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Cooling off period
johnphilipleach
Posts: 1 Newbie
Hi , I recently allowed my car insurance to " auto renew " ( my fault completely , I forgot ) . On the day of renewal I saw the notification email and was horrified , £945. had been charged onto my credit card that morning .
The same level of cover was available from the RAC for £220. So I thought don't panic I can still cancel during the cooling off period .
So I contacted the company ( 1st Central ) via their web chat and was told that this was a " live policy " and was subject to a £50. cancellation charge even though it had only been in effect for 12 hours . I asked about a cooling off period and was met with the same response .
Due to the amount I had to agree to the charge in order to get £895. refunded . I am now insured with the RAC.
Is this legal , Thanks John
The same level of cover was available from the RAC for £220. So I thought don't panic I can still cancel during the cooling off period .
So I contacted the company ( 1st Central ) via their web chat and was told that this was a " live policy " and was subject to a £50. cancellation charge even though it had only been in effect for 12 hours . I asked about a cooling off period and was met with the same response .
Due to the amount I had to agree to the charge in order to get £895. refunded . I am now insured with the RAC.
Is this legal , Thanks John
0
Comments
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Yes. The right to cancel doesn't mean it's going to be for free. And they had provided you with cover, albeit for a very short period.1
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Is this legal ,Yes. It is a myth that the cancellation rights period is free. They can charge you their published cancellation/administration fee and pro-rata premium for the days on cover.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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