Contents insurance dispute

MrFrugalFever

Brie said:

Why do you need to cancel the policy?  Won't you need to have insurance elsewhere??  A change of address would cost as well but it might be less.

As for the cancellation fee....are you saying that you have paid £XX for 12 months cover and cancelling after 6 months doesn't give you a partial refund?  Or have you claimed on it this year??  

Hi Brie,

I have reluctantly moved in with a family member temporarily so no longer required the insurance. My renewal was November last year and I went to cancel as of the first week of Feb but was requested to pay a cancellation fee plus a pro-rata for remaining days to be used.

No claims have been made, ever.

My frustration with them has been that I believe the cancellation fee is grossly disproportionate to the efforts required in cancelling the policy and as a % of the overall policy.

I am expecting it to go nowhere but because I don’t like them I’ve been arbitrary about it and filed a complaint with the FOS after receiving an official final response with their in-house complaints dept. I’m hoping they get charged £750 for the privilege.

jon81uk

If the cancellation fee was stated when you signed up then that would have been the time to consider if you feel its too high and shop around for a better deal. They are clearly listed Our Fees | Cancelling or Changing Your Policy | Hastings Direct.


I assume though you will get a pro-rata refund for the unused time on the policy, so by not cancelling you may have cost yourself more than £35 anyway. For example if its £240 a year for insurance, you took it out in November and cancelled in Feburary then you should get £160 back, less the £35 fee so £125. Cancel in April and you only get £120 less the fee so £85 back.

dunstonh

 I’m hoping they get charged £750 for the privilege.

Most of the big companies are not subject to the FOS fee.  They pay a fixed price each year irrespective of complaint count.