Insurance cancellation charge ???

4T5

4T5

4T5

Man of Honour
Joined
30 Aug 2004
Posts
27,737
Location
Middle of England
Does the 7 day cool down period not apply to insurance ?
I re insured my Chopper tuther week & then had to cancel yesterday as I sold the bike, Insurance was only 110 quid but they are charging me around 50 quid for cancelling & told me there is no cooling down period. :confused: + :mad:
My Broker only takes a fiver & the insurance company takes the rest.
Highway is the insurance company involved the greedy ******** *******. :mad:
Good job I got a nice hefty wedge for the sale of my Chopper to compensate for the 50 I dropped on 4 days insurance. :mad:

Any info would be appreciated if I can blag my way out of it. :D
 
There should always be a cooling off period with any insurance.

What you should look for in the wording though is if they reserve the right to charge a "reasonable" fee to cover their admin costs.

I wouldnt say £50 is reasonable.

Need more info on your T&C wording really. It will all be in there.
 
Paid over the phone using my debit card.

Only got the details via email & didn't even bother reading. :o

50 of my quids for admin is Not reasonable. :mad: + :p

Cheers.
 
Actually even if you bought it face to face, because you went through a broker you're ok for a full refund, minus an admin fee. Your broker taking a fiver is fine, the rest is not fine.
 
Just read/found this -
Cooling-Off
We trust that the cover provided by this policy fully meets your
needs. However, you do have the right to cancel the policy by
returning your certificate of insurance to your insurance adviser or
direct to Highway Insurance, along with your cancellation request,
within 14 days of receiving the policy documentation. You will be
charged a proportionate premium of the period of cover that you
have enjoyed, subject to a minimum premium of £25 + Insurance
Premium Tax.
Cancelling Your Insurance
You may cancel the insurance at any time by telling us or your
insurance adviser in writing or by email or telephone and sending
us your certificate of insurance. If you or someone else has not
made a claim in the current period of insurance, we will refund part
of your premium. We will work out the refund on a pro-rata basis
less a premium charge to cover our administration costs. When
we work out the time you have been covered, we use the period
from the date the insurance started to the date we receive your
Certificate of Insurance.
We will not refund any of your premium if the insurance is cancelled
following a claim whether settled or not.
Click to expand...
 
I have No credit & don't use credit, I pay/paid via my Direct debit card & paid the year in full.
 
Unreasonable contract term, unenforceable. Tell them you wish to be refunded in full, and their terms and conditions are ludicrous. Then complain to the ombudsman when they refuse. You may or may not get your money back, it's like bank charges, and credit card fees and mortgage exit fees. But you may need to go all the way to court, which of course isn't worth the hassle.
 
Just spoke to them on the phone & they told me that MCE (Brokers) are taking 32 quid & Highway are taking 17.52 for the 4 days insurance. Nowt they can/will do to lower it. :rolleyes:
 
Hmm. Different if they are charging that for the period of insurance rather than as a cancellation charge.

What does your policy say regaring pro-rata cover costs?

I would say that you should only be paying £25 from the looks of what you have posted.
 
They certainly can, it's just a question that they won't.

Your next step is to write a letter to the broker asking for a full refund.

Oh, they can't charge 17.xx for the 4 days insurance, but again you'd have to go a long way to protest that.
 
The IPT isn't the issue, they need to charge that on top of whatever they charge you. The 17.52 for 4 days insurance is utter nonsense and entirely wrong. If they chose to put it as an administration charge then that's where it enters the grey area.
 
4T5 said:
Just spoke to them on the phone & they told me that MCE (Brokers) are taking 32 quid & Highway are taking 17.52 for the 4 days insurance. Nowt they can/will do to lower it. :rolleyes:
Click to expand...

Sorry but sounds reasonable to me.

Ins co already kicked all your stuff into motion, have done a refund and to be honest thats not bad for £17.52, especially if that also includes non refundable IPT, I can't remember if it is refundable I forget after years out of the industry. Probs something like a £10-15 admin fee for doing this.

The broker is maybe slighly excessive, but they are probably charging you for the commission that will be clawed back by ins co (prob 10-20% of premium) plus maybe £10-15 for admin in doing so.

Running businesses isn't free, they have both spent time doing your transaction and now undoing it.
 
It may sound reasonable, but it is not.

They are obligated to sell with a cooling off period. Exercising his right to cool off a 110 policy should not result in an administration charge of 40% of a years premium.

They are effectively removing his right to a cooling off period with an unreasonable charge.
 
I had home insurance auto renew, rang up to cancel was told its the full years premium to cancel £450 plus £50 admin charge! - Wanted to cancel as monthly price doubled on auto renew...

I found same insurance on quidco with £80 cash back - effective £40 a year!

Got divorced month later and moved out still not allowed to cancel! Had to pay 42 a month on a house i didnt live in unless paid full amount!! Rang up and cancelled the day before auto renew again!

Lesson learnt never ever ever using budget home insurance ever again!!!
 
The Halk said:
It may sound reasonable, but it is not.

They are obligated to sell with a cooling off period. Exercising his right to cool off a 110 policy should not result in an administration charge of 40% of a years premium.

They are effectively removing his right to a cooling off period with an unreasonable charge.
Click to expand...

But hes got and had a cooling off period.

Take Ins co for starters, they have charged him less than their policy wording states which I bet he could have checked before he signed. The charge is reasonable for the wok they have had to complete, if he had an accident day 1 he would have expected to be covered not pro rata covered for 1/365 of the policy amount.

The broker equally have earned commission for undertaking the work for him to secure the best premium for him. They earn commission for doing this, why should they lose their commission because he has changed his mind. I bet the broker includes this in their literature also.

If the premium had been £1000 he probably would have paid similar to ins co, but probably more to broker to cover their lost commission.
 
JackCarver said:
I had home insurance auto renew, rang up to cancel was told its the full years premium to cancel £450 plus £50 admin charge! - Wanted to cancel as monthly price doubled on auto renew...
Click to expand...

You must be leaving some info out here. There is no way you would have to pay the full premium if your policy auto renewed and you called to cancel.

Did you have an outstanding claim on here as this is pretty much the only way I can imagine you would have to do this?
 
nick5466 said:
You must be leaving some info out here. There is no way you would have to pay the full premium if your policy auto renewed and you called to cancel.

Did you have an outstanding claim on here as this is pretty much the only way I can imagine you would have to do this?
Click to expand...


They said there was a claim, which i knew nothing of, after 2-3 months of going back and forth they advised they paid nothing out on the claim and unsure where the claim came from - i knew i hadn't made a claim, they advised it was for fire... im pretty sure id recall if my house burnt down! - They advised i could cancel but the charge remains, the only explanation they would give is "high cancellation rate at moment"
They wouldn't elaborate any more than that, they did however offer to wave the £50 fee.
 
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