car insurance rant. am i being ripped off?

22 replies
Found 3rd Nov 2009
6 weeks ago I got offered a cheap van, bought it and insured it, My premium was £665 for the year so i paid outright for a year.

There was only 6 week T&T on the van and i had a feeling it wouldnt pass easily, It didnt and was going to cost me 700 quid to keep on the road (I only paid £250 for the van) so i scrapped it, called my insurance today and they have offered me £330 refund, this means that I have paid £335 quid for 6 weeks insurance, is this right?

The reason I paid outright is 2 years ago I was in the same situation, bought a cheap van which didnt have much life left so thought it was best to pay monthly then could cancel at any point, when the inevitable happened i cancelled and was hit with a £180 admin/ underwriters/ fee after just 2 months insurance.

I can understand if they want to charge me for 2 months then a cancelation fee (£50 apparently) but for some reason they seem to think they can take my eyes out.

Before you ask I cant afford a decent van so dont even suggest it!
to make matters worse i left a key in the van, so i went first thing this morning to retreive it and my transit van was the same size as a shopping trolley. needless to say i need to get a new key cut.

22 Comments

You should Threaten them with the insurance ombudsman :thumbsup:

Original Poster

renown;6773743

You should Threaten them with the insurance ombudsman :thumbsup:



my friend has suggested that! I will follow that up, cheers mate, rep added.

they will have charged you a cancellation fee and taken this off any amounts due to be refunded...

still, this amount for 6 weeks sounds excessive. Tell them you want to make a formal complaint and ask them for the complaints procedure and tell them that you are going to take your complaint to the Financial Services Authority (for which the insurance company will get charged £500 for the FSA to deal with a complaint from them).

Also mention to the insurance company that they have not met their FSA Treating Customer Fairly obligations and that you will be highlighting this to the FSA.

rockerfella20;6773764

my friend has suggested that! I will follow that up, cheers mate, rep … my friend has suggested that! I will follow that up, cheers mate, rep added.



Good luck mate & thank's:)

StevenA2000_uk;6773776

they will have charged you a cancellation fee and taken this off any … they will have charged you a cancellation fee and taken this off any amounts due to be refunded...



Oih ! butt out you :whistling:

What does your contract with them state?

Original Poster

StevenA2000_uk;6773776

they will have charged you a cancellation fee and taken this off any … they will have charged you a cancellation fee and taken this off any amounts due to be refunded...



yeh, if they say 2 months insurance, (works out at about £55 a month) then the £50 cancellation fee so i recon should be £160.

How come you can't a afford a decent van but can afford to fork out eyewatering premiums of £665 a year up front?

Would you not be better off freezing the policy until you get another van?

rockerfella20;6773840

yeh, if they say 2 months insurance, (works out at about £55 a month) … yeh, if they say 2 months insurance, (works out at about £55 a month) then the £50 cancellation fee so i recon should be £160.



StevenA2000_uk;6773776

they will have charged you a cancellation fee and taken this off any … they will have charged you a cancellation fee and taken this off any amounts due to be refunded...still, this amount for 6 weeks sounds excessive. Tell them you want to make a formal complaint and ask them for the complaints procedure and tell them that you are going to take your complaint to the Financial Services Authority (for which the insurance company will get charged £500 for the FSA to deal with a complaint from them). Also mention to the insurance company that they have not met their FSA Treating Customer Fairly obligations and that you will be highlighting this to the FSA.:)



have you made a complaint yet? :?

You are due back £427 as per your contract with them (assuming you mean exactly 6 weeks). Your first step is to state that and see what they say. You can't go to the ombudsman just yet, it is too early. Your next step would be to put it into writing, stating what you believe you owe and questioning their figure. They haven't a leg to stand on if what you have stated is correct.

Original Poster

pghstochaj;6773821

What does your contract with them state?



had a brief look over it, im insured by axa through direct choice, through compare the market.
my documents are from direct choice and say something along the lines of, 'our policy carries a £50 cancellation fee but practices vary between insurers'

rockerfella20;6773933

had a brief look over it, im insured by axa through direct choice, … had a brief look over it, im insured by axa through direct choice, through compare the market.my documents are from direct choice and say something along the lines of, 'our policy carries a £50 cancellation fee but practices vary between insurers'



You need your specific document then

pinkleponkle;6773854

How come you can't a afford a decent van but can afford to fork out … How come you can't a afford a decent van but can afford to fork out eyewatering premiums of £665 a year up front?



Hey, try my sons, £4027! :w00t:

Original Poster

pinkleponkle;6773854

How come you can't a afford a decent van but can afford to fork out … How come you can't a afford a decent van but can afford to fork out eyewatering premiums of £665 a year up front?



I dont get paid for taking a van to work as i have a van provided but i dont want to but a car as there impractical in my line of work so just need a mode of transport, but just for comuting and for small private jobs. if that makes sence?

rockerfella20;6773764

my friend has suggested that! I will follow that up, cheers mate, rep … my friend has suggested that! I will follow that up, cheers mate, rep added.



renown;6773743

You should Threaten them with the insurance ombudsman :thumbsup:



I agree, we've had many problems with insurance at our house, first you need to call the ins companys complaints dept, and wait 8 weeks before the Ombudsman can do anything.. however, they soon get their act together once you get them involved.

rockerfella20;6774006

I dont get paid for taking a van to work as i have a van provided but i … I dont get paid for taking a van to work as i have a van provided but i dont want to but a car as there impractical in my line of work so just need a mode of transport, but just for comuting and for small private jobs. if that makes sence?



It's a shame you can't use the work van, I have a van provided by my work and am allowed to use it for whatever I want and they pay the fuel.

Original Poster

jtx;6773870

Would you not be better off freezing the policy until you get another van?



thought about that but im in a bit of a motoring financial rut at the moment and cant guarentee when i will next buy a van so might be a waste of money. cheers anyway.

Original Poster

StevenA2000_uk;6773881

have you made a complaint yet? :?



I spoke to the girl on the phone when i was cancelling and she was pretty understanding but kept saying 'I will speak to my supervisor' but she kept coming back with 'my supervisor says thats all we can do'

Original Poster

icecreamwoman;6774033

I agree, we've had many problems with insurance at our house, first you … I agree, we've had many problems with insurance at our house, first you need to call the ins companys complaints dept, and wait 8 weeks before the Ombudsman can do anything.. however, they soon get their act together once you get them involved.



cheers. will look into that.

Original Poster

pinkleponkle;6774081

It's a shame you can't use the work van, I have a van provided by my work … It's a shame you can't use the work van, I have a van provided by my work and am allowed to use it for whatever I want and they pay the fuel.



I can use it but Its shared between 3 people so dont get to use it as 'my own' so to speak.
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