Car insurance- cancellation fee?

Quentin

What is the £120 for? Is it the cost of the insurance you already have had as well as their cancellation charge?

Your policy/schedule should show their cancellation policy and charges.

money_saver_4

I am pleased to report that after a short email to Elephant customer services, I am now getting a full refund. They didn't even argue. So anyone who feels caught out, do the same. You never know, it might work.

Quentin

Fantastic!

And much more in keeping with the ethos of this site than some of the "smart" answers which were posted in answer to your original question by so-called fellow moneysavers.

That firm overcharged you and lied about why they had done so.

So glad you didn't accept what the others told you!!

money_saver_4

Quentin wrote: »

Fantastic!

And much more in keeping with the ethos of this site than some of the "smart" answers which were posted in answer to your original question by so-called fellow moneysavers.

That firm overcharged you and lied about why they had done so.

So glad you didn't accept what the others told you!!

Well, these "smart" replies got me angry enough to write the email, so I guess, they did help (in a way) :rotfl:

fumken

Dear all,
Just to let you know that after a letter to Tesco, they agreed to waive the fees and I paid only for the insurance they provided.
Many thanks to all who contributed.
Fumken

samizdat

dunstonh wrote: »

That happened to me last year. My car was a new model and high insurance group and my insurer at the time refused to offer cover on the vehicle. So, as they could not offer continuation they cancelled the policy with no cancellation or amendment charge levied.

So, did you complain and say that, in future, you would rather be charged in this situation rather than push up costs for everyone else?

I think it would be far preferable if amendments and everything else were included in the price, for the simple reason that it is very costly for all of us collectively to monitor all the different terms and conditions across all of our contracts. If the up-front price covers everything, it makes everything more simple and increases price transparency and therefore competition. Increased competition will lead to greater efficiencies and higher economic growth to the collective benefit of the whole of our society.

The converse is seen in the utility sector and the mobile phone sector, where an apparently simple product/service is dressed up in millions of different ways, justified by reference to "consumer choice" and the free market, whereas in fact it is all about trying to confuse the customer and oligopolistic strategies to segment the market.

Sorry to revive an old thread!

dunstonh

So, did you complain and say that, in future, you would rather be charged in this situation rather than push up costs for everyone else?

Absolutely not. As it was not me cancelling the policy it was only right that I was not charged. However, if it was me cancelling it then I would be prepared to pay the £25 it would have been.

I think it would be far preferable if amendments and everything else were included in the price, for the simple reason that it is very costly for all of us collectively to monitor all the different terms and conditions across all of our contracts.

So you think its better for everyone to pay more every year because you find the research difficult?

If the up-front price covers everything, it makes everything more simple and increases price transparency and therefore competition.

Explicit charging is more transparent than implicit hidden charges.

samizdat

dunstonh wrote: »

Absolutely not. As it was not me cancelling the policy it was only right that I was not charged. However, if it was me cancelling it then I would be prepared to pay the £25 it would have been.



So you think its better for everyone to pay more every year because you find the research difficult?



Explicit charging is more transparent than implicit hidden charges.

1. You should have realised when you took out the policy that you would upgrade your vehicle to a type on which your insurer would not offer cover. The fact you did not do your research has pushed up costs for everybody else.

2. It is not about whether I personally find the research difficult. The point is that it takes everybody time to do the research and this manifestly is an economic cost - "shoe leather costs" in economic jargon.

3. No, I don't agree about the transparency of explicit charging. Everybody has to read pages of terms and conditions to establish the charges and even then it is unlikely that they are all documented - you can imagine a scenario in which you would have been charged by the insurer who could not cover your upgraded car; but I doubt whether this would have been explicit in any legal document.

dunstonh

1. You should have realised when you took out the policy that you would upgrade your vehicle to a type on which your insurer would not offer cover.

The provider now offers cover on my vehicle. It was just a brand new model that they didnt offer at the time.

The fact you did not do your research has pushed up costs for everybody else.

Thats just being silly.

2. It is not about whether I personally find the research difficult. The point is that it takes everybody time to do the research and this manifestly is an economic cost - "shoe leather costs" in economic jargon.

Its not a cost to the insurer. Its a cost to the broker or the consumer that is DIY.

3. No, I don't agree about the transparency of explicit charging. Everybody has to read pages of terms and conditions to establish the charges and even then it is unlikely that they are all documented - you can imagine a scenario in which you would have been charged by the insurer who could not cover your upgraded car; but I doubt whether this would have been explicit in any legal document.

It didnt need to be explicit in any documentation as I was not charged. There is no point insurers pointing out what they dont charge for. They do make it quite clear what they do charge for.

As it stands you seem to prefer hidden charges that increases everyones premiums as its more transparent and better for the consumer. How is everyone paying more better for the consumer?

baffaroony

I had until recently two car policies with AVIVA one was paid in full at the time of purchase and one was paid using direct debit.
when it came to renew them i shopped around and got cheaper quotes.
I got a renewel notices from AVIVA and ignored them thinking that they will lapse and therefore be null because my contract with them expired .
I have now received a demand for payment on a direct debit i cancelled .
AVIVA it seems have carried on and renewed my direct debit even though i didn't renew my policy.
Surely me not renewing my policy signifies that it's no longer required?
After ringing one of their call centre staff and trying to understand the dialect it seems i owe them one months payment plus a cancellation fee?
Can they do this? can they renew your policy without your agreement?
After all if you pay by credit card they don't take the renewel fee off you when it's time to renew your policy!
I would appreciate your thoughts

Kind regards

Baffaroony