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charge for cancelling before online policy started


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Apologies if this has been asked elsewhere. I did search and didn't find anything.

 

Motorcycle policy taken out online and paid for with Grove & Dean (Performance Direct); full business use declared.

Grove & Dean representative calls to check details and then says there's a further fee because one of the intended uses is motorcycle training (not mentioned on website).

Cancel policy straight away, before start date of policy.

They retain a £55 administration fee.

 

I was under the impression that distance selling regulations require a full refund to be made if whatever has been purchased online hasn't been used. Was I wrong?

 

This company seems to be using this as a business model!

 

Any comments would be appreciated. Thanks in advance.

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Insurers can charge an admin fee to cancellation costs they incur, even if the policy has not started. However, because of their website not mentioning what business use they do not cover, I would have thought that the admin fee would be considered unfair. Therefore make a complaint saying that you believe you are being treating unfairly and if they do not wish to refund the cancellation admin fee, that they should issue their final response, so you can immediately proceed to the FOS.

 

If you go to the FOS, it will cost Grove & Dean a £550 fee and it would not be worth the risk for a £55 admin fee. For this reason. they would be silly not to refund.

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