Car Insurance-paid monthly

rowbo1071again · 2nd October 2007, 16:21

Quick question here:- I paid my car insurance monthly until my wife had her Motability car from Ford. I have cancelled said insurance as we have 3 years free with the car. The insurance company for the old car still want £37.odd for the car insurabnce? But why ? I had cancelled it.... Phoned them and they said it was a cancellation fee. £37.odd to cancel my own insurance, I don't think so....Help and advice appreciated. They are threatening a debt collector already and its only been a week since I received their letter....Help!

rogerebaker · 2nd October 2007, 16:34

was it direct line

rowbo1071again · 2nd October 2007, 17:02

No Roger it was Admiral mate

beccus · 3rd October 2007, 11:32

Most policies have a cancellation charge written into them, it will probably be documented in your policy document.

Becca

rogerebaker · 3rd October 2007, 14:03

I had exactly the same charge with Direct line and like you they had referred it to a debt collection agency almost before I had time to read the letter.

I ended up paying it but I wasnt V happy

Chesterexpress · 3rd October 2007, 14:19

Look on the bright side, had it been a mobile phone contract, then you would have had to pay the remaining months left on it. Therefore I don't think it is wrong that you have to pay an admin charge to end your insurance contract early.

GoldyR · 3rd October 2007, 17:35

When you enter into a contract of insurance by paying the premium/s, you are effectively agreeing to the terms & conditions stipulated within that contract (i.e. the policy wording/booklet). It is your responsibility to read & understand the terms & conditions prior to entering into this contract, although realistically, not many people do! It will be noted either within your policy wording or on your schedule, that a cancellation fee is applicable if you cancel your policy midterm - & you are therefore contractually obliged to pay it i'm afraid. Next time you set up your insurance, it is best to ask whether a cancellation fee will be charged if you cancel midterm, but you will find that most insurers do charge this nowadays.

indebtstudent · 3rd October 2007, 22:20

RAc want to charge me £75 - the total premium was only just over three hundred.

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