Car insurance cancellation rip off !

[gavroche]

Our daughter bought my car last Saturday and she has insured it in her own name. I have also informed the DVLA of the change of ownership. I have 8 months left on my own insurance so I phoned the company hoping to get a refund as I had paid a year in advance. Their reply was a £60 cancellation charge plus 15% of the 8 months left !! .
How can they do that? It takes 2 seconds to cancel it by just pressing a button on their keyboard.
The way they work it, I could have ended up owing them money !
Anyway, after a bit of a discussion, they agreed to cancel my policy at midnight tonight and call it quit.
I am still out of pocket as I am losing 8 months worth of premiums.
The whole business is a rip off really and should not be allowed. .
I am disgusted with the whole thing really but there is nothing anyone can do . It is just sheer profiteering at our expense.

 

[DCLane]

It's insurance companies - we're easy pickings I'm afraid. Personally I'd have simply left the 8 months to run if you would otherwise end up out of pocket.

 

[vickster]

Could you not have suspended it and then transferred to new/other car (if that insurance policy is coming up for renewal?)

But yep that’s insurers for you. Probably in the Ts & C’s you agreed to when taking out the policy

 

[I like Skol]

T&C's. You 'knew' what the deal was when you signed up so no use crying about it now. Those insurance companies struggle enough as it is without giving money away

 

[vickster]

If not in Ts & Cs, take it up with the Ombudsman
The issue often is the companies with the cheaper headline premium rates clobber you if wanting to change / cancel (Admiral are particularly bad it seems especially if you need to do anything by phone)

 

[gavroche]

T&C's. You 'knew' what the deal was when you signed up so no use crying about it now. Those insurance companies struggle enough as it is without giving money away

It is all over now but I intend to play their own game and also charge an administration fee if any one official ask me to alter some details on their records.

 

[T4tomo]

Should have just named her as the main driver on your policy and transferred it over on renewal???

 

[Drago]

Having had my fingers burned with this I always read up on the various fees.

Its worth writing a letter of complaint though, and if that doesn't work then a complaint to the Financial Ombudsman. Under A.B.I. rules the fees for various changes and cancelletation are only supposed to reflect the cost of doing the deed. They're not allowed under the association rules to use it as a profit opportunity, although its clear half of them do.

 

[Brandane]

The worst "deal" I had with car insurance was a few years ago now, and sadly I can't remember the company or I would certainly name and shame; but basically I was quoted the annual premium which was acceptable, and elected to pay by monthly direct debit. Only once it was all set up did they inform me that they would take 10 monthly payments to cover that years policy, and then take the same payment in months 11 and 12 as payment towards the following years policy! I can't remember the full details now but suffice to say I got it cancelled and paid them nothing. Otherwise I could foresee a huge rise in the charge in year 2, of which I would have already made 2 payments towards, which they would have made very difficult to claim back.

 

[Brandane]

It is all over now but I intend to play their own game and also charge an administration fee if any one official ask me to alter some details on their records.

I might try this with my local council when they insist on sending out a demand for me to update the electoral register every year. Or the power suppliers who did away with employing meter readers and then get us to do the job for them every month.

 

[Drago]

The moment I enter into a dispute with any firm I start charging them for my time and expenses, and the small claims courtmusually looks favourably on reasonably claimed expenses of this sort.

 

[vickster]

I might try this with my local council when they insist on sending out a demand for me to update the electoral register every year. Or the power suppliers who did away with employing meter readers and then get us to do the job for them every month.

They’ll fit a smart meter to do that if you don’t have the time.
electoral register a legal requirement