Hello all, new to this forum and after some friendly advice.

I am currently insured with Kwik Fit since July 2009 and am paying quite a large amount each month (been driving 6 months and 23yo).

Basically i am very fed up of paying such extorinate prices every month and know that i can get insurance a hell of a lot cheaper else where.

I would like to cancel early, but i hear a lot about people being charged the rest of their premium plus admin and cancellation charges.

Basically, has anyone else dealt with Kwik Fit and cancelling insurance early? I would like to be armed with as much info as possible before i charge in there and attempt to cancel.

Thank you.

Hi. Can you tell us what it says in the policy document about cancelling please?

Hi there. It says:

'If no claims have been made (and there are no pending claims) your insurer will allow a proportinate refund of premium from the date of cancellation. If any claims have been made (or any pending claims), no refund of premium will be allowed.

If you are paying your insurance by installments and you cancel your policy after a claim (or an event that may lead to a claim), you must pay the balance of the premium, even if you no longer have the vehicle'.

I am paying by installments, but haven't made a claim. Doesn't quite make sense to me!

I hope someone like Mossycat or Insurance Guy will clarify. I think what they may mean is that if you pay up-front for the year and don't claim, they will refund the balance if you cancel part way through.

I pay my car insurance monthly and the way mine works is that a finance company pay the premium in advance for the year, and I repay them month by month.

Subject to what the others say, you may have to live with this for the next 6 months and then cancel at the renewal date in July.

Sorry this isn't what you want to hear, but as I say I would like to know what one of the insurance people thinks.

I hope someone like Mossycat or Insurance Guy will clarify. I think what they may mean is that if you pay up-front for the year and don't claim, they will refund the balance if you cancel part way through.

 

honeybee is correct in her understanding, basically the insurers are saying that if you pay for a full years insurance and don't make a claim then they will refund a percentage of the premium that you have paid.

Having said that, don't expect it to be a pro-rata refund (ie if you paid £120 for a years insuarnce and cancel half way through the policy don't expect it to be a full 50% refund), because they will factor in things like administration costs and possible commissions that may have been paid.

Additionally, some Companies do also have a cancellation fee that would also be deducted from any refund.

In the OP's case, they are paying by monthly instalments but they haven't made a claim this year, so the OP can cancel the policy (ie not have to pay all the rest of the instalments), but they may be asked to pay a cancellation fee.

The other thing the OP needs to consider is the No Claims Discount, if they cancel part way through a year then they won't get any NCD added for this claim free year, so if there's only a few months left on the policy it might be worth keeping it just to get the additional NCD at renewal which will make future premiums cheaper.

Having had a brief read up on KFIS it seems they will charge you a flat fee of £50 for cancelling your motor policy, and that is after the refund (probably non pro-rata) from the actual insurer concerned.

Mossy