Hi

I'd like to adopt the 'car insurance cancellation' thread to discuss my current situation with Elephant Insurance. Recently I hit diesel on a corner which led to my car going off the road and being considered by Elephant uneconimical to repair. I accepted fault for the incident, which occured within 30 days of policy renewal, and am in process of discussing settlement. Thus far I have been offered settlement. I have not agreed on the sums yet offered as they total less than half market value, which I have proven through provision of ten other similar models for sale/sold.

Amidst this however, I recently received a letter demanding in excess of £1200 in cancellation charges, exceeding the cost of the policy in the first place. It was explained as Standard rate for this period of cover'. I am not clear on the cover I am paying for, nor am I aware of having cancelled my policy, unless it is something they have done in order to consider the car written-off; as I was within 30 days of renewal date and not eligible for rebate, it makes no difference to allow the policy to lapse.

This was accompanied by a demand to return the insurance certificate. The outlandish figure leads me to suppose this is an attempt to harass me into accepting their next settlement offer. What would be the best way to dispute this.

Thank you for your help.

Read this link.

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

In regard to the premium, you just have to pay the full years premium, with no cancellation fees or charges. The FOS will confirm this, if you gave them a phone call.

Welcome Vanitas. Adoption of the thread means that you must feed and make tea for all those who visit.

It's not unusual for a policy to come to an end when a claim is made, but the fee they are asking is for the policy holder who cancels it mid term, so I would certainly argue the point there that it wasn't you who cancelled, it was them so they can send you a £1,200 cheque by return.

If you hit diesel, it would be a council problem, but only if you can show that the spill was reported to the council before you hit it.

The first offer is always low, but you don't have to accept it and you shouldn't. You should write, not phone, and ask for a more realistic offer quoting the buying prices you have found. Of course, the cars would have to be very close to the condition and mileage of your own.

I've moved you to your own thread so it don't get bogged down.