Car insurance cancelation policy

Ad_Astra

My car insurance is with Churchill, my policy states a £53 fee if I cancel my policy. I am looking to switch providers at renewal time, so my query is if I do not renew is that considered a cancelation and they will charge me the £53?

Ayr_Rage

There will not be a charge if the policy ends on its expiry date.

Do make sure it does not automatically renew.

400ixl

No, if the policy reaches its full term then you are free to go elsewhere penalty free as you are not cancelling anything. You just need to check it is not set to auto renew. Tell them to not auto renew if it set to do that. Again, that is not cancelling the policy, it is cancelling a renewal and the creation of a new policy.

It is only if you cancel mid term that they can charge any contracted exit fees.

Ad_Astra

Sounds good although it is on auto new. There is a fee of £26.88 for any policy changes. Can I request not to auto renew and avoid this charge?

DullGreyGuy

Ad_Astra said:

Sounds good although it is on auto new. There is a fee of £26.88 for any policy changes. Can I request not to auto renew and avoid this charge?

Best practice is to do your shopping around, get your auto renewal quote from Churchill and assuming you still wish to leave then contact Churchill to decline the renewal quote and that you want the policy to lapse at the end of this policy year. 

This isn't a cancellation so no cancellation fee, it's not an amendment so no amendment fee. Also avoids the risk of you forgetting about it because of some life event that happens next week and so you don't end up driving uninsured. 

lisyloo

make sure you use the work lapse
There are no charges for not renewing (lapsing) it's not a modification or a cancellation.
If you say you want to cancel you may confuse matters.

Ad_Astra

Many thanks all. I will use the wording Lapse when it is time to renew. 

DullGreyGuy

Ad_Astra said:

Many thanks all. I will use the wording Lapse when it is time to renew. 

Technically you either want to lapse this policy or decline/cancel the renewal quote.

Where people can get unstuck is talking about cancelling this policy but agents know the language the average person uses and its only in the odd occasion where it goes pear shaped... eg you think your policy ends on the 28th but it actually ends on the 1st and so you call and say you want to cancel it from the 28th, agent asks if you are sure, being just 2 days from the end, you say yes and so they process the cancellation and charge the fee. If both agent and customer listen it shouldn't happen often. Naturally it will happen occasionally and so it becomes another big urban myth about how bad insurers are etc. 

user1977

Ad_Astra said:

Many thanks all. I will use the wording Lapse when it is time to renew. 

You don't really need to use any wording, you just don't renew it with them.

wongataa

Ad_Astra said:

Many thanks all. I will use the wording Lapse when it is time to renew. 

Don't over think it.  The renewal documentation from your current insurer with the renewal quote will tell you what to do if you don't want to renew with them.  You just contact them and tell them don't want to renew the policy.  No need for specific words.