Insurance cancellation costs

[hammerman]

I was with budget insurance for my car until i got a better deal with Admiral. Unfortunately, the policy with budget had just started when i got the new car and new deal with Admiral and therefore had to cancel it.

The old Budget insurance had only been going for about 10 days when i cancelled and the robbing thieves has charged me �138 for cancelling.....which is about half the original premium !!!!!

Now i expected a �40 odd cancellation fee etc but this is daylight robbery. I presume it was all in the small print which i never read but is this an unreasonable charge ?

They've passed the debt on to a company as ive refused to pay it out of principle. This debt recovery company are threatening to send the big boys round now....should i fight it ?

Many thanks

[kempie]

Provided the policy was cancelled outside of the 14 day cooling off period there is nothing to stop the insurer from keeping the full amount.

http://www.theanswerbank.co.uk/Motoring/Questi on706585.html

[hammerman]

Thanks for that. The budget insurance was a continuation. would the 14 day cooling off period still apply ? I was also paying by installments so there wasn't a case keeping "the full amount".

Thanks again

[bednobs]

hiya, in the case of paying in installments, the full amount would have become immediately due therefore i am guessing that 138 is less than the full amount. I agree, it's sh!t, but i dont think you have any case at all not to pay it

[kempie]

The 14 day cooling period is the later of:

i) the date the policy commenced
ii) the date the policy documents were received by you.

"keeping the full amount" also means "expect full payment of the premium" (although this is highly unlikely in practice there is nothing illegal in this).

[kempie]

^ The 14 day cooling off period starts the later of ...