Tesco insurance- rip off

Martinuniterep

Yesterday I called Tesco insurance to cancel my policy after selling my car. They said that would cost £39. I only have one more direct debit payment of £23.50 before my renewal.  I said I won t cancel then and just pay the £23.50 direct debit. They said I can’t do that and would need to pay £39 cancellation fee. I hung up the call. 

Please could you tell me where I stand with this? 

Phoenix72

What does the T&C's (the ones you said you agree to) when taking out the insurance say about cancellation and fees?

You can't insure a car you no longer own.

Aylesbury_Duck

Martinuniterep said:

Yesterday I called Tesco insurance to cancel my policy after selling my car. They said that would cost £39. I only have one more direct debit payment of £23.50 before my renewal.  I said I won t cancel then and just pay the £23.50 direct debit. They said I can’t do that and would need to pay £39 cancellation fee. I hung up the call. 

Please could you tell me where I stand with this? 

Check the policy terms and conditions.  It's almost certainly all covered in there.  It's not a rip-off if the early cancellation fee is in the policy terms you agreed to, and it's almost certainly an obligation to tell them if you dispose of the car, otherwise they're insuring a car you no longer own or are driving, isn't stored at the same address, etc.

On the basis that I've made correct assumptions, you owe them £39 unless you can sweet-talk them otherwise, perhaps by using them to insure your next car (if you are replacing the sold vehicle).  Hanging up in a huff wasn't a promising start.

Arunmor

If you left your insurance running your insurer could potentially be held liable if there was an accident (ie new owner crashes without their own policy in place).  They could come after you to make good any costs and liabilities they have incurred.  

DullGreyGuy

Martinuniterep said:

Yesterday I called Tesco insurance to cancel my policy after selling my car. They said that would cost £39. I only have one more direct debit payment of £23.50 before my renewal.  I said I won t cancel then and just pay the £23.50 direct debit. They said I can’t do that and would need to pay £39 cancellation fee. I hung up the call. 

Please could you tell me where I stand with this? 

With your insurance still running on the car but people not named on the policy being allowed to drive it by you then they remain the RTA insurer.

As RTA insurer they are required to settle any third party claim presented to them in the absence of a more appropriate insurance. If they settle the claim they are entitled to demand the money from you in repayment. If it involves injury then you cannot even avoid it by going bankrupt. 

There was a poster on here last year that was having to repay £50,000 for doing what you are proposing and back in my claims day we had someone repaying us a six figure sum with a charge against their home too. 

They could also decide to void your policy which you then have to declare for life

PHK

Just to clarify, it’s completely normal to have a cancellation fee and the amount doesn’t seem reasonable. 

sheramber

Read your policy document. It will be detailed in there.