Car insurance

Maryrigby

After looking on comparison site, I took out car insurance with RAC.  My existing insurer, on hearing this, offered me a cheaper quote.  I cancelled RAC and they have charged me £25 even though I had only taken it out within the hour.  They also took the full amount from my credit card even though the policy wouldn't have started until 1st September.  Not very happy, although I acknowledge I've likely been naive!! 

Albermarle

I am sure if you read the RAC terms and conditions, the charge will be clearly stated.

martinbainbridge1975

14 days cooling off period should apply, especially if you cancelled within an hour

retiredbanker1

martinbainbridge1975 said:

14 days cooling off period should apply, especially if you cancelled within an hour

From a Google search

• Refunds and Fees: If you cancel during the cooling-off period, you're usually entitled to a refund of any premiums paid. However, the insurer may deduct an amount to cover the period you were insured and may also charge a small administration fee.

born_again

RAC are not a insurance underwriter. They are just a broker.

oldagetraveller1

martinbainbridge1975 said:

14 days cooling off period should apply, especially if you cancelled within an hour

Yes, but some charge an "administration fee" in spite of that. 

This is not the RAC and applies even if cancelling within the 14 days. 

"As an insurance broker, we have to manually perform a variety of security and integrity checks on behalf of our insurance providers for both home and motor insurance. Unfortunately, this does cost time and money to perform and starts as soon as you purchase the policy. The fee is charged by us as a broker to recover any costs incurred whilst settling the insurance, providing a service and cancelling the insurance."