Cancelling Car Insurance

[rosyposy]

Is it usual to charge a fee for cancelling car insurance (in this case £50) and yet not offering a refund for the three months left to run and of course paid for - but I suspect it is.......get you all ways don't they? :0(

[woofgang]

My understanding is that usually you get a refund provided you haven’t claimed during the year....but yes there often is a cancellation fee.

[ummmm]

In my experience you should get a refund. £50 fee is very steep as well.

[twix123]

You signed a contract to insure your car for a year, but you wish to terminate your contract early. The premium you paid would have been based on cover for the whole period of a year. Short term rates, even for nine months, are proportionately more expensive than the annual premium (not just three quarters) and would probably be the same as the premium you paid, especially when any administration fee is included.

[TheChair]

Why not just tell them you've changed your mind and wish to keep the insurance, thus saving 50 quid?

[douglas9401]

Don't cancel, let the cover run it's course. Just make sure you're not down for automatic renewal.

[ToraToraTora]

Yes, quite normal, the thing a lot of people forget is that insurance is almost always an annual contract. If you are allowed to pay monthly that is merely a concessional device to spread out the payments, within which will be T&Cs for charges and refunds.

[ummmm]

I've always paid my insurance in one lump sum and I've always been assured I will be refunded if my car dies.

[bhg481]

I've just had my renewal notice which also quotes the cost for cancelling and making alterations to the policy.

[gingejbee]

This Which? table shows you the best and worst insurers when it comes to charging "fees"...

http://www.which.co.uk/money/insurance/reviews-ns/car-insurance/car-insurance-add-ons-fees-and-charges/

[johnny37]

Yes. You will be refunded pro-rata. 1x6months + 1x3months is probably more than 12months cover. As said above, let it run and save yourself 50 quid.

[rosyposy]

Thank you for all the replies and advice,thank you gingbee for your link too.Unfortunately I'm not a member so can't say if my provider is up there. I am loath to name them on here so 'morethan' that I'm not prepared to say -rofl
I think I will leave it and save my 50 quiddies as a few of you have suggested so thank you all again-rosy X

[ummmm]

Yep...they're on there and say £50 cancellation fee.

[rosyposy]

Thank you ummmm (how did you know who I was with :0)?

[gingejbee]

rosy...there's lots on the Which? site that you don't need to be a member to access...this table included!

[bhg481]

Tjhe other advantage of letting it run out without cancelling is that you will get a renewal notice giving the no-claims that you're entitled to - useful if you come to re-insure within the next couple of years.

[furrypusscat]

Yes they are within their rights to make a charge for cancellation for administration purposes if it is outside the 14 day cooling off period. It is normal to get a refund as stated before provided you have not made or have an existing claim. This is assuming that you paid the whole annual amount at the start and did not have it on direct debit. If the latter then you just cancel your direct debit and no refund would be due as you are paying monthly amounts which would cancel out when you cancel the insurance.

[furrypusscat]

With regards to proof of no claims bonus, you have the right to ask for and they have to furnish you with that proof assuming you have held insurance with no claims during the period.

[rosyposy]

The first time I tried your link gingejbee i couldn't see the names of the providers altho' I could see everthing else but this time it opened properly and I see that mine is in the list of worst providers for charges, very handy list I will bookmark it thank you. Good point too bhg thank you.

[rosyposy]

Thank you too furrypusscat