Forum Home» Insurance & Life Assurance

car insurance arrangement fee charged.

New Post Advanced Search

car insurance arrangement fee charged.

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
2 replies 527 views
ramfan1ramfan1 Forumite
12 posts
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
Hi all,

just came across something which surprised me and wondered if this is a common practice now with car insurance.

Basically insured my car 12 days ago, then insured my wifes car today and the rep at LV persuaded me to get a multi car quote for both. I was a bit sceptical as previous years its been more expensive than two single policies. But the multicar quote was super cheap so i accepted it.

So rang my other insurer and explained that i want to cancel my policy as i had a cheaper quote. They obviously charged me for the 12 days i had the car insured, but also charged the £50 arrangement fee which is non refundable. So i got a refund of £16 instead of the £56 i was expecting.

Now they cant charge a cancellation fee as im within 14 days of the policy start, so is this non-refundable arrangement fee a new thing to make money off people who cancel within 14 days.

I have no doubt that it will be in the T&Cs of the policy and accept it is my fault for not reading the policy properly. Also my new policy dwarfs any fees charged by previous company, just hadn't come across this before.

So is the car insurance company within there right to charge the arrangement fee and not refund part of it, if you cancel within 14 days?:money:

Replies

  • FutureGirlFutureGirl Forumite
    1.2K posts
    Fifth Anniversary 1,000 Posts Combo Breaker
    ✭✭✭
    Yes. An arrangement fee is different to a cancellation fee and is usually charged when you use a broker to arrange your insurance.
  • Insurers can charge a cancellation fee in the first 14 days. They can charge a fee proportional to the administration costs entailed in the cancellation of a policy during the 14 day cooling off period.
    Lloyds broker working in Private Clients and Property Owners.


    Looking to help and be helped.
This discussion has been closed.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support