Car insurance cancellation fees Robbery!

foggytown

iamana1ias wrote: »

Perhaps a bit more background reading *before* you start shooting people down (who actually know what they are talking about :whistle:) would be advisable

If he knows what he is talking about in this thread, he hasn't demonstrated it to me yet. I'll put my 31 years working in and around Lloyd's, and my retirement interests in consumer rights, to the test any time.

dunstonh

foggytown wrote: »

If he knows what he is talking about in this thread, he hasn't demonstrated it to me yet. I'll put my 31 years working in and around Lloyd's, and my retirement interests in consumer rights, to the test any time.

I think I have demonstrated it fine. You on the other hand are not being objective and have a chip on your shoulder and you are letting that cloud your judgement.

NineThreeNine

To be honest, this is pretty standard fare. Admin fees are always in the region of £12-50. Cancellation refunds are never pro-rata and are usually non-existant after 90-180 days; leaving you with a lot of premium to cover if your paying monthly.

tubbee2

Can anyone clear something up for me - if someone is banned from driving and doesn't cancel their car insurance which then runs its course (avoiding cancellation charges) does this mean that it counts towards their no claims time period? And... while I'm asking, does adding more experienced drivers on the insurance of a less experienced driver reduce the premium as is commonly assumed? Many thanks

sylviad_2

Hello! Can anyone tell me if is right for the insurance company to charge me 30£ cancellation fee if I bought the policy from the Internet 5 days ago and I paid it in full ( £365 )?

dunstonh

sylviad wrote: »

Hello! Can anyone tell me if is right for the insurance company to charge me 30£ cancellation fee if I bought the policy from the Internet 5 days ago and I paid it in full ( £365 )?

What does it say in the T&C that you agreed to when you bought the policy?

Cancellation rights does not mean you are entitled to no costs. Certain things to allow a charge to be made.

veiledlady

i have just canceled my car insurance with RAC, i took out the policy on 19th June and payed £180.19 deposit which was for the 1st month and the last month,the premium is £997.00 i canceled it today the 20th July and they have charged me £108.00 plus £35.00 and my monthly payment of £79.94 they say they are charging me 40% of the premium as i am in the 2 month category by 1 day, i understand the cancellation fee of £35.00 and even the £108.00 (well not really) but i don't understand why they are taking this months payment out, this is daylight robbery surely, i think the government needs to do something about these insurance companies :mad: can anyone please help and tell me if complaining will do any good or am i just wasting my time with these muppets:( thank you

bouncydog1

As you will see from other threads on here, if you cancel a policy it is subject to short period rates which vary depending on how long the policy has been in force.

These are usually a percentage of the annual premium that would be charged and if you pay by monthly instalments, there is usually a cost for doing that as well.

This will all be in the terms and conditions which presumably you didn't read fully before you purchased so you would know what the outcome would be.

Insurers like all other businesses, have overheads and it costs them the same amount to set up a policy and direct debit for a contract that runs for one week or one year.

iamana1ias

veiledlady wrote: »

i have just canceled my car insurance with RAC, i took out the policy on 19th June and payed £180.19 deposit which was for the 1st month and the last month,the premium is £997.00 i canceled it today the 20th July and they have charged me £108.00 plus £35.00 and my monthly payment of £79.94 they say they are charging me 40% of the premium as i am in the 2 month category by 1 day, i understand the cancellation fee of £35.00 and even the £108.00 (well not really) but i don't understand why they are taking this months payment out, this is daylight robbery surely, i think the government needs to do something about these insurance companies :mad: can anyone please help and tell me if complaining will do any good or am i just wasting my time with these muppets:( thank you

You're wasting your time. You are breaking the terms of a 12 month contract. The penalties for doing so will be clearly stated in your policy documents.

veiledlady

I understand them charging me the other fees but i don't see why they should take out this months DD when i already payed 2 months in advance and have now canceled it oh well gonna have to work overtime to pay for it now