Outraged at cancelation charges for car insurance

Options
Martha.Meza-Munoz
Martha.Meza-Munoz Posts: 1 Newbie
in Insurance & life assurance
Hi, Sorry its a bit long!


I need some a advice, I had to cancel my car insurance policy with Go Skippy as they were unable to provide me with a quote to use the car to commute to different places of work. I realise this was something requested from work so after 2 months with Go Skippy I call them to ask for a new quote.


I was paying £111.85 per month and after getting the quote (with no increase in the mileage) they told me that my monthly payment will increase to more than £200 per month. I found this ridiculous and after asking around friends and colleagues told me that the maximum increase would be of £50 and certainly no what I was told.


I shopped around and found other insurance companies that added to my monthly no more than £20 for what I needed. So I call Go skippy customer services and told them that I had cheaper quotes and ask if they could match them. Their answer was no as the brokerage company they use only provided that quote. Therefore, I had to cancel and asked for a breakdown of any charges or refunds and received an e-mail telling me that I have an outstanding balance of £325.00 and I should contact them to pay it.


Now, I check the cancellation policy and it states that chargers are £75 for cancelling after the 14 day period (I started the insurance on the 29th of September 2017), £50 for brokerage chargers and I assume the £111.85 for the monthly payment. The sum of this still do not add up to the ridiculous amount they are asking me.


Please I need to know what can I do if anything as I think this is outrageous and should not be ask to pay such amount.


many thanks!!
«13

Comments

  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
    First Anniversary Name Dropper First Post
    Options
    Ask them for a breakdown of their charges and take it from there.
  • marlot
    marlot Posts: 4,935 Forumite
    Name Dropper First Anniversary First Post
    Options
    Most car insurance is an annual contract. I realise that you pay monthly - but behind the scenes that is probably a loan, which you're paying off month by month.

    You'll have to look at your insurance documents to find the cancellation terms.

    If you feel they are unfair, you can lodge a complaint.
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
    First Anniversary Name Dropper First Post
    Options
    As above charges to cancel the insurance = £75. But what about the finance you took out to pay for the (yearly) policy?

    Legal protection? Or other extra's?
    Censorship Reigns Supreme in Troll City...

  • Blibble
    Blibble Posts: 503 Forumite
    Name Dropper First Post Combo Breaker First Anniversary
    Options
    As above, request a breakdown of the charges. Could the insurer be charging pro rata for any other days you were insured, or for any interest etc. from future premiums being lost (as the premium is monthly, and therefore subject to interest as the loan is being terminated early?)
  • dunstonh
    dunstonh Posts: 116,383 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    It is quite normal for the cancellation rate to be applied more heavily in the early months than the later months. This is because virtually all the admin costs are suffered at the start. So, cancelling in month 1 may see you pay the equivalent of 3 months cover. As the year goes on, the cancellation rate gets closer to pro-rata.

    As you were financing your car insurance under a credit agreement, there are likely to be credit costs involved as well. Plus, the possibility of some non-refundable extras (like breakdown or legal expenses).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    Options
    Shouldn't at least some of your outrage be directed at yourself for failing to read and understand the charges before you took out the policy?
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    not money saving to pay monthly either, might as well put money down the toilet. It's like getting a high interest loan
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • OnanTheBarbarian
    OnanTheBarbarian Posts: 1,500 Forumite
    First Anniversary First Post
    Options
    Whilst you are correct that paying monthly costs more, looking at the monthly premiums of £111 could you afford to throw down £1200 in one hit?
  • sheramber
    sheramber Posts: 19,131 Forumite
    First Anniversary I've been Money Tipped! First Post Name Dropper
    Options
    Go Skippy is a broker so there will be commission included in the charge.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    OnanTheBarbarian wrote: »
    Whilst you are correct that paying monthly costs more, looking at the monthly premiums of £111 could you afford to throw down £1200 in one hit?



    but it's cheaper to pay annually, otherwise you get into a cycle of debt and loans
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards