Car Insurance 14 day cooling off period

Stratto

Hi I just took out Car insurance the policy does not run out for 20 days. I had some issues with the company but that is not my question. This company has written in to the fees that should I cancel within the 14 day cooling off period I will be charged £30. All the information on-line says by law any insurance company is covered by a cooling off period 14 days for Car has coming out of brexit changed the law?

Stratto

Just an update as this is a mine field for me you do have a cooling off period but you can be charged

TELLIT01

The £30 will either be an admin fee, or a charge for the number of days the policy was actually active.  Cooling off period doesn't automatically mean there will be no cost involved.

Nearlyold

There is usually an admin charge for cancelling during the 14 day cooling off period. Nothing to do with Brexit it's always been the case since the introduction of the cooling off period. If it wasn't charged some folks might see it as a chance to get 14 days of free insurance.

tightauldgit

Certainly when it comes to cancelling a service the supplier has the right to charge you for the days that you have received that service up until the cancellation. I'd have to double check the law but I presume a reasonable admin charge is probably ok too to cover their costs.

DullGreyGuy

FS are not covered by normal consumer rights legislation.

As others have said, the law says there must be a right to cancel, it doesnt say it has to be fee free. Whilst it used to be 50/50 on if companies charged or not those that didnt charge found themselves subject to negative selection, people buying to be able to release a vehicle and then immediately cancelling or only holding it for a day or two and then cancelling as this was cheaper than short term insurance.

Not to be the ones paying large marketting/acquisition costs for very short policies most now charge a cancellation fee to discourage these behaviours.