Can my car insurance company charge this?

[schott19]

Hi,

Just registered so hello to all!

I purchased car insurance 2 - 3 months ago for £300. I have just bought a new car and to upgrade my insurance will cost me £750 so i decided it would be cheaper to cancel the insurance and start fresh with another company.

However, my current insurer wants to charge me £50 admin plus they say they need to take 40% of the remaining premium leaving me with just £120 refund..

This seems crazy to me considering ive only been insured for a few months and i wondered if they are allowed to do this?

Hope somebody can help me,

Thanks in advance,

Dave

[beccus]

There will be details of cancellation charges etc in your policy wording.

HTH Becca

[Darkangelsdelite]

Most if not all insurance company's now have a cancellation charge if you cancel the policy within the 12 month contract. This varies from company to company so as beccus said, check your policy wording and it will state in there what the cancellation scale is.


DA

[GoldyR]

If you are cancelling the policy mid term, the insurer will deem you to have benefited from 3-months cover (or however you were on cover for) & will automatically deduct that from any premium refund, and yes, most insurers do not charge a cancellation fee which will be detailed in your policy wording. I must say though, you must have upgraded your car significantly for such a premium increase??

[schott19]

Hi All,

Thanks for your responses - i kind of figured that but it still hurts to lose the money and was clutching at straws really!

However, my quote with another company is only £472 with NCB protection so its worth cancelling and taking the hit!.

GoldyR - L reg astra 1.4 (grp 6) to Audi S3 (grp 1 hence massive premium increase with current insurer!

Anyway, thanks again all for your help.

Dave

[buzby]

Just to put your mind at rest, get a quote for your OLD car from your NEW insurers, you'll probably find they offer a better deal that the one you actually paid for! They're in this business to make money, we're just grist to the mill - if we don;t like it, the response is usually 'tough'. Id your new company just as inflexible?