14 Day Cancellation Notice??

neddog

Hi

My car insurance company, More Than, has just contacted me with my new renewal premium.

The insurance actually expires on Monday 12th May. As usual the premium has gone up significantly since I first insured with them last May. If I do renew it apparently I will have 14 day to cancel if I so wish.

What’s to stop me from letting it run for 13 days then cancelling with More Than and moving to a cheaper company? Which in effect will give me 13 days free insurance or am I missing something?

More Than will not debit my account until the 27th of the month.

Any advice regarding this would be gratefully received.

Thanks

raskazz

Probably not. If a policyholder cancels within the cooling-off period then the insurer can charge a pro-rata figure for the time you were actually on cover, plus a reasonable administration fee. Or, it can take the full annual premium if you are unlucky enough to have claimed in that period.

lisyloo

Also factor in the hassle factor.
They may well loose your cancellation letter (amazing how many of these get lost).
They will want proof of other insurance before you get a refund.

I sent this 3 or 4 times and amazingly it got lost every time.
In the end I got someone at the other end to stand by a fax and then faxed it.

So basically - don't expect them to co-operate in giving your refund.
You will encounter unprecedented levels of "lost in the post".

Perhaps I'm being cynical but it's amazing that no bills ever get lost but every time you send a cancellation letter it magically goes missing.

dunstonh

Cancellation rights does not mean you get 14 days of free cover if you cancel. You will pay for the days you use.

lisyloo

I have had total refunds in the past with both house insurance (tescos) and car insurance (esure).
But the house insurance was about 5 years ago.

I believe that many companies have now changed their policies.
Esure certainly have.
You have to pay for time on cover as well as an admin fee.

dunstonh

They have a right to charge for the period covered. That doesnt mean all will but with certain insurances it is more common. I dont think any/many household plans charge but car insurance is more common. Life assurance doesnt.