Car Car Insurance Termination Fee,s - AUOTDIRECT - N I G

Scooby_Saver_2

Hi,

I wonder if any body can help or advise.

My partner car broke some 3 weeks ago and after manging to source the parts I have been advised to scrap the car.

Ok - its a honda civic and nearly 15 years old.

When we phoned the broker - auotdirect they advised she have to pay 3 months canx fee,s which i thought was harsh - bad enough the car has to be scrapped but this as well.

The insurance is underwritten by NIG

So i wrote a not happy letter to autodirect - NIG - recored delivery of course so they cant play the " well we never recived it "

Has anybody had any success or worked a similar situation........

Many Thanks in advice for any help or suggestions

Bossyboots

Unfortunately they do not put a copy of their policy online.

However, cancellation fees are standard. You need to read your policy to see if it says the fee is 3 months premiums, often it is a sliding scale. If that is what it says in your policy then you have agreed to that and will have to pay.

Could you have misunderstood her meaning? When did the policy actually start? Most policies charge you proportionately. For example I looked it up once before for someone else (can't remember the insurer) and if they cancelled in the first three months, three months premiums were payable plus a cancellation fee. Then for the next few months it was pro rata so cancel after four months, you paid four months premiums plus the fee, same with five months etc up to nine. After nine, the whole year's policy was payable plus the fee if you wanted to cancel.

MarkyMarkD

Insurance is a one-year contract and you can't (normally) cancel early without paying a cancellation fee, which covers the costs incurred in setting up the policy which otherwise wouldn't be recovered, as well as the costs of returning the remaining premium.

As Bossy says, the basis on which the fee is calculated differs between insurers but losing 3 months' premium isn't particularly outlandish.

I doubt they'll refund it, if it's in your policy document as a term of the contract.

And they are not being as harsh as you suggest - most people would replace one car with another and transfer the cover, making no loss. A relatively low proportion of customers must cancel mid-term and not replace their vehicle.