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A&A charging £50 fee for cancellation before the policy has even started.


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I got a quote from A&A (Allan & Allan) for car insurance. I liked the price and so paid a £150 deposit. A few days later the documents for the credit agreement (I was intending to pay by monthly instalments) and the proposal arrived. Before I signed I decided to give my current insurer a chance to better A&A's quote and they came pretty close so I decided to stay with them.

 

I called A&A and they said they would cancel the policy but :-

 

-They would charge me £50 for admin/costs/work done so far

- It would take 6 weeks to get it back, but they could reduce this to 2 weeks as as the policy hadn't started.

 

My question is: Can they do this? I haven't signed anything. When I paid my deposit the operator did read a bunch of waffle out very quickly and of course I don't remember anything about a £50 cancellation fee. Even if I did hear that and say "yes" to it can they still charge me without a signature?

 

I'm very peeved about this, especially the as I intended to use that £150 to renew my policy with my current insurer in 5 days time.

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Yes they can make a charge of up to £50 per previous FOS rulings on this. So you will get back £100 of the deposit you paid.

 

Insurers/brokers have been making such charges to cover admin for quite a few years. It is not something I like personally, but it is allowed.

 

Not all Insurers make these charges where the cover has not started yet. I think the RBS Insurances companies don't charge. But most brokers will make these charges.

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