AA Cancellation Rip-Off

ladythron30

So after my insurance went up from £32 to £57 per month with the AA (no claims, no points, 27 years driving,16 years NCB) I found a cheaper competitor and decided to cancel my policy with the AA. I thought I had cancelled in April just before it was due however apparently not.
I called them yesterday to cancel but have been charged £107.30 to do so. Not only did I have to pay £30 cancellation fee (expected) but £28 ‘arrangement fee’ AND all the ‘add-ons’ I’d chosen for the policy such as Legal Cover, Courtesy Car etc. So whilst these things aren’t actually tangible and I won’t be using them, I get charged for them. I was kindly told it was in the ‘Ts and Cs’ but I’ve never had to pay such a high amount to cancel a policy if I’ve ever had to before.
In a time of increased living costs, it’s scandalous that these organisations can get away with these practices.

oldernonethewiser

ladythron30 said:

So after my insurance went up from £32 to £57 per month with the AA (no claims, no points, 27 years driving,16 years NCB) I found a cheaper competitor and decided to cancel my policy with the AA. I thought I had cancelled in April just before it was due however apparently not.
I called them yesterday to cancel but have been charged £107.30 to do so. Not only did I have to pay £30 cancellation fee (expected) but £28 ‘arrangement fee’ AND all the ‘add-ons’ I’d chosen for the policy such as Legal Cover, Courtesy Car etc. So whilst these things aren’t actually tangible and I won’t be using them, I get charged for them. I was kindly told it was in the ‘Ts and Cs’ but I’ve never had to pay such a high amount to cancel a policy if I’ve ever had to before.
In a time of increased living costs, it’s scandalous that these organisations can get away with these practices.

Was this because of something you failed to do or something the AA failed to do?

Fairly common charges for cancelling a policy that has already commenced.

Brie

You say you thought you cancelled it.  Do you have any proof anywhere?  Response to their email about renewal perhaps?  Or do you have anything that shows you didn't want automatic renewal?  Either of these would make the renewal an error on AA's part and that should entitle you to a full refund with no fees.  

CouldntResist

Presumably you've arranged to monthly pay for a policy that covers you annually ie you could ha pid for the  cover upfront and similarly not got refunded for it, you are just paying down part of the policy cost that was effectively lent to you.

Why would you expect there to be zero cost in cancelling the add-ons, they won't have been free to arrange on the insurers side?

What would your response have been if you wanted to claim offan add-on and they told you you could only have part of it because you hadn't paid all the installments yet?

Does a Cost Of Living Crisis suspend all contract T&Cs, and at what point does that end?

Brie

CouldntResist said:

Presumably you've arranged to monthly pay for a policy that covers you annually? Why would you expect there to be zero cost in cancelling so the add-ons? What would your response have been if you wanted to claim an add-on and they told you you could only have part of it because you hadn't paid all the installments yet?

And I wonder what would happen if in 3 months time OP decides to use one of those fully paid up add ons?

CouldntResist

I would imagine they be told they have cancelled their policy and are not covered. Per the T&Cs

BarelySentientAI

CouldntResist said:

Does a Cost Of Living Crisis suspend all contract T&Cs, and at what point does that end?

It's amazing how many people think "cost of living crisis" somehow means companies should be forced to make price reductions, not charge anyone who feels a little less well off than they used to, and even just give stuff out for free.

Brie said:

You say you thought you cancelled it.  Do you have any proof anywhere?  Response to their email about renewal perhaps?  Or do you have anything that shows you didn't want automatic renewal?  Either of these would make the renewal an error on AA's part and that should entitle you to a full refund with no fees.  

Exactly this.  If you have proof that you cancelled the renewal and they processed it by mistake, kick up a fuss because you deserve a full refund.

If you just thought you meant to cancel it, well that's not their fault and shouting about cost of living doesn't make it so.

dunstonh

I called them yesterday to cancel but have been charged £107.30 to do so. Not only did I have to pay £30 cancellation fee (expected) but £28 ‘arrangement fee’ AND all the ‘add-ons’ I’d chosen for the policy such as Legal Cover, Courtesy Car etc.

The add-ons are annual contracts without the ability to cancel mid term.  That is normal across the board and not specific to the AA.   The add-ons are for you and not policy specific.

 So whilst these things aren’t actually tangible and I won’t be using them, I get charged for them. 

If you were never going to use the add-ons then why did you select them in the first place.

 I was kindly told it was in the ‘Ts and Cs’ but I’ve never had to pay such a high amount to cancel a policy if I’ve ever had to before.

The amounts you have mentioned are not high.   £30 cancellation charge is in the ballpark and pretty middling.   The arrangement fee are usually in place where the broker is not taking a commission.  i.e. every policy has a £28 fee as part of the premium instead of having a percentage based commission amount factored in.

Arrangement fees are usually non refundable as they are covering the initial work.

In a time of increased living costs, it’s scandalous that these organisations can get away with these practices.

Nothing you have said is scandalous.

If you told them in advance of renewal that you didn't want it, then none of these would apply.  Once the policy renews you have effectively agreed to them.

TELLIT01

There would be a cost for the period of time the insurance policy was active.  Fees for the 'add ons' may have been passed to 3rd parties when the policy was taken out.

In a time of increased living costs it's also sensible for those using a service to ensure they actually do cancel if they intend to.

sheramber

Increased cost of living affects business the same as it affects you and me.

Their  utilise costs are up, their staff costs are up due to wage rises, their purchases are more extensive.