Car insurance cancellation fee

bhamoggy

Sold my car today, not buying another one. Monthly insurance direct debit taken out yesterday. So phone Hastings Direct up to tell them I no longer need insurance and they said fine but there’s a cancellation fee of £46. 

Can I just not pay this?

Car_54

You will almost certainly find that the fee is included in the Ts and Cs which you agreed to when you took out the policy. In which case, no you cannot legally not pay. But do check your paperwork.

It's an unfortunate fact that most people buy insurance on price, and so companies like Hastings quote low headline premiums, but impose heavy charges for cancellations and changes.

jimjames

bhamoggy said:

Can I just not pay this?

You might be able to notify that car is sold and to retain policy but that will mean paying each month. Depends if £49 is cheaper than the remaining DD.