Hey all

Should an insurance company forfeit any charges to a policy for cancelling it, if the reason is outside the policyholders control or it doesn't fit in with the insurers underwriting criteria ?

Cheers

TG x

If the insurance company did not pay a claim, and you were completely above board in your dealings with them, then my opinion is they should return a pro-rated amount if the cancellation was their decision. You didn't say how far into the policy period you were, though it sounds like the charges were enough for you to question a refund.

really depends on the reason and how long you have been with that company and if you have any other products with them (home ins,pet,travel etc) they may write off the cancellation charge. If policy has to be cancelled for underwriting reasons,i.e you have a new car they wont insure or a driver etc there should be no chargres.

Not Swinton by any chance?

Hey

No it isn't Swinton,

I am taking the car to Spain as I am emigrating and their UW criteria only covers UK and the surrounding Jersey/Guernsey islands etc

I am currently in my 2nd consecutive year with no claims in the current period.

They have said the fee is £27.50 and whilst it doesn't break the bank, it is not my fault that they won't cover vehicles outside the UK on an annual basis - and before anyone asks at the time of renewal I did not know that I was leaving the UK.

The motor insurance is the only policy that i hold with them. It is also paid on a DD basis and I also question how they would chase for this fee as I have cancelled the card where they took the initial deposit and also I will be closing the bank account. I will not be giving anyone of zero importance a forwarding address either

they should not be charging as they are unable to continue to cover as you no longer meet the under writing criteria. They should cancel on a pro rata basis.

You bought a contract to cover your vehicle in the UK for 12 months. If you don't cancel then your vehicle will still be covered in the UK. The insurer is fulfilling their obligations.

That you choose to leave the country is not their problem - they can still provide you with cover in the UK as per the contract you agreed to.

So sorry but I don't think that you are entitled to a reduction / waiver of the cancellation fee.

their u/w criteria proberbly also states that "the PH must reside in the UK" as they are emmigrating they do not meet the criteria and should therefore cancel.

Based on the additional information, I'm afraid they are morally correct to charge you. The policy is really being cancelled at your request because you no longer need the cover.

However, I think it's important to return premiums in these situations as a gesture of goodwill. If I were you, I would make a complaint. There's no harm in that.