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    Just had a Car Insurance policy cancellation fee of £260?!

    I took this policy out 2 months ago, at £540.

    Now I have barely any money refunded to me due to this extortionate cancellation fee.

    They kept saying 'Pro Rata and Admin fees' to me. I left Admiral for like £40 2 months back mid way through policy.

    * The only reason I left them is because they couldnt insure me or my car due to its value price *

    32 Comments

    its normally £50 for a cancellation fee

    Never had to cancel a policy.
    If the terms haven't change since you took out the policy, you had 14 days to cancel for free. So why cancel now?

    have you changed your car ?

    Banned

    Can't make much sense of this.

    Refer to your policy terms, I can't see it being that price tbh!

    Original Poster

    Oneday77

    Never had to cancel a policy.If the terms haven't change since you took … Never had to cancel a policy.If the terms haven't change since you took out the policy, you had 14 days to cancel for free. So why cancel now?



    I had/have a Mini Cooper S 2009 modified. Had to cancel with Admiral previously as they wont cover me with an aftermarket Intercooler

    Found a modified insurance company

    I am now selling said car as its a unreliable piece of garbage.

    I bought a new car (1998 Renault Laguna) as a runaround and its valued less than £750, they wouldnt carry over my policy due to its value so I couldnt even pay the difference.


    Edited by: "darkstryder360" 9th Sep 2016

    darkstryder360

    I had/have a Mini Cooper S 2009 modified. Had to cancel with Admiral … I had/have a Mini Cooper S 2009 modified. Had to cancel with Admiral previously as they wont cover me with an aftermarket IntercoolerFound a modified insurance company I am now selling said car as its a unreliable piece of garbage.I bought a new car (1998 Renault Laguna) as a runaround and its valued less than £750, they wouldnt carry over my policy due to its value so I couldnt even pay the difference.



    Used to work in Insurance underwriting and iirc if they won't cover your change of vehicle they should only charge you pro-rata (not short period rates). Worth speaking to someone higher up imo

    darkstryder360

    I had/have a Mini Cooper S 2009 modified. Had to cancel with Admiral … I had/have a Mini Cooper S 2009 modified. Had to cancel with Admiral previously as they wont cover me with an aftermarket IntercoolerFound a modified insurance company I am now selling said car as its a unreliable piece of garbage.I bought a new car (1998 Renault Laguna) as a runaround and its valued less than £750, they wouldnt carry over my policy due to its value so I couldnt even pay the difference.


    If all else fails, go here, but try contacting the CEO first.
    Edited by: "qbs" 9th Sep 2016

    Original Poster

    fuzzydunlop

    Used to work in Insurance underwriting and iirc if they won't cover your … Used to work in Insurance underwriting and iirc if they won't cover your change of vehicle they should only charge you pro-rata (not short period rates). Worth speaking to someone higher up imo



    I don't even understand fully what pro-rata is.

    I always try and compare it to phone contract, where if you cancel it half way thru you pay the rest.

    But for this, I have already paid my full amount and these extra bull crap charges mean nothing to me.

    darkstryder360

    I don't even understand fully what pro-rata is. I always try and compare … I don't even understand fully what pro-rata is. I always try and compare it to phone contract, where if you cancel it half way thru you pay the rest. But for this, I have already paid my full amount and these extra bull crap charges mean nothing to me.



    ​Don't mean to sound harsh, but you should of checked before changing vehicles, and also read the small print before taking out your policy.
    I've had policies before where they would of charged 90% of the outstanding balance pro rata, so your £260 doesn't sound to unfeasible!

    darkstryder360

    I don't even understand fully what pro-rata is. I always try and compare … I don't even understand fully what pro-rata is. I always try and compare it to phone contract, where if you cancel it half way thru you pay the rest. But for this, I have already paid my full amount and these extra bull crap charges mean nothing to me.



    It's a long time since I worked in insurance but basically it means that you only get charged for the specific number of days cover that has been provided. (excluding cancellation fees).

    Example - 60 days cover from a premium of £540 would be approx £89. No idea what cancellation fee that put on top of that but I can't see it being more than £50 (it used to be £25 when I was doing it). Provided you've not made a claim you should be looking at least £350 upward return in my opinion (based on 60 days cover)
    Edited by: "fuzzydunlop" 9th Sep 2016

    Dyslexic_Dog

    ​Don't mean to sound harsh, but you should of checked before changing v … ​Don't mean to sound harsh, but you should of checked before changing vehicles, and also read the small print before taking out your policy.I've had policies before where they would of charged 90% of the outstanding balance pro rata, so your £260 doesn't sound to unfeasible!



