Cancelling short term european breakdown cover

gordonlyle

Hi all,

I took out a short term breakdown policy with the RAC for a 10 day trip to the alps. I realised a few days after that I already had European cover on my motor insurance policy so cancelled it well within the 14 day cooling off period that I thought I had. The RAC have stated that no refund shall be given as its in their terms that policies of less than 28 days are not eligible for refunds. 

It states:

As European Breakdown Cover is an Insurance Policy, it is not subject to Distance Selling regulations but instead the Financial Conduct Authority and Prudential Regulation Authority.

The terms & conditions your policy has been cancelled under can be found on page 22 of the policy booklet:   "If your policy lasts for less than 28 days you can cancel your policy at any time, but you won't be refunded. Even if you cancel before the start of your trip."

Is this correct? ChatGPT in its infinite wisdom has helped a little however I am never reliant on AI for legal support as it gets a lot of things wrong.

Thanks in advance

pramsay13

I'm not sure that I would rely on random strangers on the internet any more than ai. 

DullGreyGuy

gordonlyle said:

Hi all,

I took out a short term breakdown policy with the RAC for a 10 day trip to the alps. I realised a few days after that I already had European cover on my motor insurance policy so cancelled it well within the 14 day cooling off period that I thought I had. The RAC have stated that no refund shall be given as its in their terms that policies of less than 28 days are not eligible for refunds. 

It states:

As European Breakdown Cover is an Insurance Policy, it is not subject to Distance Selling regulations but instead the Financial Conduct Authority and Prudential Regulation Authority.

The terms & conditions your policy has been cancelled under can be found on page 22 of the policy booklet:   "If your policy lasts for less than 28 days you can cancel your policy at any time, but you won't be refunded. Even if you cancel before the start of your trip."

Is this correct? ChatGPT in its infinite wisdom has helped a little however I am never reliant on AI for legal support as it gets a lot of things wrong.

Thanks in advance

Are you sure the European cover on your Motor insurance extends to the Breakdown cover? Legally all UK motor insurance must include the equivalent of TPO insurance across Europe however that doesnt extend to breakdown. 

With insurance you have a 14 day cancellation period however unlike physical products etc there is no legal requirement for the cancellation to be fee free. There are carveouts though to the cooling off period, you can see them in full at https://www.handbook.fca.org.uk/handbook/ICOBS/7/1.htm in which 7.3.1R.1 states that a policy of less than 1 months duration doesnt have to have a cooling off period.