14 Day cool off after price increase

[alexdjm]

Hi all.

I renewed my motor insurance in April 2007. In July they told me they had made a mistake re the area the bike was kept, and my premium had to go up by £132.00 pa. After arguing for a while I eventually agreed to the new price on 15th August but said I would cancel as soon as I found an alternative insurer. I cancelled on 22nd August. In their new policy info it states I have 14 days to cancel. Does this price increase effectively mean it is a new contract and would I therefore have 14 days to cancel from 15th August? They are trying to charge me 70% of the insurance premium plus lots of other fees.

 

Thanks

 

Alex

[LemonTwist]

This is a tricky one, but I don't think the price increase constitutes a new contract. As far as I know, a new contract is only formed at each annual renewal date.

However, I don't think they should have charged you the additional premium as it was their own mistake which caused it to have been calculated incorrectly in the first place. It sounds to me like you bought this insurance via a broker?

[alexdjm]

Hi

Yep - I bought through a broker. I had given them 2 addresses. My home address in london and the address where the motorbike was kept (it was an off road bike for touring so I kept it in a garage at my parents). They said that after an audit, they had to use the home address even though it was not kept there.

 

Thanks for your reply.

 

Alex

[Chesterexpress]

The address the underwriters would have used for calculating the premium is the one where the vehicle is kept. Your broker is wrong to use any other address, other than for communications etc.

[Trojan1401]

Agree with Chester - Rate is based upon where the vehicle is kept/garaged.

[Mossycat]

I thought the 14 day cooling off period only applied to something you bought in your own home and was introduced to help out people that had been so pressured into buying something that the only way they could get rid of the salesperson was to buy it.

 

Since you could have walked away at any time (or if online closed your browser down) you were not pressured and as such you have no 14 day cooling off period.

 

Or am I wrong???????????

 

Mossy

[Chesterexpress]

Mossy, all insurances allow for a 14 day cooling off period, from date off inception or receipt of policy documents, whichever is later. So if you don't receive the documents, make sure to phone up and request new ones and take note of the phone call, that way you still have 14 days from receipt to change your mind.

Obviously if you make a claim within the cooling off period, you can't then cancel.

[Mossycat]

Mossy, all insurances allow for a 14 day cooling off period, from date off inception or receipt of policy documents, whichever is later. So if you don't receive the documents, make sure to phone up and request new ones and take note of the phone call, that way you still have 14 days from receipt to change your mind.

 

Obviously if you make a claim within the cooling off period, you can't then cancel.

 

Then I stand corrected

 

Mossy (Better at claims handling than selling insurance)