    It's not like he's gone out and bought a heavily modified vehicle. Pro rata means a proportional amount based on the length of time. 90% is a not pro rata and is what used to be called short period rates for cancelling your policy. In this instance he's being forced to cancel so should be given a pro rata refund (subject to no o/s claims)

    Did you get a cashback via TCB or Quidco ? That might partially explain it , as they would obviously reclaim that .

    darkstryder360

    ...I had/have a Mini Cooper S 2009 modified... I am now selling said car … ...I had/have a Mini Cooper S 2009 modified... I am now selling said car as its a[n] unreliable piece of garbage.I bought a new car (1998 Renault Laguna)...



    Confused.com

    Some companies charge a percentage of the premium if cancelled early 3/6/9 months etc

    fuzzydunlop

    It's not like he's gone out and bought a heavily modified vehicle. Pro … It's not like he's gone out and bought a heavily modified vehicle. Pro rata means a proportional amount based on the length of time. 90% is a not pro rata and is what used to be called short period rates for cancelling your policy. In this instance he's being forced to cancel so should be given a pro rata refund (subject to no o/s claims)



    ​He's not being forced to do anything, he chose to purchase another vehicle without checking with his insurance company, I don't mean to criticise the op but he should of checked first.

    I dont want to be the hindsight guy, but really these things are usually clearly outlined when taking insurance out, next time maybe check this stuff out first
    Edited by: "haritori" 9th Sep 2016

    Original Poster

    Dyslexic_Dog

    ​He's not being forced to do anything, he chose to purchase another v … ​He's not being forced to do anything, he chose to purchase another vehicle without checking with his insurance company, I don't mean to criticise the op but he should of checked first.



    Life lesson. I have owned 3 cars in my life time. This 3rd happens to be so cheap many people refuse to insure it.

    Honestly something I didn't know before, just assumed all cars were insureable.

    Original Poster

    ceres

    You do seem to get yourself in a pickle with motor insurance.Have you … You do seem to get yourself in a pickle with motor insurance.Have you read the cancellation terms on your current policy?



    Yeah... I have now moved to a company with suitable opening hours

    I will be reading up on them

    Original Poster

    fuzzydunlop

    It's a long time since I worked in insurance but basically it means that … It's a long time since I worked in insurance but basically it means that you only get charged for the specific number of days cover that has been provided. (excluding cancellation fees). Example - 60 days cover from a premium of £540 would be approx £89. No idea what cancellation fee that put on top of that but I can't see it being more than £50 (it used to be £25 when I was doing it). Provided you've not made a claim you should be looking at least £350 upward return in my opinion (based on 60 days cover)



    That's honestly what I was expecting but they have taken their fair share of it.

    If I make a formal complaint, regarding being unhappy with said cancellation fees, would they ever give a break down such as the one you have done? So I can query where all my money has gone.

    darkstryder360

    That's honestly what I was expecting but they have taken their fair share … That's honestly what I was expecting but they have taken their fair share of it. If I make a formal complaint, regarding being unhappy with said cancellation fees, would they ever give a break down such as the one you have done? So I can query where all my money has gone.



    Maybe go through resolver?

    resolver.co.uk/

    Dyslexic_Dog

    ​He's not being forced to do anything, he chose to purchase another v … ​He's not being forced to do anything, he chose to purchase another vehicle without checking with his insurance company, I don't mean to criticise the op but he should of checked first.



    I agree it may have been prudent to check with his insurance before purchasing. However he hasn't requested cancellation. If it's an unacceptable vehicle on his existing policy they should offer a pro rata refund or/and provide an alternative quote for a new one.

    Just my opinion of course

    darkstryder360

    That's honestly what I was expecting but they have taken their fair share … That's honestly what I was expecting but they have taken their fair share of it. If I make a formal complaint, regarding being unhappy with said cancellation fees, would they ever give a break down such as the one you have done? So I can query where all my money has gone.



    I'd personally get the policy booklet to hand when you ring them so they can go through it with you. Did they offer you an alt quote for a new policy? (which should still result in a pro rata refund from your existing one). This is just my opinion based on experience and each company are different.

