buget car insurance rip off

[schrodingers cat]

hi anyone out there know about cancelling car insurance ? i`ve cancelled with buget they have taken the cancellation fee out of my bank and sent me my no claims proof but now my new insurers are telling me the policy is still active.when i cancelled the girl said something about me having to pay them £350 but it was one of those call centres from abroard and i could only understand half of what she was saying is this just insurers trying to rip the punters off or have they got a legal claim to this £350

thanx

s c

[PGH7447]

depends on whether you took out the insurance for the whole year on a pay monthly plan, and how far into the year you are

[schrodingers cat]

it was a whole year on the monthly and i cancelled after six months i realise they are going to try and get money off me but can i dodge it £350 seems very unreasonable for fobbing them off cos their quote for my new car was £1000 more than their compeditors,cant see how they can still say my policy is active when i have it in writing its cancelled and i`ve paid for the pleasure

s.c

[nelson80]

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Edited November 19, 2009 by nelson80

[nish40]

same here with Budget too mate, i cancelled a policy, paid what i owe, and they kept the policy going. Now i got C.A.R.S. asking for £129, which they wont be getting.

Almost all insurers do the same, get money for nowt.

I cancelled mine cos, i got rid of a 1999 Punto 1.2 bought a Punto same spec, everything, they upped the insurance by £212 yet would not explain where they get the figures from. Lets know how you handle them. If i have any luck getting rid, ill gladly let you know how i did it.

[nelson80]

same here with Budget too mate, i cancelled a policy, paid what i owe, and they kept the policy going. Now i got C.A.R.S. asking for £129, which they wont be getting.

Almost all insurers do the same, get money for nowt.

I cancelled mine cos, i got rid of a 1999 Punto 1.2 bought a Punto same spec, everything, they upped the insurance by £212 yet would not explain where they get the figures from. Lets know how you handle them. If i have any luck getting rid, ill gladly let you know how i did it.

 

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Edited November 19, 2009 by nelson80

[nish40]

hi, i work in insurance mate, more than happy to help you.

you said you already cancelled? if not easy to sort out, if you have not so easy. not impossible though.

as you have now cancelled your insurance, and i presume your ddi ( direct debit) then the funds have been transferred to bad debt( collections), then referred to CARS. £129 sounds a short term rate charge. there figures are supplied by the underwriter, ull find the underwriter on your cert of insurance mate.

the underwriter informs the broker, i.e budget in this case the price, when you wanted to change your car, all budget do is tell you what that is. be honest the c/s advisor at budget didnt have a clue why the premium increased, probs insurance rates have increased, if the vehicle was same spec, that means there has been a influx of claims, underwriter's have not made enough cash, and hitting you with a increased in premium.

ok mate, to dispute the cancellation fee. main point, go back to budget, you call CARS all they ll say is you owe the money and thats it. they have just been passed on the debt. when you call budget, ull just be speaking to c/s advisor, who will tell you there is nowt they can do etc .... same old story. be fair there isnt nothing they can do. ask for the address for the customer relations team, they deal with complaints. now the advisor will try to talk you round and deal with query you are having. ull probs hear " budget insurance finances your insurance and pays the u/writer up front when you take the policy out ( if you pay instalments ) if you paid annually then itll be, these are cancellation charges and we made you aware etc.....

budget insurance does not lose out at all. if you have paid instalments for example, example, you paid £10 per month, and you premium is £120 per year, and you cancel 6months into your policy, budget have has £60 off you for time on cover, then charges you 70% of the over all premium, and on top of that £35.00 cancellation fee. not fair at all. make matters worse, the u/writer then refunds budget the remaining 6months left. the broker makes more money off you cancelling your contract rather than you seeing it through.

mate, when you write to customer relations best thing to state, is you feel this is illegal, and totally unacceptable. you can understnad the cancellation fee, but not the short term rate, and demand this is reversed. they normally will reply within 7/14days, if they are not going to help, then go to FOS. address will be in documents mate. on customer i had, FOS stepped in, within 3months, short term rate was reversed, normally budget like any insurer will back down before you go to FOS, as if FOS got involved it costs insurer £400 per investigation. not worth it, as you charges are £129. happy days matey let me know how it works out, any questions message me bud.

Thanks for the advice mate, really appreciated, i'll let you know how it goes

[al5678]

people

Edited November 18, 2009 by al5678

[nelson80]

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Edited November 19, 2009 by nelson80

[jmdnnlln]

Ok I now this topic is a little out of date but I can relate to whats going on.

I cancelled my insurance in March 2011 3 months into the policy, My car had

seen better days and became unroadworthy (Brakes) faced with the cost of repair it was obvious that it wasn't worth it and so I scrapped the car.

 

I have another vehicle which at the time was SORNED, and so I set about transfering the policy......This is where the saga starts.

My original cost of insurance with Budget was approx £800, when they re-quoted me, for a less risk car, they asked for £1600:shock:....As you can imagine my SHOCK at this quote I politely declined, and thats when I was informed there is a £365 cancelation charge!!!

 

I then went online...as we all do...and used a comparison web site, guess what...yup Budget quoted me £450....BUT they will not honour this as it's for "New Customers":-x

I am at present writing a complaint as suggested, and then will go on to the F.O.S

 

If you are considering BUDGET CAR INSURANCE read the T&C's....they are a CON!.....and then shop elsewhere!