Policy Expert - beware paying before the policy commences

trumpeter_2

Most insurers refund any payment you make in advance if, for example, your car purchase doesn't go ahead, so your cover doesn't even begin.
Policy Expert charges £30 in this case, and will not waive the fee even if you've had car (and home) insurance with them (claim-free) for many years.
There are companies who do not charge if cover doesn't commence.

flaneurs_lobster

So you were going to buy a particular car, you took out insurance before you bought it, and the sale fell through?

Why would you purchase cover for a vehicle you don't own? insurance can be bought for immediate coverage.

Every quote request form I've seen asks when you bought the car, and if you haven't yet bought it it asks if you want cover from a particular date. If you say yes then it will continue to quote and you can buy.

Once a policy has been agreed, then you can be charged a fee for cancelling (regardless of "cooling-off" periods). 

~£30 sounds about the usual fee.

Be good to know what motor insurers don't charge for cancelling coverage once agreed, even if cover has not started.

I renewed my motor insurance last week, coverage on the new policy starts in two weeks. If I now cancel that policy I would expect to be charged the cancellation fee.

trumpeter_2

I get that you think I should pay for cover I didn't have. But I don't agree!

I have taken on board that I should leave it until the day I need insurance before I pay, otherwise I may have to pay an admin fee. That was, in fact, the point of my message.

To answer your question, I bought from Aviva. Aviva's terms and conditions state that all monies will be refunded if the cover does not commence.

I will never use Policy Expert again. And I've sent a GDPR request for my data. They'll need to do something for my money

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81861351#Comment_81861351

They already did something 'for you money' - they set up the policy you asked for so unless you think that cost £0 to them.......

huckster

Policy Expert are brokers? So they will have terms and conditions as brokers about such charges?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81864634#Comment_81864634

They are a different type of intermediary, a MGA. In most respects they act as if they are an insurer but the buck ultimately stops with the carrier(s) should they sell unprofitable business and its the carriers that are responsible for the other boring insurance stuff like reinsurance, capital etc

dunstonh

Most insurers refund any payment you make in advance if, for example, your car purchase doesn't go ahead, so your cover doesn't even begin.

That is not correct. The dominant position is a cancellation or administration charge. They cannot charge you any premium but they are allowed to charge an admin fee.

Policy Expert charges £30 in this case, and will not waive the fee even if you've had car (and home) insurance with them (claim-free) for many years.

So, they are doing what most do.

There are companies who do not charge if cover doesn't commence.

Yes there are. However, that pricing model typically bundles the costs of administration into the premiums instead.

I get that you think I should pay for cover I didn't have. But I don't agree!

They are not allowed to charge you for cover. That is not what the fee is for. It is for the costs you created during set up and cancellation.

To answer your question, I bought from Aviva. Aviva's terms and conditions state that all monies will be refunded if the cover does not commence.

Aviva have a cancellation charge mid term but not within the initial 14 days before cover starts. Aviva cover those costs by increasing the premium. Aviva also have a variant that has no cancellation charge mid term either. Again, the costs of that are reflected in the premium.

I will never use Policy Expert again. And I've sent a GDPR request for my data. They'll need to do something for my money

Sounds like you are heading down a path of insanity.

Seeing as the majority charge cancellation fees, is it fair to say that you will never use those either? In which case, you are likely to end up paying more over the years. The unbundling of costs to charge explicitly typically results in lower insurance premiums apart from in the year you create an admin charge.