Tesco Car Insurance Renewal Penalty

richie3000_2

Hi,

I am hoping someone can help me. I have been with tesco car insurance for a number of years now and my renewal has just come up. I got a much better quote from another company and so have canceled my tesco renewal. I have now been sent a letter by tescos to tell me that I am going to be charged one months premium plus £10 for cancelling. I have never been charged for not renewing a policy before and was wondering if this is fair, it seems like a penalty to me. I might understand it if I was cancelling during my cover, but not when it has finished and all money has been paid.

I hope someone can shed some light on this.

Thanks.

tinkerbell84

what date is your renewal due?

Nomad25

If this is as straightforward as it would appear, I think they have a bloomin cheek - tell them to take a hike. People change insurers, not just for car cover, all the time, I have never heard of a charge being levied for non-renewal.

lisyloo

and my renewal has just come up

So has the new year already started.
Can you provide dates to clarify.

I might understand it if I was cancelling during my cover, but not when it has finished and all money has been paid.

It might be on auto-renewal.
So whilst the first year has finished, the second one has actually started and you are cancelling a running policy.

Please provide some dates to clarify what has happened.

When does your Tescos policy start/end?
When did you tell them anout cancellation - before or after the end?

richie3000_2

Hi, thanks for your replies. The insurance was up on the 1st of May, and I cancelled the week before, so had not started yet.

lisyloo

It sounds like a mix up.

Thre are several explanations
1) It's possible that the cancellation didn't get to the right department until after the new policy had started. This is not your problem UNLESS it specifies a notice period in your policy of more than one week.
2) It could be a deliverately cynical ploy. You'd be amazed how many cancellation letters get lost in the post.

For future reference it may be wise to ask for an acknowledgement letter or send your cancellation letter recorded delivery (70p) that way you can prove they received it.

I would call them and see what they say as you shouldn't be charged for cancelling in advance unless of course you didn't give sufficient notice under the contract you signed up to.

BenL

I wonder if they are charging you for cancelling the policy that was just ending within the week.

I got a better quote for my Tesco Home Insurance and called them in advance and no charge was made.

The advisor may have mis-understood what you were wanting to do.

Hopefully it can be sorted out, the phrase I usually use for things like this is "I am ringing to decline your offer of renewal"

This I have found spells it out and gets it actioned correctly.