The Great 'Car Insurance Cancellation & Administration Fee' Hunt

Nige72

Hello, bit of advice.

I just tried to cancel my insurance with the halifax (car) as I'm changing my car and have been quoted quite a bit cheaper with a specialist car insurer for the car I'm getting

The insurance cover started on the beginning of november and the full policy was £480.

I have already paid £120 with the 2 installments I have paid and when I rang today they told me that I owe 50% interest fee on the rest of the policy along with a £45 cancellation fee, meaning it was near on £250 I owe them to cancel the policy

Two questions, is this right as it seems very excessive to pay £370 of a £480 policy for 2-3 months use of it, and secondly is there no way I can argue against this?

many thanks

mikey72

Nige72 wrote: »

Hello, bit of advice.

I just tried to cancel my insurance with the halifax (car) as I'm changing my car and have been quoted quite a bit cheaper with a specialist car insurer for the car I'm getting

The insurance cover started on the beginning of november and the full policy was £480.

I have already paid £120 with the 2 installments I have paid and when I rang today they told me that I owe 50% interest fee on the rest of the policy along with a £45 cancellation fee, meaning it was near on £250 I owe them to cancel the policy

Two questions, is this right as it seems very excessive to pay £370 of a £480 policy for 2-3 months use of it, and secondly is there no way I can argue against this?

many thanks

see post #147

Nige72

Is that saying I have no option but to stay with them or pay it?


Or that up to 2 months I should expect to pay 40% of the policy?


If it's the latter are they being unreasonable asking me to pay a total of £370 of a £480 policy for 2 months use of the policy?

mikey72

Reading it, it looks like the FOS allow a pro rata charge, which would be £80 for two months, plus up to £50 fee. So £130 in all. A bit muddied by the fact you're paying in installments, but saying as you have paid about that much already, it's worth a letter of complaint, and ensure you tell them you will complain to the FOS if they still insist on a punative amount.

g4jnw

Have been with the coop (eco insurance) for a couple of years but as i tend to change cars maybe 3 times a year I have paid this year £100 in charges which doesn't make them cheap any more.
I tend to buy oldish cars but the worst was when i took out insurance and the car failed but the seller took it back in 2 days then i bought another and i got charged £25 admin fee - twice!!

I have told them that in august when i change i will leave them -

I will be looking out for a no admin charge company.

To be fair have not lost any money on cars this year, only on insurance!!!

glappylad

In conversation today (28 March) with Aviva, cancellation fee is £40.28. I didn't ask them about any other charges, so I guess there will also be their "Admin fee" to pay - whatever that now is.

dunstonh

glappylad wrote: »

In conversation today (28 March) with Aviva, cancellation fee is £40.28. I didn't ask them about any other charges, so I guess there will also be their "Admin fee" to pay - whatever that now is.

Thats a strange figure for a cancellation fee. Normally admin/cancellation fees are round figures. Are you sure thats the fee and not an amendment in premium due?

g4jnw

annw58 wrote: »

im with one call insurance.called today to change details for a new car.charged administration fee of £55 pounds no choice but to pay as would have been charged cancelation fee. how are they allowed to charge so much.

one thing i will make sure of when i do a search is that i will look at cancellation and admin fees, they do realise of course that a lot of people swap there cars.

dunstonh

annw58 wrote: »

im with one call insurance.called today to change details for a new car.charged administration fee of £55 pounds no choice but to pay as would have been charged cancelation fee. how are they allowed to charge so much.

1 - £55 is not much

2 - you agreed to it when you bought it. if you didnt like their admin charges then you should have chosen a provider that charged less.

mikey72

It's still £5 more than has been allowed by the FOS.
It's worth a complaint, in case the insurer is trying to move the ceiling upwards, and you may get a fiver back.