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  • FIRST POST
    • Deeonehere
    • By Deeonehere 13th Oct 18, 4:28 PM
    • 7Posts
    • 1Thanks
    Deeonehere
    Car Insurance Cancellation Fee
    • #1
    • 13th Oct 18, 4:28 PM
    Car Insurance Cancellation Fee 13th Oct 18 at 4:28 PM
    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.
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 13th Oct 18, 5:30 PM
    • 25,362 Posts
    • 12,583 Thanks
    jonesMUFCforever
    • #2
    • 13th Oct 18, 5:30 PM
    • #2
    • 13th Oct 18, 5:30 PM
    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.
    What goes around - comes around
    give lots and you will always receive lots
    • dunstonh
    • By dunstonh 13th Oct 18, 5:59 PM
    • 96,058 Posts
    • 63,874 Thanks
    dunstonh
    • #3
    • 13th Oct 18, 5:59 PM
    • #3
    • 13th Oct 18, 5:59 PM
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Deeonehere
    • By Deeonehere 18th Oct 18, 7:46 PM
    • 7 Posts
    • 1 Thanks
    Deeonehere
    • #4
    • 18th Oct 18, 7:46 PM
    • #4
    • 18th Oct 18, 7:46 PM
    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
    • By jeffroswald 21st Oct 18, 12:50 PM
    • 8 Posts
    • 3 Thanks
    jeffroswald
    • #5
    • 21st Oct 18, 12:50 PM
    • #5
    • 21st Oct 18, 12:50 PM
    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
    • By forgotmyname 21st Oct 18, 6:20 PM
    • 28,164 Posts
    • 11,448 Thanks
    forgotmyname
    • #6
    • 21st Oct 18, 6:20 PM
    • #6
    • 21st Oct 18, 6:20 PM
    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.
    Originally posted by Deeonehere

    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.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
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