Car insurance- cancellation fee?

money_saver_4

lisyloo wrote: »

Well if lots of people do the same then it will matter.
However most people will work off policy price, so I have a feeling that there won't be enough of a "backlash" to force the companies to change.

You are probably right, but at least it will make me feel better :rotfl:

Quentin

raskazz wrote: »

The charge is fair.

If the RAC could do it free until recently, and now only charge £30.45, it does seem that the £49 charged to the thread starter is far from "fair"!

Quentin

money_saver wrote: »

I am a little wiser now about this company's standards and will be voting with my feet.

Name and shame them.

At least we can all then try and avoid them too.

lisyloo

If the RAC could do it free until recently, and now only charge £30.45

You could be right but you'd have to also compare premium prices to get the whole picture.
My understanding is that these costs are not now included in up front premiums.
So if for example you found premiums had gone down £30 then you could say it was justifiable and fair.

Personally (at the risk of being unpopular) I think this is a better system.
I don't regularly change my car house or husband :-) so I don't want to subsidise people who are a bit less monogamous that me :-)
I realise that might not be the most popular thing to say but the analogy I would draw is Easyjey and RyanAir charging for luggage (and putting down prices).
Why should people who don't carry luggage pay for the privilege?

I'm sure you can see the logic of it even if you are on the rough end of the deal.

money_saver_4

The company involved is Elephant insurance.

As for understanding their logic, I can, as run my own business and understand the concept of profitability. However, I always warn my customers (in advance and not in small writing) what potential extra charges they may incur. So I guess, I expect similar customer services from others.

As for subsidising less monogamous, I am too very monogamous and stayed with the company for a few years. So feel that my loyalty was rewarded very badly.

lisyloo

However, I always warn my customers (in advance and not in small writing)

You should have been given a "cooling-off" period which should have given you enough time to cancel if you didn't like the policy.
It's normally 14 days from receiving the documents.
If you want more time then you should be able to request (or download) a policy in advance. Companies like Direct line have these available in pdf format for download from their website?
Are you saying you didn't get the documents to read at the beginning?
You should certainly compain if it's too small to read or request a "large print" version.

and stayed with the company for a few years

So you've had quite a while to read the documents then :-)

To be honest I think this information was available to you.
If the print was too small for you to read then you have had several years to request a large print copy or make a complaint.

ronben

Quentin wrote: »

RAC do charge an "admin fee" when you cancel. (£30.45).

As said I used to work thier, just goes to show how rubbish companies get when I leave

dunstonh

Given the choice which would you prefer:

1 - pay £300 a year and no charge for amendments or
2 - pay £250 a year and pay £50 for amendments?

Quentin

Smart answers like "if the small print was too small to read you have had years to request a large print copy" are not why this MoneySaving forum is here.

(And even if taken literally are no help either - witness the RAC who previously made no charge and now do).

At least money savers can now look at Elephant and see how they compare with the extra knowledge that they might face a £50 "fine" if for whatever reason they exercise their right to cancel the policy.

shelly

money_saver wrote: »

What worried me now is that my husband (who also holds a policy with this insurer) is planning to change his car in the next month or two and will also be charged £49 for canceling the existing policy.

If he is just changing cars and not getting rid altogether it might be worth just cancelling the current car and adding the new one, rather than cancel the policy altogether.
Its worth working out the cost of just changing old car for new against cost to cancel policy, loss of accrued NCB etc etc.

We bought a new car on Saturday and hubby said if it costs more than £75-£100 to change over cars he would cancel and get a new policy. I called the co up and it was £65.01 to take off current car and add new one for Saturday when we collect it. So to us it was worth changing the cars over instead of cancelling altogether.