Policy cancellation fees - can they charge this?

[sainth2]

I have just cancelled my car policy with norwhich Union because I no longer have my car. I was told that I would have to pay a cancellation charge of £52. Is this right and fair? I pointed out that I had been a loyal customer for years and as soon as I buy my new car this fee will ensure that I do not return my custom to them. Strikes me they are shooting themselves in the foot but i am still left with this bill for cancellation, and how does pressing a cancel button on the computer cost £52.00 hmmm?

[harrythehawk]

You need to check your Policy Terms and Conditions re cancellation, however an Insurer may only obliged to return premium if it is they who cancel the Policy, are you just changing your vehicle in which case just transfer the cover with them ?

[benjee]

The cancellation fee is outlined clearly in all documentation which is sent to you prior to your renewal. These are part of the terms and conditions which you should agree with prior to renewal, as you renewed then you confirmed agreement.
You more than likely would also have had a charge for time on risk upto the cancellation date.
If you are likely to replace the vehicle before the policy would have run out then NU can suspend cover and transfer it to the new vehicle when required. You would still have to pay the policy as usual but would get a refund for the time on suspension once you re-instated cover.