    If all else fails The Financial Ombudsman Service

    Original Poster

    fuzzydunlop

    I'd personally get the policy booklet to hand when you ring them so they … I'd personally get the policy booklet to hand when you ring them so they can go through it with you. Did they offer you an alt quote for a new policy? (which should still result in a pro rata refund from your existing one). This is just my opinion based on experience and each company are different.If all else fails The Financial Ombudsman Service



    Nope just flat out refusal to cover the car, no alternative, other than cancellation.

    Or continue to pay insurance on a car that isn't moving.

    I used to work in car insurance - dark days! If you have any optional extras such as breakdown, legal expenses etc these are normally non-refundable so if you were paying by direct debit and cancelled you would have to pay the remainder of those optional extras in full on top of the cancellation fee. £260 still seems a lot though unless you got every optional extra they were offering!

    Original Poster

    Jonny_K

    I used to work in car insurance - dark days! If you have any optional … I used to work in car insurance - dark days! If you have any optional extras such as breakdown, legal expenses etc these are normally non-refundable so if you were paying by direct debit and cancelled you would have to pay the remainder of those optional extras in full on top of the cancellation fee. £260 still seems a lot though unless you got every optional extra they were offering!



    I just got regular insurance. Didn't need breakdown or anything like that, didn't request anything other than fully comprehensive.

    I never paid DDebit either. It was all paid out in full 2 months back.

    darkstryder360

    I just got regular insurance. Didn't need breakdown or anything like … I just got regular insurance. Didn't need breakdown or anything like that, didn't request anything other than fully comprehensive.I never paid DDebit either. It was all paid out in full 2 months back.



    That definitely seems excessive then. I'd ask for a breakdown of how they've come to that figure, any reasonable insurance company would oblige you but by the sounds of it this may not be a reasonable company.

    darkstryder360

    I just got regular insurance. Didn't need breakdown or anything like … I just got regular insurance. Didn't need breakdown or anything like that, didn't request anything other than fully comprehensive.I never paid DDebit either. It was all paid out in full 2 months back.


    who is the insurer?

    Cancellation fees are always in the contract, so dig that out and look for the specific conditions that would make up this amount.

    If you can't find it them request that they provide you a detailed invoice, clarifying all of the charges in line with the contract entered into.

    I would say that they for this amount they are trying it on, so you will have to push to get a reasonable figure to pay.

    You can always try the Financial Ombudsman if you need further advice.

    financial-ombudsman.org.uk/

    Original Poster

    Jonny_K

    That definitely seems excessive then. I'd ask for a breakdown of how … That definitely seems excessive then. I'd ask for a breakdown of how they've come to that figure, any reasonable insurance company would oblige you but by the sounds of it this may not be a reasonable company.



    I have added the cancellation fees page here, below. To me it's worded very confusingly maybe it's because I just woke up, but I can't make out whether they TAKE 40% after 2 months, GIVE 40% after 2 months, or vice/versa with 2 months left of the contract.

    http://imgur.com/download/0axf9Tp

    reddit

    Cancellation fees are always in the contract, so dig that out and look … Cancellation fees are always in the contract, so dig that out and look for the specific conditions that would make up this amount.If you can't find it them request that they provide you a detailed invoice, clarifying all of the charges in line with the contract entered into.I would say that they for this amount they are trying it on, so you will have to push to get a reasonable figure to pay.You can always try the Financial Ombudsman if you need further advice.http://www.financial-ombudsman.org.uk/



    Thanks this seems to be the most popular webpage to pop up for legal advice.

    The insurer didn't seem very happy last weekend when I emailed asking why their closing hours are 12 midday Saturday to 9am Monday, the CEO (or whoever) replied back saying that his staff needed time off sometimes!

    How am I to know your staff level. And I thought weekends were the busiest time to buy cars and they aren't open to cater to it...

    chocci

    who is the insurer?



    They're called Brentacre.
    Edited by: "darkstryder360" 11th Sep 2016

    from quick glance at table doesn't that say - you have 2 months cover you pay min 40%
    +admin could tie in
    Edited by: "brilly" 11th Sep 2016

    brilly

    from quick glance at table doesn't that say - you have 2 months cover you … from quick glance at table doesn't that say - you have 2 months cover you pay min 40%2month 1 day would be 50% etcboth of these +admin could tie in


    Yep, fee looks about right to me so a lesson learnt for us all here. Check the cancellation fees before purchasing.
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