Car insurance- cancellation fee?

dacouch

Send them a copy of the certificates for the alternative insurance you arranged, providing it runs concurrently they will normally delete the charges

baffaroony

Many thanks dacouch i'll give it a go!

best wishes
Baffaroony

shelly

baffaroony wrote: »

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 .

Next renewal time don't ignore the notices, read them carefully. Usually these days they say something along the lines of 'If you wish to renew with us you don't need to do anything. We will take payment on X date and send you your new policy'
Hubby opts out of auto renewal where possible but usually a call to the co at renewal time telling them you aren't renewing either gets a better quote or cancels the renewal.

HTH

samizdat

dunstonh wrote: »

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

The point is it is a net cost to the economy as a whole. If car insurance policies were more standardised, less time would be spent on research by people in aggregate, which would mean they would have more time to engage in more productive activity. Moreover, the effect would be to commoditise the insurance market, which would increase price transparency, thereby increasing competitive intensity in the car insurance market. People would find it easier to switch. This would lower the cost of car insurance.

dunstonh wrote: »

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.

I pointed out that one can imagine a scenario in which your insurer would have charged you in these circumstances. I was making the point that, in this eventuality, there may well have been nothing explicit in the terms and conditions to alert you to this. There would have been a general term allowing the insurer to charge for cancellation and another term stating that the insurer was not obliged to quote for cover on all cars. However, you could also imagine an insurer just quoting a high price for cover whenever a client wished to change his/her vehicle, which would effectively force that person to accept a cancellation charge.

dunstonh wrote: »

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?

On the contrary, I am suggesting that insurance prices would be lower for everyone if policies were standardised because it would commoditise the market and increase competition. Moreover, the productivity of the economy would improve because less time would be wasted on research.

dacouch

The FSA have already in effect commoditised Insurance by making Insurers supply the information to a consumer when they receive a quotation in a standard form where they can compare the cover and exclusions from one Insurer to another along with declaring the fees up front.

By the way in doing this the result was that everyones premiums have increased due to the additional paperwork and administration costs.

samizdat

dacouch wrote: »

The FSA have already in effect commoditised Insurance by making Insurers supply the information to a consumer when they receive a quotation in a standard form where they can compare the cover and exclusions from one Insurer to another along with declaring the fees up front.

By the way in doing this the result was that everyones premiums have increased due to the additional paperwork and administration costs.

Oh yeah, by about £0.0314 per policy or something? I mean, how incredibly burdensome to supply one extra piece of paper to everybody, on top of all the marketing twaddle, cross-selling leaflets, insurance booklets and so on that accompany every policy.

Insurance prices change all the time for a whole host of reasons, e.g. the yield on short-term government bonds, claims experience etc. so I am not sure how you would attribute a change in prices to any specific regulatory requirement.

dunstonh

Oh yeah, by about £0.0314 per policy or something?

I read an article recently that estimates that the cost of complying with FSA, FSCS and FOS rules and paying for them is around £3 for every £10 spent. That is not too far away from what my own figures come out at.

Quote

samizdat wrote: »

I am suggesting that insurance prices would be lower for everyone if policies were standardised because it would commoditise the market and increase competition. Moreover, the productivity of the economy would improve because less time would be wasted on research.

:rotfl:

What research? Do you mean trawling through the internet trying to find the cheapest possible insurance?