14 day cooling off apply??

reevo8

Does this apply to car insurance? As I dont beleive I can afford the new mpg, and so would like to cancel an insurance policy can I use the 14 day cooling off law here? Or will I just sacrifice my deposit?

Hintza

I presume you have had the benefit of cover? I would have thought you can cancel and pay the admin charge etc. But I very much doubt you can use the 14 day rule.

Thunderbird_2

reevo8 wrote: »

Does this apply to car insurance?

No, It doesn't!

Financial services are excluded from the Distance Selling Regulations. You will be charged an admin fee/a cancellation fee.

Check your policy and to see how much it is.

By the way, there are few websites that might give you an idea about the MPG for any car you might be interested in so at least you will have the ability to check if you can afford its fuel running cost.

www.parkers.co.uk check the Facts and Figures in the reviews' section
www.whatcar.co.uk gives a rough idea about running costs and which engine to go for.
www.honestjohn.co.uk click on the car-by-car icon and pick the car from the drop list.
www.autotrader.co.uk click the Technical Data link underneath the adverts picture

Good luck next time.

Crabman

I'm pretty sure when I last bought a motor policy it allowed 14 days to cancel, provided no claim(s) had been made. Which insurer was it? If you've not received the policy documents try looking for the T&Cs on their website.

Thunderbird_2

Crabman wrote: »

I'm pretty sure when I last bought a motor policy it allowed 14 days to cancel, provided no claim(s) had been made. Which insurer was it? If you've not received the policy documents try looking for the T&Cs on their website.

Yes, you can cancel within the 7 or 14 days cooling off period, provided you haven't claimed. However, you will not be entitled for a full refund because you will be charged a cancellation fee/ admin fee for doing so.

Can you imagine how cool it would be to havea free insurance for 14 days that you can cancel only to buy another one for another 14 days and every time you cancel and get a ful refund!

Crabman

Thunderbird wrote: »

Yes, you can cancel within the 7 or 14 days cooling off period, provided you haven't claimed. However, you will not be entitled for a full refund because you will be charged a cancellation fee/ admin fee for doing so.

Can you imagine how cool it would be to havea free insurance for 14 days that you can cancel only to buy another one for another 14 days and every time you cancel and get a ful refund!

Some policies charge an admin fee after the cooling-off period, however, this is what my Prudential policy states:

Your Right To Cancel
If this cover does not meet your requirements, please return all your documents within 14 days of receipt. We will return any premium paid in full provided no claims have been made on the policy during that time. The full annual premium is due if a claim has been made during that time.

No mention of an admin/cancellation fee & they say, "we will return any premium paid in full." Wouldn't subtracting an admin fee contradict that?

Thunderbird_2

I have an insurance policy with ecar insurance which states:

"You have a 14 day cooling off period. Within this period, you have the right to cancel this insurance policy if it dosen't meet your requirments. This cooling off period will commence either from the day of purchase of the policy, or the day on which you receive your policy documentation; whichever is later. Please note that the cancellation of your policy after cover has commenced will not result in a full refund. A cancellation fee will be incurred, together with a charge based on the number of days you have been on cover. No refund will be issued if a claim is made on the policy."

I bought it 3 months ago after I cancelled a policy I bought over the phone ( I will never do this again :mad: as they don't tell you everything over the phone, do they!!) It was Prudential, by the way, through Swinton. I cancelled within the first 7 days and incurred a cancellation fee. I don't know if going with them direct will make a difference.

I remember few years back I cancelled a policy with swiftcover ( discovered this website then :money: ), despite of being an online insurer where you print out your own policy documents, they charged me £10 admin fee.

Is your policy from last year, crabman?

P.S Everytime I see your user name I smile as it reminds with that American series ( What was its name?!!)

Crabman

The policy was set up in December so not too long ago. The only change I noticed was that the excess for a windscreen repair is now £10 whereas it used to be free.

I always thought a cooling off period meant you had a chance to read through all the terms & conditions and cancel if you didn't agree. I definitely wouldn't buy a policy if an insurer levied a charge for cancelling within the first 14 days.

Yes, you're right - 'My Name Is Earl', clicketyclick

Thunderbird_2

:T Yes, "My name is Earl"!!!lol I loved it when it was on. Karma!!:j

£10 is good as most policies I came across the excess for the windscreen was £50!

Crabman

Thunderbird wrote: »

:T Yes, "My name is Earl"!!!lol I loved it when it was on. Karma!!:j

£10 is good as most policies I came across the excess for the windscreen was £50!

In fact it's still on... tonight, 10pm, Channel 4 :T

Centium5000

Thunderbird: I've been having a similar issue with Swinton's cancellation charge for home insurance - do you think the charges would be unenforceable under the Financial Services (Distance Marketing) Regulations: http://www.opsi.gov.uk/si/si2004/20042095.htm

...I'm particularly looking at section 13., point (7) about penalty charges...

Look forward to hearing what you think :think: