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Exit Fee - Car Insurance

I have just cancelled my car insurance because I have sold my car and I am told I have to pay an exit fee of £45! The insurance for the year was only £225. Surely this is not fair!

Something to consider when searching for a great deal, although most people would transfer insurance to a new car, but I am just not keeping a private car.

I've never really liked that bloke from Esure anyway!!

Comments

  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Just a little tip- before you start a new thread it's a good idea to search and see if the topic you are posting on has come up before.

    The topic you have posted has been mentioned lots of times, and is legally considered a fair cost of cancelling insurance.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • Steve1981
    Steve1981 Posts: 565 Forumite
    Murff wrote: »
    I have just cancelled my car insurance because I have sold my car and I am told I have to pay an exit fee of £45! The insurance for the year was only £225. Surely this is not fair!

    Something to consider when searching for a great deal, although most people would transfer insurance to a new car, but I am just not keeping a private car.

    I've never really liked that bloke from Esure anyway!!

    on top of what olly says - I will give a short definition

    1) when you agreed to take the pol - but before you paid you were told the cancellation fee (you could have declined to take the pol - you didnt)

    2) Again after agreeing to take pol but before paying you were informed of a 14 day cooling off period in which you can cancel and get a full refund as long as no claims have been made - (again you didnt choose to do this)

    3) you have therefore agreed to the terms and conditions of the policy

    4) you cancel your policy = you pay the cancellation fee.
  • dunstonh
    dunstonh Posts: 121,263 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Pricing of your policy is designed to cover costs and make a profit for the insurer. If you cancel early it is not possible for the insurer to make the profit and often not even cover costs.

    The FOS have reviewed these charges before and in their publications they have accepted charges upto £50 as being fair.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Murff
    Murff Posts: 9 Forumite
    Part of the Furniture Combo Breaker
    HBOS Underlying profit before tax £644m 2007!!

    £45 cancellation fee! errr!!
  • Steve1981
    Steve1981 Posts: 565 Forumite
    Murff wrote: »
    HBOS Underlying profit before tax £644m 2007!!

    £45 cancellation fee! errr!!


    Maybe lots of people broke their contract like you:confused:
This discussion has been closed.
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