GoSkippy Car insurance cancellation, challenge high broker fees

decadent_doe

Hi all,

Just cancelled my car insurance mid term as I've found a cheaper deal elsewhere. Go skippy claimed on their website it would be a £75 fee to do so. Now that I've cancelled it though they've partially refunded me what was left to pay on the credit agreement they're charging a nearly £200 pound broker fee. Is that something I can challenge/cancell or am I out of luck here?

born_again

If it was on a credit agreement then no.
You take out a loan, they pay the ins co upfront.

How long ago did you take it out?

decadent_doe

It was 3 ish months ago so past their 14/28 day cooling off periods. !!!!!!... ah well thanks for letting me know.

DullGreyGuy

decadent_doe said:

Hi all,

Just cancelled my car insurance mid term as I've found a cheaper deal elsewhere. Go skippy claimed on their website it would be a £75 fee to do so. Now that I've cancelled it though they've partially refunded me what was left to pay on the credit agreement they're charging a nearly £200 pound broker fee. Is that something I can challenge/cancell or am I out of luck here?

Their terms of business you agreed to is a £75 cancellation fee plus policy arrangement fee and various add ons have to be paid for in full. 

Personally, dont keep shopping around after you've bought otherwise you'll be switching insurers, paying fees, getting a bad record everywhere. If you are going to do it then make sure you know the full cost of cancelling before committing to the new policy else any saving may be wiped out with fees

campbrr

I have just sold my car which was insured through GoSkippy and have been horrified with their cancellation charge.

My policy which was taken out on 5th August, 2024 cost £266.83. Quite competitive.

Now, three months later, they say I owe £133.40. This incudes their own cancellation fee (£75).

Also in this charge is £183.23 for "Outstanding amount on Finance Agreement."

Is there someone I can approach to contest this. I know that the 'small print' will be written by solicitors but are there overriding laws for this?

DullGreyGuy

So you took out a loan on the £266.83, early settlement will have a cost like any other loan. 

The FSA, as the predecessor of the FCA/PRA, did a deep dive on cancellation fees in the early 2000s. Circa 20 years ago they felt that up to £50 was a reasonable sum for any insurer and it could be higher, if you indexed that value it would be almost £90 today and so proportionally £75 doesn't sound that bad. 

Like anything, you have the right to complain and if you dont like their response you have the right to take it to the Ombudsman. 

There are no specific overriding laws, legally you have no right to cancel at all after the cooling off period so technically they are going further than they have to by allowing you to cancel at all. In practice Motor insurers do allow cancellation of the main policy however often the optional extras cannot be cancelled. There will always be general law about unfair contracts but hence why the FSA looked into what actual losses a company suffers when a policy is terminated early. 

dunstonh

I have just sold my car which was insured through GoSkippy and have been horrified with their cancellation charge.
Now, three months later, they say I owe £133.40. This incudes their own cancellation fee (£75).

The cancellation charge doesnt seem horrific at £75.  Its the typical ballpark range.

The premium due will be the difference between where you are with your loan (for doing monthly payments) and the actual premium due to the cancellation point. 

Is there someone I can approach to contest this. I know that the 'small print' will be written by solicitors but are there overriding laws for this?

what wrongdoing do you think is happening as its not clear from your post what your issue is and what you have said so far indicates no wrongdoing.

cw8825

campbrr said:

I have just sold my car which was insured through GoSkippy and have been horrified with their cancellation charge.

My policy which was taken out on 5th August, 2024 cost £266.83. Quite competitive.

Now, three months later, they say I owe £133.40. This incudes their own cancellation fee (£75).

Also in this charge is £183.23 for "Outstanding amount on Finance Agreement."

Is there someone I can approach to contest this. I know that the 'small print' will be written by solicitors but are there overriding laws for this?

This will tend to happen with a small premium that is being paid monthly,
The insurers & brokers cancellation fees alone are going to take up around £75-£100