Car Insurance Change of Address Cancellation Fee

Gilbs

Hi All
I've recently changed address and the risk area has gone from 2 to 3 (1 is best 5 is worst). I'm with sky insurance for my car insurance and when I've gone to update this (expecting my policy cost to increase), they have said that my policy has to be cancelled because their underwriters won't cover it, and I therefore have to pay a cancellation fee of £50.
I accept that if I was to cancel the policy myself then I would have to pay the £50... however it isn't my fault that they can't cover me in that postcode area. Has anyone had this before or potentially know what my rights are here? Any help would be greatly appreciated!

dunstonh

Has anyone had this before or potentially know what my rights are here?

Your rights are what you are agreed to when you bought the policy.
I have been in a similar position when I changed a car. The existing insurer would not accept cars above a certain value and as they were cancelling it, they waived the cancellation charge.   However, that was their choice.    

Sandtree

Ultimately the choice is yours... your options are to move home and pay the cancellation fee or not move home and continue the rest of the policy as you agreed up front. Clearly option 2 is not going to be viable for you and so its a case of accepting it as a cost of moving. Insurers only agree to insure you based on what you say at quote time, there is no guarantee any changes you make mid term are going to be acceptable to them.

You can ultimately plead to their better nature and see if they will waive it or if they will waive it if you agree to buy a new 12 month policy from them (assuming one of their other panel of insurers will take on the address)