Insurance cancellation fees?

Discussion in 'Motorhome Insurance General Discussion' started by Sneezles, Aug 31, 2010.

  1. Sneezles

    Sneezles Read Only Funster

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    Does anybody know if there are any laws governing fees on the cancellation of insurance policies or can companies charge what they like?

    I am cancelling a MH policy which has been running for 6 weeks and the policy was £328 and they are charging me for time on cover £28.39 (Fair enough)but then there and fees and more fees oh and more fees with added fees on top which brings the total cost for 6 weeks insurance now to £165.91:Angry:

    I do expect to pay dearly for cancelling but this is just a joke surely?:Rofl1:

    Can anybody advise or do I have to just shut up and stomach it? :cry:
     
  2. acting_strange

    acting_strange

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    there is an insurance omsbudman....give them a call.....doesn't sound right to me but we do live in Rip Off Britain :Sad:
     
  3. cyclingdoglucy

    cyclingdoglucy Read Only Funster

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    4 weeks greenflag cover is the same more than 50% loss , never had a claim in 5 years , 2 cars covered & they still want to rip you off, i have e-mailed them showing my concern & begging?.:Angry:, why can they not accumalate the funds for next years premium?.
    mr bean
     
  4. Janine

    Janine Funster Life Member

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    I think it may depend on whether you are insuring directly with the underwriters or through an agent.

    I know that Sureterm charge a lot for cancelling a policy even after a couple of days because they are agents.
     
  5. Sneezles

    Sneezles Read Only Funster

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    It was with a broker but I think it is me that will be broker :Rofl1:

    How are these people getting away with it? Seems it is not just me then?

    Might ring the Ombudsman people tomorrow and see if there are any rules.
     
  6. chatter

    chatter Read Only Funster

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    they do it the same the other end on the term as well if you want to cancel after say 8 months you get nothing back if you have paid a yearly sum and end up owing them if you have paid by dd
     
  7. GJH

    GJH Funster Life Member

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    In my experience cancellation costs have always been stated up front before the contract is agreed to. There is, of course, the statutory "cooling off period" under the Distance Selling Regulations for policies bought on the phone/on-line where cancellation costs nothing.

    As with every other contract the onus is on all of us to read it properly and only enter into it if we are content to take the consequences of actions such as cancellation.

    Graham
     
  8. Janine

    Janine Funster Life Member

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    Not sure about DSR on insurance, Graham.

    Sureterm wanted £30 for cancelling the next day when I was offered a better deal.
     
  9. GJH

    GJH Funster Life Member

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    You're right Janine. I should have checked first as I usually do :Smile: Insurance is an excepted contract under regulation 5.

    I was getting mixed up with the good practice which some companies employ. For instance Tesco Home Insurance:
    Saga have similar wording in their documents for both home and motor policies.

    Graham
     
  10. scran

    scran Read Only Funster

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    rip off insurance

    weve just been ripped off by sureterm with there mistakes but never admitted they were at fault:Smile:
     
  11. madbluemad

    madbluemad

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    In all of the Insurance estimates that I have recieved for rv's - mh's, the no cancellation clause is clear and unabiguos. The same applies to the Policy documents, clear and unambiguos.

    I dont like it but if its there in the t & c's I can hardly complain.

    Jim
    :Smile:
     
  12. Sneezles

    Sneezles Read Only Funster

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    Thanks for the replies everybody.

    The problem is that this policy as most policies are I assume taken out over the telephone and paid with a card.
    It is not until a few days later that the full paperwork arrives that in the smallest print that you need to Supersize at Specsavers to read it states that they will charge a cancellation fee of £25 plus time on cover.

    That sounds ok but they also fail to mention that they have already charged you a £15 new business fee from the Broker, a £15 non refundable legal cover fee and a £25 new business fee from the actual insurance company. They also have charged me a £57.52 Breakdown cover fee which I find most amusing as I had already had this cover with the RAC/Camping and Caravanning club which I mentioned when taking out the insurance but they simply said well it is included if you like it or not - even though it clearly states on the Statement of Facts they send you that I do not require breakdown cover!

    The annoying thing is that I was quite happy changing vehicles with them but after spending £328 originally for a £42K A class full comp then 6 weeks later went back to a £25k Coachbuilt they wanted an additional £60 on top!

    I can take a new policy for £205 for the full 12 months!!

    Anyway, now swopped over as the more than abrupt chap on the phone said "Two choices - cancel it or swop it" got the impression he was doing this [​IMG]

    I don't mind paying a reasonable amount but this seems to me like they can charge what they like and you cannot have a say in the matter. [​IMG]

    Won't be using them again next year I can be sure.
     
  13. trophychap

    trophychap Funster

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    The moral of the story is, chaps and chapesses - not to leave it until zero hour when it comes to arranging or renewing your cover.

    Get the quotation and have it put in writing, then you will have time to cogitate and weigh up all the pros and cons. (or the cons and cons, of course ..... !)

    And what being a flipping agent or being direct with the insurers has to do with the price of fish is beyond me, having worked for both insurers and brokers for approx 40 years. Whatever, just a ruddy excuse if you ask me ....

    :Angry: :Angry: :Angry:

    PS this is Jenny, just too lazy to log out ad back in again as me!
     
  14. Sneezles

    Sneezles Read Only Funster

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    Didn't have that liberty of taking it out earlier as had already done the proper thing early only to find out that the windscreen cover was only in fact up to £1k and found out that it would cost £3k to replace the windscreen if it went :Doh: so had no choice than to take it out over the phone.
     
  15. oldun

    oldun Read Only Funster

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    I have today received several quotations by email and all state the cancellation charges. They are huge but they make the rules and we have little choice.

    Also what looks "fair" to us may not seem "fair" to them.
     
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