Car Insurance Cancellation Fee

Deeonehere · 13 October 2018 at 4:28PM

Hi There, looking for a bit of advice.

I currently insure my 19 yo daughter as a named driver, she activates an app each time she drives, the cost is £1200 a year.

Getting a new car and looking at making her the main driver, so she can start accruing NCD. Surprisingly I can do this at a cost of about £850. Looked at cancelling the current policy, in place since June, and it says:

"If you choose to cancel the insurance policy after this initial period of cover (cooling off), you will have to
pay ‘pro-rata’ rates for the period of time you have had insurance cover. There will also be a cancellation fee of £150 payable to your insurance intermediary, sufficient to cover both theirs and
the Insurers costs."

Although in the long run, it will probably work out cheaper, wanted to know if £150, could be deemed as reasonable, as this seems extremely excessive.

Any thoughts would be appreciated.

jonesMUFCforever · 13 October 2018 at 5:30PM

Yes as you were advised of it at time of purchase and you could have chosen to insure elsewhere if you did not like that part.

dunstonh · 13 October 2018 at 5:59PM

What is reasonable is what you agreed when you took the policy out. i.e. if it was in their published tariff at that point, then it is reasonable.

If you thought it was excessive then the time to worry about that was before you bought it. It is too late after you bought it.

Deeonehere · 18 October 2018 at 7:46PM

Thanks both, lesson really is read the small print, as I didn't take note at first (didn't think I'd be cancelling before the year) :-)

jeffroswald · 21 October 2018 at 12:50PM

To be fair this does sound like an expensive cancellation fee. I think the average most insurers charge is around 50 quid. Still, not sure that's very helpful now.

Sorry to hear you've had a horrible experience.

forgotmyname · 21 October 2018 at 6:20PM

Deeonehere wrote: »

Hi There, looking for a bit of advice.

I currently insure my 19 yo daughter as a named driver, she activates an app each time she drives, the cost is £1200 a year.

Getting a new car and looking at making her the main driver, so she can start accruing NCD. Surprisingly I can do this at a cost of about £850. Looked at cancelling the current policy, in place since June, and it says:

"If you choose to cancel the insurance policy after this initial period of cover (cooling off), you will have to
pay ‘pro-rata’ rates for the period of time you have had insurance cover. There will also be a cancellation fee of £150 payable to your insurance intermediary, sufficient to cover both theirs and
the Insurers costs."

Although in the long run, it will probably work out cheaper, wanted to know if £150, could be deemed as reasonable, as this seems extremely excessive.

Any thoughts would be appreciated.

The policy holder accrues the NCD not the main driver or named driver. Although some companies will offer an introductory discount, it is not a given right to earn it.

Your policy, then the NCD is yours.

Car Insurance Cancellation Fee

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