Car insurance refund after cancelling policy

cw8825

check the cancellation terms in the policy book
not all insurers calculate refunds on a pro rata basis
some will use a percentage

see below from XS direct

Cancellation Period % of Premium we will refund

Up to 14 days on cover Pro-rata Refund

15 days up to 1 month on cover 75%

Up to 2 months on cover 60%

Up to 3 months on cover 50%

Up to 4 months on cover 35%

Up to 6 months on cover 25%

Up to 8 months on cover 10%

Over 8 months on cover 0%

Doing some quick sums based on this  it does seem about right that OP got £128
Premium £330
£60% refund £198
Admin fee £45
leaves £153
if there is a broker cancellation fee of £25
that comes to the £128

sheramber

lisyloo said:

saajan_12 said:

400ixl said:

What does the contract you agreed to say about mid term cancellations?

If it was bought through a broker then you often have broker cancellation / admin fees, then the insurer cancellation / admin fees and then the reduction for use.

For example 2 months use £66 + £45 cancellation fee = £101 then you may have an admin fee of say £30 from the broker and £25 from the insurer which would give you £156

All guess work, but your policy documents will tell you.

As the fees are a fixed rate it can easily get to the number you are talking. 

OP said the £45 cancellation fee was being added to the £156 usage, so including it in the calc for the £156 would be double counting. 

I too read this as the cost of the insurance and not the fees.
I think the OP is entitled to an explanation for how it was calculated.
I've always had policies pro-rated due to length of time, but this says usage, so the next step is to get an explanation for the calculation.

The OP updated at 8.55am

sheramber

cw8825 said:

check the cancellation terms in the policy book
not all insurers calculate refunds on a pro rata basis
some will use a percentage

see below from XS direct

Cancellation Period % of Premium we will refund

Up to 14 days on cover Pro-rata Refund

15 days up to 1 month on cover 75%

Up to 2 months on cover 60%

Up to 3 months on cover 50%

Up to 4 months on cover 35%

Up to 6 months on cover 25%

Up to 8 months on cover 10%

Over 8 months on cover 0%

Doing some quick sums based on this  it does seem about right that OP got £128
Premium £330
£60% refund £198
Admin fee £45
leaves £153
if there is a broker cancellation fee of £25
that comes to the £128

See OP's update at 8.55am