I provided proof of existing cover, I'd be refunded in full with no penalty. I sent my current insurance details to them along with my renewal letter and they told me that they would be in touch.

Almost a week passed and I heard nothing, so I contacted them again yesterday. I was told they were still waiting for my proof of cover (the first person confirmed she'd received this during our phone call) so I sent it again and explained that I required a full refund as I wasn't ever in need of the policy. I was told that my proof of cover would be sent to the underwriters and they would make the decision and be in touch. Today I have received a refund that is £70 less than the £235 I paid for the policy.

They told me I may have to pay an admin fee of £49.99 to cancel, but how on earth have they charged me an additional £20 for less than two weeks cover when pro rata it would be around a fiver? 
My intention is to now write a letter to their complaints department outlining again the specifics of my issue, before referring it to the ombudsman to try and claim something back. 

Do I have a leg to stand on, and before anyone says it, I accept it was my mistake. My issue is that I was told IF I proved existing cover, I wouldn't be penalised for cancelling.

Thanks.

dacouch

They can only raise admin fees that were outlined in the Terms of Business and only if these were given to you at point of sale or outlined