[All] [Generic] insurance cancelling - cost?

[rossdymond3352]

right heres one, why would it cost me 50-60% of my premium to cancel my insurance premium? am i bneing taken to the cleaners?

[C50]

Just cancelled mine as i haven't driven her for months.. same thing happened to me

The lady said that it's cost they don't do short term policies. Plus if you pay for 12months it's normally cheaper so they they some.

[2Crooky]

I only ever pay monthly and have cancelled without quiery a few times.......On occasions insurers have actually said they owe me money

[CosmosblueMR2]

You agreed to it when you signed your policy documents.


If you don't like the terms then best to shop around before putting pen to paper and shelling out your hard earned.

[Neil_turbo]

for you to cancel they usually do charge a much higher percentage than that of the policy you have used. as Frank says the exact details should be in your policy.

Have been caught on this once before. It worked out easier to keep the policy and get the extra no claims.

[rossdymond3352]

hmmm i dont remember anything being said about it

il have to re read everything

[simmo490]

with some insurance companys they go to an external lender, so when u want to pay for instalments, they go to a lender which pay the premium for you, you then pay the loan people,

therefore if you cancell you still need to pay off the loan

simmo

[swin]

the insurance company im with offer a laid up cover so when the car goes away for winter(or most of this year due to crap weather) i get 70% of the premium back for the period not in use but its still fully comp while off the road just in case

[Martin F]

with some insurance companys they go to an external lender, so when u want to pay for instalments, they go to a lender which pay the premium for you, you then pay the loan people,

therefore if you cancell you still need to pay off the loan

simmo

exellent point mate, i was about to let rip about being taken for a ride but this point has made me re-think..

[Baruc]

Historically, if a private motor policy was cancelled in the first 12 months then short period rates would apply - this was to cover the extra administration charges incurred with the setting up of a new policy.

After that (and subject to no claims being made in the current year), policies would be cancelled on a pro rata basis, although an additional broker fee may apply if the policy was purchased via a broker.

These days the majority of underwriters cancel pro rata even in the first year of insurance, although there is still the odd company or two out there still using short period rates.

If you are paying via DDM, then another scale may provide, but this is between yourself and the credit provider, not the insurance company.

Kind Regards
Baruc.

[gnzyza]

If you go through a broker they normally charge a higher cancellation fee, but most reputable direct insurance companies will only charge 1/12th of your premium, i.e 1 months payment.
But it is all in the contract.

I know liverpool victoria and i think virgin still dont charge a canx fee.

[slunk]

The trick is to make them responsible for your cancellation. i.e. politely call up and ask for your insurance policy to be transferred over to the Ultima GTR you've just bought. If they cant insure you on it, they cant penalise you for ending your policy early

[rossdymond3352]

isnt that fraud? lol

[Baruc]

Or if they ask for details to do the change of vehicle for you lol.

Kind Regards
Baruc.

[slunk]

lol well it was only an example. I came across the clause when I bought my tubby. Admiral (my insurer at the time) wouldn't insure me on her so I asked about cancellation fees and was told they wouldn't apply in such a situation. 50 to 60% of your premium certainly sounds like a rip off to me. It'd probably be more economical to just keep the policy if that's the best they can do. Do you mind if I ask who the insurer is?

[Martin F]

right heres one, why would it cost me 50-60% of my premium to cancel my insurance premium? am i bneing taken to the cleaners?

another thought, why dont you just say youve changed your car to a 1000cc mini, probably save you a bomb compared to canceling and then just pick up another years no-claims

[rossdymond3352]

i had my mr2 on there, was costing me 1000 an year.

i changed it to, a vauxhall VECTRA!!!! and they only gave me £100 off the premium, right hang on, am i missing something?

[Martin F]

i had my mr2 on there, was costing me 1000 an year.

i changed it to, a vauxhall VECTRA!!!! and they only gave me £100 off the premium, right hang on, am i missing something?

sounds like they are taking you for a ride, what group of insurance is the vectra and how much is it worth ?

things like this are really out with our hands, you should try getting quotes for the vectra from other companies to decide if they are ripping you off and then if so you just complain to them and who ever else it may concern...at the end of the day i don't think you will be giving this insurance company your hard earned dosh ever again once the policy ceases...

[rossdymond3352]

i wont be matey, elephant qouted me £560 on the vectra, thats in my own name, with my dad as a named driver, sky want nearly double that, and thats with an extra named driver on the policy, my mate, whos 35. if i put him on the elephant qoute its 525!!!

[Martin F]

i wont be matey, elephant qouted me £560 on the vectra, thats in my own name, with my dad as a named driver, sky want nearly double that, and thats with an extra named driver on the policy, my mate, whos 35. if i put him on the elephant qoute its 525!!!

could you not phone the insurance company then wright to them with this information and ask them for a bit of fairness ...lie and say if they give you an improved price you will be a happier customer for years to come

maybe get a slightly improved offer then when the time is right tell them where they went wrong and goodbye...
when i cancelled a policy with Norwich union they charged me one months cover..bit fairer compared to this, which insurance company are you having these problems with ?