Contract with NU Car Insurance???

Debs_B_2

Hiya
I was looking for cheaper car insurance as my husband is currently with Norwich Union since it was passed from Abbey National. I noticed on their website that if we took insurance out with them that it would be cheaper than we are paying now (identical car, details, everything) - I know it's cheaper to apply online but even taking this into account we were still paying quite a lot more. I emailed them to point this out and have received one back from them this morning.. I'm fuming!
He pointed out that if my policy was NOT up for renewal that to cancel insurance with them I would have to pay a fee... I've copied below what he said

"If the policy is not due for renewal then you are bound by the contract, you can cancel this and pay a charge of £30.45 and if after this cancellation fee the price is still an improvement you can accept the new on-line price"

Can they do this???? Why can't he just change the policy? Can someone give some advice please? I want to leave them as I have found some that are a cheaper but now I don't know what to do?? Please help!!
Thanks
Debs

Debs_B_2

I have just received another email from him.... looks like he may be right... is there any way out of this??

"This is correct as you have accepted the policy and the conditions for a 12
month period at this rate of premium".
Thanks

MarkyMarkD

Of course he's right - insurance is an annual contract and you signed up to the price when you took out the policy. You can't cancel half way through the term and demand new customer rates, without paying the cancellation fees which are set out in the contract.