 Insurance cancellation charge - put me into debt with Devitt!
Hi, I wonder if anyone can advise me please.
I took out motorcycle insurance policy in January 2008, paid for the whole year upfront, about £160.
I got knocked off my bike in April, and didn't use it much after that as I had a baby in July.
In October I thought I might as well cancel it and phoned Devitt to ask them how much I might get back. The woman told me she couldn't tell me how much I'd be due but that they have a £40 cancellation fee.
I'm not entirely plugged in brainwise at the moment, having had a baby recently and didn't bother to work it out myself, I just signed the cancellation forms. I didn't imagine that I would end up owing them money.
I was shocked when I got a letter saying I owed them £27. It seems beaurocracy gone mad, just for the sake of me signing a form.
Devitt is threatening legal action unless I pay it but I don't see why I should pay them. I'm so cross with myself for signing the form but it does seem entirely unfair for them to charge me £27 on top of the whole year's insurance costs.
I have read that they charge cancellation fees to cover their admin costs.
But for them to charge more than the policy itself - are they allowed to do that?
Please can anyone help? Many thanks!
Emma | 
