Cancellation Fee for a policy I didn't renew (Admiral)

TheSeeker44

Hi everyone

I've recently switched car insurance from Admiral to LV. I didn't make any attempt to contact Admiral about this and I'm assuming the policy just renewed automatically.

Now they're asking for £115 - is there anything legally I can in order to not pay this? I already hate insurance companies so the idea of giving them a penny more than I need to is deeply frustrating.

Any help would be greatly appreciated

DullGreyGuy

TheSeeker44 said:

Hi everyone

I've recently switched car insurance from Admiral to LV. I didn't make any attempt to contact Admiral about this and I'm assuming the policy just renewed automatically.

Now they're asking for £115 - is there anything legally I can in order to not pay this? I already hate insurance companies so the idea of giving them a penny more than I need to is deeply frustrating.

Any help would be greatly appreciated

So you received an email/letter advising you that if you do nothing the policy will renew and so you did nothing but now think it's the insurance company's fault that you have cancellation charges to pay? 

At the end of the day speak to Admiral, admit you made a mistake and advise them you bought cover elsewhere. If you are contrite enough they may consider reducing the bill for your mistake. If you go in saying you hate them then you will be paying the full price. 

TheSeeker44

Well, I just called them up and got it cancelled, presumably because there was no legal grounds on which they could do that. I can't imagine an insurance company not capitalising on an opportunity to shaft the consumer.

Thanks for the advice, although it could have been delivered in a less condescending way with minimal effort I must say.

DullGreyGuy

TheSeeker44 said:

Well, I just called them up and got it cancelled, presumably because there was no legal grounds on which they could do that. I can't imagine an insurance company not capitalising on an opportunity to shaft the consumer.

It will depend on where you were relative to the renewal date. They certainly have a legal basis for a reasonable cancellation fee. Having had to provide information on cancellation fees over 15 years ago £50 was considered reasonable compared to the average cost of cancellation during the term of a policy.

If its within 14 days they would be entitled to charge you a cancellation fee and time on cover.

If it's after 14 days then its likely the add ons are non-cancellable so the time on cover increases and you get no refund for LE cover etc. 

Contrary to your view most, though not all, are generally reasonable and as long as you've bought cover elsewhere they can be more reasonable. Certainly some bottom feeding brokers will charge you in all cases. 

Mildly_Miffed

This is, I'm afraid, down to your failure to read the documentation you received from Admiral telling you that they'd auto-renew the policy unless you told them not to. Having not long allowed a policy with them to auto-renew (deliberately), I know for a fact that the paperwork and emails they send out are unequivocal. 

£115 cancellation fee is better than being prosecuted for no insurance, because you assumed it would auto-renew and it didn't...