Insurance broker cancellation charges

jla7171

Hi 
Anyone advise on rights to cancel through insurance brokers please
I paid £936 and inquired about cancelling within 24 hours was fobbed off again the next day was fobbed off until Monday and then told as its been more than 48 hours since taking out policy you are due £14 refund but we only issue refunds of over £15 so basically get nothing back

Sandtree

What does your policy state about cancellation?

Presumably this is motor insurance and not GAP or some other class?

jla7171

Van insurance and the charges are made by the broker I have not recieved any policy documentation
*   Cost of the policy from the underwriters: £4552.92
  *   Arrangement fee: £342.68
  *   Legal cover: £37.35
  *   Initial card payment: £936.65
  *   Amount spread over Direct Debit: £4100.85
  *   Cost of Matrix Nano: £104.40

When the policy was cancelled, the following was applied:


  *   A cancellation credit from Tradex of £4453.13
  *   The balance left to pay via the direct debits of £4100.82
  *   Loss of commission of £376.11
  *   A credit to cover the cost of the legal cover of £37.50.

This leaves a credit of £13.67.

As outlined in our terms of business, we will only refund a credit over £15, so balance left on your file will remain available to use should you wish 

born_again

So in effect you took out a loan to pay the insurance. Not pay the insurance in full.

Flight3287462

Also sounds like business insurance, if that is the case then consumer rights don't apply.

How did you take out the insurance?  Visit office, phone or online?

AdrianC

Saying "I paid £936" is misleading - that was a ~20% initial payment for a £4.5k business policy.

I presume you're also keeping the tracker that was included?

jla7171

Tracker was £140 happy to send it back but no refund on that so it will go in the bin 
The van insurance was taken out over the phone
The payment was indeed first upfront payment but you don't expect after finding you want to cancel within hours to forfeit the whole amount
The insurance company have charged in effect pennies 
The finance for insurance amount has cost zero to cancel in effect one sure has charged £936 to not act as my insurance broker as they are supposed to act in mu best interests not theirs

AdrianC

jla7171 said:

Tracker was £140 happy to send it back but no refund on that so it will go in the bin

Bin it if you really want. It's yours, after all. You've paid for it.

The van insurance was taken out over the phone
The payment was indeed first upfront payment but you don't expect after finding you want to cancel within hours to forfeit the whole amount

You're looking at it the wrong way...

You contracted to purchase a £4,550 insurance policy for a year, plus a £100 tracker, plus £37 legal cover, and to pay £340 to the broker to arrange that. You paid £950 upfront, and owed the remaining balance.

When you cancelled the policy, the insurer refunded £4,450 of the £4,550 premium.
You owed £4,100 on the finance.
The broker lost their £375 commission, which you were contracted to repay in the event of a cancellation.
The legal cover was refunded in full.

Should you pay the broker? Yes, they did the work you asked them to do. They found you the policy you wanted.

It's not their fault you changed your mind and had a massive attack of buyer's remorse immediately after taking the policy on.
The insurer only covered you for a short time, and refunded almost all of the premium.

This would all have been spelled out in the paperwork you had before you signed.

chrisw

For all this to have only cost you £14 seems remarkably cheap to me in the scheme of things.
I would accept it and move on.

AdrianC

chrisw said:

For all this to have only cost you £14 seems remarkably cheap to me in the scheme of things.
I would accept it and move on.

It hasn't even cost £14. That's on his account as credit for any future policies.

jla7171

It has cost me £936 
I didn't have buyers remorse the policy I asked for was not provided hence I was mis-sold and wanted to cancel