The Great 'Car Insurance Cancellation & Administration Fee' Hunt

dunstonh

Reading some of these threads it seem this could be the next big rip off like the bank charges.

Not even close in comparison and the charge is quite fair. Of course, some people want to go back to the old way where premiums were higher and you paid for servicing whether you used it or not. However, the FSA prefers explicit charges to implict ones.

I refuse to believe it cost all this money to cancel a policy

It doesnt. But then it doesnt have to either.

everything is done electronically now

Even the people that process the work, those that programme the computers, the acturies that work on the statistics, the accountants, managers etc? How about the postage, phone bills, electricity, compliance with FSA requirements...... There is also the loss of profit and ability to recover the cost of setting up which is factored in over 12 months. If you dont go 12 months, then the cost of setting up has to be factored in somewhere.

must only take a 10-15 minutes it's a complete rip off.

Do you work for nothing?

I don't mind paying something maybe £10 but £40 for me and other £50+

Anything upto £50 is considered fair. There are no examples of anyone having to pay more than £50 unless they are behind on their premiums and/or the premiums are not pro-rata (that would only apply to monthly).

it's time this was looked into by the authorities.

It has been and there is no problem as this is their preferred way of doing it.

Would you prefer to pay more every year whether you used the service team or not or only pay when you use it? Why should others pay your costs?

1645j

What's done is done and I have had my soap box moment, I guess you are probably correct.
I suppose it's down to all those uninsured drivers that put the cost of insurance up I think I heard there was one million + uninsured drivers on the roads now and the people like me who abay by the rules have to pay for them too.

sickinthebin

"Anything upto £50 is considered fair. There are no examples of anyone having to pay more than £50 unless they are behind on their premiums and/or the premiums are not pro-rata (that would only apply to monthly)."

I have an example.

YES.

They charge on a percentage basis linked to the time remaining on the policy and the percentage goes up the nearer you get to the end of the 12 month policy term.

If you cancel with 7 months remaining for example they charge you 80% of the pro rata'd amount for that 7 months.

So, if your policy is £240 per year, 7 months pro rata is £140, therefore they charge you £112 to cancel, PLUS and admin fee of £15.

Absolute, unapologetic daylight robbery, but it is set out in the policy schedule which i stupidly didn't check before my wife called to cancel. My wife did ask them what the cancellation fee was before cancelling and they indicated that it was £35. In fact the £35 is included within the % charge but they conveniently glossed over that and concentrated on the fact that we would get a £13 "refund".

This basically means that if you want to make any changes (new car for example) they can quote way higher than competitors in the knowledge that it will cost you a lot of money to cancel and go with someone else. Win/win for them as they either carry on insuring your new car at an inflated premium or if you do cancel they keep the majority of your money with no risk.

Very annoyed with myself.

dunstonh

I have an example.

No you dont

You are not talking about the administration charge but the premium refund. Two different things.

ferneffor

Hi guys I have two questions about the cooling off system in the insurance companies:

1. From which day is the insurance policy active? From the day I complete the online form + pay for the first month and the deposit or from the time I receive the paperwork by email?

2. From which date the 14 days period is charged? Form the day I complete the online form + pay or from the day I receive all the papers by email?

Please help me I am having a hard time to find this info...

dunstonh

cooling off period is 14 days from receipt of the cancellation rights. That could be instantly with electronic methods as many email or give you download links to use. It could also be before the first premium is paid potentially.

YvonneC040

We sold our van and contacted Esure to cancel the remaining insurance policy, we were advised that £75 remained on the policy but the administration fee would be £60 .............£60 QUID !! :eek:
We 'discussed' this fee at length but got nowhere, even asked to speak to a supervisor with no luck whatsoever. We have other Esure policies and requested that it should be transferred to the existing policy. NO WAY

Makes me wonder if we'd have owed them something more if there had been just £30 quid remaining.
Diabolical.................... Shame on you Esure

dunstonh

YvonneC040 wrote: »

We sold our van and contacted Esure to cancel the remaining insurance policy, we were advised that £75 remained on the policy but the administration fee would be £60 .............£60 QUID !! :eek:
We 'discussed' this fee at length but got nowhere, even asked to speak to a supervisor with no luck whatsoever. We have other Esure policies and requested that it should be transferred to the existing policy. NO WAY

Makes me wonder if we'd have owed them something more if there had been just £30 quid remaining.
Diabolical.................... Shame on you Esure

Esure's published charge is £55 for cancellation during the first year of cover but £27.50 in second and subsequent years.

http://www.esure.com/car_insurance/small_print/administration_fees/

So, you shouldnt have been charged £60 and should complain that they are charging you more than the published tariff.

To be fair to esure, their published charge is fair. Year one is always more expensive to an insurer so charging more in that year than in later years seems reasonable.

flyingflea

Churchill cancellation fee: £26.25
Churchill administration fee: £22.05

Source:

http://www.churchill.com/pdf/car_summary.pdf

iNath

flyingflea wrote: »

Churchill cancellation fee: £26.25
Churchill administration fee: £22.05

Source:

http://www.churchill.com/pdf/car_summary.pdf

Thanks, updated 1st post