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I just sold my car with 2 1/2 months left on the insurance policy and 2 outstanding payments left for it. I rang up my insurers to inform them that the car had sold and they told me they wanted both the outstanding payments and a cancellation fee of £45 on top. I'm on benefits and can't afford to pay this, unless I take it from the sale of the car, which I really don't want to have to do. If I had kept my mouth shut and just left the policy to run it would have just been the 2 outstanding payments taken over the next 2 months and no cancellation fee. How can they justify charging me an extra £45 and still expect the remaining 2 months payment if I'm not being insured for this period of time? Can anyone offer me advice on what I should do here as surely I should either pay the cancellation fee or the remaining payments, not both?

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Yes I agree that this is really silly. You end up paying more than the annual premium cost, for a 10 month policy.


Suggest that you pay the 2 months payments and threaten to take this to the FOS. This needs to be challenged. Yes it is covered by the terms of your policy, but I think the regulatory bodies should view these terms as unfair.

We could do with some help from you.



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