Can sum1 answer me this. (cancelled insurance policy after 4 months)

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Ace Modder

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Do they owe me money or do I owe them money?

I cancelled my car insurance after around 4 months. As I bought a new car and my current (at the time) insurer wanted £3000 and a different company quoted me £1100

anyway I cancelled my policy, I got this letter today. It doesnt make any sense to me

Cancellationof policy XXXXXXX

Where a client cancels a classic car policy prematurely a repayment will be due from the Insurer following the guidelines laid down by the Ecclesiastical Insurance Group

The refund will be pro-rata based on the number of complete months left to run on the policy

We reserve the right to charge a min fee of £75 if cancellation is instigated during the 1st year of insurance with Peter Best Insurnace Ltd.

As the above polict has run for 4 months, the return premium has been calculated @ 8/12fths of £483.82 by IPT @ 5% totalling £302.98, but in the case of the above policy as this has been paid by Installments to Premium First your refund has been adjusted accordingly.

Where a refund is due, we reserve the right to make a charge of up to £50 to offset the loss we would otherwise sustain through our increased administration.

We would like to take this opportunity to thank you for placing your MGF with us and that we can be of service to you again with any other insurance requirements.

Return Premium: £302.98
Less Admin fee: £-26.41
Refund to Premium First: £276.57
Click to expand...
 
mjt said:
Apart from the spelling mistakes, what's the problem?
Click to expand...

Peter best Insurance Ltd have paid the finance company £276.57 back on the finance policy.

But it doesn't explain if I owe Peter Best or the Finance company any dosh!
 
So look at the total finance

Take away what you've already paid

Take away what they've just been paid

??

Profit
 
I've paid

June - £100.89
July - £41.81
August - £41.81
September - £41.81

So I've paid a total of £226.32 so far.

So £226.32 + the repayment my insurer paid back of £276.57 = £502.89

Does that mean Premium First owes me £502.89 (what I paid and what the insurance company gave back to the Premium First) minus the £432.82 for the policy equalling £64.07?
 
I'm sure I'm completely wrong, but here goes...you paid monthly, you aren't entitled to money back. If you'd paid one lump sum up front, then you'd be refunded for the remaining 8 months.

As it stands, the debt to the finance company has been covered by your insurance company, you don't need to pay them and won't get any money back. It's not complicated.
 
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