Admiral charging £25 before 14 day cool off period

ldsanderson

My daughter recently took out contents insurance with Admiral for her new rented flat. On review, on the same day she changed her mind due to exit fees from her existing policy. Admiral say she has to pay a £25 exit fee for the policy taken out on the same day (i.e. Changed her mind in a few hours). For me, this must go against the CRA's regulatory 14 day cool off period. Any thoughts?

Aretnap

The 14 day period gives her a right to cancel. It doesn't give her a right to cancel at no cost. The insurer is still allowed to charge a reasonable fee to reflect the costs of setting up the policy, and subsequently cancelling it, plus any time on cover. 

The difference the 14 day period makes is that after the 14 days have expired you have no statutory right to cancel at all, though most insurers will still allow you to cancel, possibly on more onerous terms. 

dunstonh

 For me, this must go against the CRA's regulatory 14 day cool off period. Any thoughts?

It is allowed to charge an admin/cancellation charge after application but before the end of the cancellation rights period.

The cancellation rights period is not a free period.