Can they do this?

**cadencealex** · 19th January 2009 10:24

Insurance company charged £45 for cancelling the policy because the owner no longer had the Car.

Can they do this.

Insurer was Swinton/Budget.

Thanks.

If not, what letter can be sent?

**Mossycat** · 19th January 2009 11:03

We would need more information to advise you better, but, for an insurance policy to exist the property must exist, the person insuring it must have insurable interest icon

(ie that is to say if something happened to the item then the policy holder would be finacially worse off) and a few other factors.

Answer these questions and we may be able to advise you better

Was the policy paid in full for the year or was it on instalments

Was the car sold

Did you notify Swinton, or did they find out some other way

Mossy

**cadencealex** · 19th January 2009 11:19

Thanks Mossy.

Swinton was notified that the Car was no longer owned. They did not receive notice.

The insurance was payable in installments every month.

The Car was passed to another member in the family.

**Mossycat** · 19th January 2009 11:39

Assuming then that the policyholder is not replacing the vehicle with another one and letting the policy carry on then yes they can charge a cancellation fee. Basically you agreed to a 12 month contract of insurance, payable monthly, part of that contract will no doubt have had a cancellation clause and a charge attached to it.

Since the policyholder no longer owns the car they have no insurable interest icon

in it, therfore the policy should be cancelled, and if a fee is part of the contract then you accepted that when you agreed to accept their offer of insurance.

Mossy

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