Car insurance set up fee

ffswisstony

Hi.

I signed up to a new car insurance 21 days early to get the best deal. I have now sold my car and the deal starts in 5 days. I've just called to cancel before my insurance starts and have been charged a £20 set up fee. Does anyone have any opinions on this please?
Thank you

Thrugelmir

Covers the admin cost of arranging the policy.  Not the insurers issue you've now decided to cancel. 

Alderbank

Your life sounds a little disorganised.

'...to get the best deal' means of course not just the price of the premiums but what extras the policy includes, what excesses you pay, how they manage claims and the various fees and charges. All policies charge cancellation fees, some much more than £20. What do their terms and conditions say?

Sandtree

ffswisstony said:

Hi.

I signed up to a new car insurance 21 days early to get the best deal. I have now sold my car and the deal starts in 5 days. I've just called to cancel before my insurance starts and have been charged a £20 set up fee. Does anyone have any opinions on this please?
Thank you

The law gives you the right to cancel the insurance, it doesnt say that cancellation has to be fee free. 

£20 in acquisition costs and administration is peanuts and so its a relatively lucky escape if you havent been thinking ahead about your plans and considering these types of fees if there is a chance of needing to exit the insurance early. 

ffswisstony

Thank you for the replies