Insurance company won't accept no claims bonus

[chattykathy]

My brother's car insurance company are saying that he didn't cancel his policy 'properly' and are demanding a cancellation fee of £350! They had sent him a very high quote and he said, 'don't do it' when spoke to them. He then found a better quote but the new insurers want 'proof' of his no claims bonus which the old insurers are refusing to give until he pays the £350. He gave the new ones a copy of the NCB figure on his renewal form but they say this is insufficient. What action should he take next?
TIA

[Nosha123]

I believe he might be able to put them in touch with each other directly
I recently renewed my insurance with a new company and I had the option of giving them my policy details and contact details for the old insurer and I believe they got the info they needed themselves!

[chattykathy]

He's tried to do this,Nosha but the 1st lot refuse to do until he pays the £350. He does tend to rush into things without reading the small print. Any ideas of who he should contact for advice?

[boxtops]

Is this a big insurance company which is kicking up a fuss, or one of the small ones? When was his renewal, when did he say no to the earlier quote (presumably a renewal quote)?

[Nosha123]

Can you name them here?
I have never heard of this and have cancelled a couple of policies...
Can they provide a breakdown as to what the costs are for other than 'cancellation'
Surely if any fees apply an admin fee might be more acceptable... of no more than £50
Who are they?

[bednobs]

did the policy actually start?

[Nosha123]

You will need to check his renewal notice too - as that will probably state on it what he would have to do to renew or to cancel...
Read the policy small print entitled cancellation...

Was he half way through a years policy??? Or did he cancel it at the end of the policy when the renewal notice arrived?

[boxtops]

IMO, as long as he told the old company before renewal that he didn't want to renew they should just cancel at renewal, and send a letter with info about the NCB earned last year - we change our car insurance nearly every year and this is what's always happened. I suspect he may have left it until after renewal so the policy was in force? What do they say that the £350 is for?

[chattykathy]

It was at renewal, I think he did do it in time but probably not in the right way e.g in writing. All they are saying is that it's the cancellation fee which seems pretty steep to me. It's a broker called 1st Quote he's dealing with. He's stuck now because he has to either pay the £350 or an increase in his present premium for not having any No claims bonus

[Nosha123]

Hmmm.. what do the insurance company say?
Can he not go direct to them rather than through a broker?
This seems hugely unfair for them to charge money like that!!!

[chattykathy]

I know, I'll get him to contact insurers directly. Thanks

[factor-fiction]

I think there must be some other issue here- for example maybe the cancellation was done too late.

[chattykathy]

I think that might be the case. I know he didn't have a break in his insurance but knowing him he didn't formally cancel the old policy. This must happen quite a lot though as not too long ago you didn't have to.

[JackDanielsU]

So he called them up after receiving the high quote?

In that phone call he advised them he wasnt going to go ahead with that quote

What needs to be understood is the conversation after that. The advisor should then of gone through the options of how to cancel - ie not proceed with the new quote

Your brother is allowed a copy of that call...he may have to pay a small fee - normally £10. If he wasnt advised how he needed to cancel the policy, when he has clearly stated he doesnt want it, you can use that as levarage..they will have a complaints team, he needs to go to that dept now