Policy cancellation fees vs pro-rata refund

MadMom

I'd like to know what a fair and legal amount is for an insurer to hold on to upon cancellation partway through the policy year.  I paid £160 (annual premium paid upfront) for a policy taken out in July and have now sold the vehicle. That means (rounded up) I would've had cover for 4 months (Jul, Aug Sep, Oct = less than £60) and should receive a pro-rata refund for 8 months less an "admin fee". They (Peacock Insurance) have advised me: £115.16 for the time on cover, with a refund due of only £44.97  This is nothing short of extortion.  They've told me they are entitled to keep the commission etc and their numbers are final.  Is this legal? Or are they just taking the P*?   This is for a touring caravan if it makes any difference.

400ixl

What does the policy you signed up to say as far as refunds go?

DullGreyGuy

MadMom said:

I'd like to know what a fair and legal amount is for an insurer to hold on to upon cancellation partway through the policy year.  I paid £160 (annual premium paid upfront) for a policy taken out in July and have now sold the vehicle. That means (rounded up) I would've had cover for 4 months (Jul, Aug Sep, Oct = less than £60) and should receive a pro-rata refund for 8 months less an "admin fee". They (Peacock Insurance) have advised me: £115.16 for the time on cover, with a refund due of only £44.97  This is nothing short of extortion.  They've told me they are entitled to keep the commission etc and their numbers are final.  Is this legal? Or are they just taking the P*?   This is for a touring caravan if it makes any difference.

As them to break it down

£160 minus your £60 for time on cover would be £100. Admin fees are often circa £50 and so that would put the refund at £50 which isnt massively far off from the £45 they've offered

MadMom

400ixl said:

What does the policy you signed up to say as far as refunds go?

Say what?? You mean I should read the fine print?? 

MadMom

DullGreyGuy said:

£160 minus your £60 for time on cover would be £100. Admin fees are often circa £50 and so that would put the refund at £50 which isnt massively far off from the £45 they've offered

I suppose when you break it down like that it's not actually that big a difference - it just feels shocking.  I didn't originally mention that their admin fee is £35 so the difference must be the commission.  It makes more sense with this breakdown, thank you for acknowledging my "vent"