Insurance ... be careful if you intend to cancel the policy ...

[Minxy]

This is something that everyone taking out an insurance policy, be it for a car, bike, MH ... should be aware of if they are likely to have to cancel it before the end of the policy year ... but first a bit of background.

Today I planned on sorting out the insurance for our Globecar FamilyScout L and then doing some more jobs in the camper ... yeah right!

At noon I sat down to do the insurance ... I'd already done some comparisons the other day so though I knew the ones which would suit ... how wrong was I! I rang one of the companies and found out that the quote given on line in no-way resembles the one they offer you on the phone which is over 50% more at least! They use the excuse there are other things to be considered not covered in the quote info requested ... okay, so like what I enquired ... NCB ... nope that was asked about in the quote ... accidents/claims, nope already in the quote info ... annual mileage ... already asked and answered in the quote ... this went on until there was actually NOTHING different to make the quote change from the one offered on the web to the one offered on line, just a massive hike in price. Happy bunny I was not as I then had to hit the phones to get an accurate quote.

It was at this time that I got a call from a lovely chap called Daniel at A-Plan brokers who, although they don't give quotes online via the comparison sites they do get the info passed on to them of those people who complete the on-line forms, and then give them a ring ... now I don't usually like these 'cold callers' but the chap was very pleasant and I was fed up of ringing round at that point so went ahead whilst I was scoffing my sarnie as it was now 1.15 pm!

I told Daniel about the stupid online quotes by other companies and he said they do that to 'hook' you into clicking on the link as they get paid 'per click' regardless of whether you take a policy out or not. I don't like tricks like that especially when the quote is totally misleading and it doesn't inspire confidence in how they'd deal with customers in the event of a claim so I'd now avoid them anyway. Once we'd gone through it all Daniel came up with some options for me which we then further explored due to me wanting to cancel in a few months time when I sell the camper, this is where it got to be even more 'fun' ...

When cancelling a policy you need to watch out for these 3 charges:

1. brokers usually charge an admin fee ranging from £25 to £55​

2. the actual insurer may also make an admin fee and can be even more

3. the insurer also usually makes a deduction from the total policy cost for the time
you've actively had it in place which can be:

• either be a pro-rata charge for the actual number of days
• or a percentage based on the number of months' you've had it

the latter being a much more expensive option if cancelling - one insurer charges 25% percentage of the policy premium if you cancel before 30 days, it then increases by at least 10% of the premium for each subsequent 30 days.
​

Some brokers and insurers also charge a cancellation fee if you cancel within the first 14 days even if they say there isn't one as they hide it by calling it something else, although some don't ... it's an absolute minefield. All these charges can add up quite substantially!

Anyway, after going through some other quotes on the phone to confirm the details of initial cost, cancellation fees/charges and refunds, I eventually rang Daniel at A-Plan at 4.00 pm and took out one of the policies he offered as he had previously agreed to waive their £30 broker admin cancellation fee as I'd been honest with him up front that I would be doing so, rather than dropping it on them later, which I thought was very decent as he didn't need to do it.

So, I've now finally got the camper insured for UK only, fully comp, with 1,5000 mileage max, no recovery/breakdown, no legal or NCB protection although they did gave me a 2 year introductory NCB (our 18 years NCB is used on the new one's policy) so all I need to do now is get some recovery sorted for when we take it to/from the dealers (ways of doing that though without it costing anything ... ).

Phew ... I need a BIG cup of tea!!!!

 

[Janine]

It's crazy, isn't it? I was insured with Saga, did an online quote for my new car and it came out at something like £150. When I phoned them to do the changeover it was almost double that. I queried it with them but there was no way they would let me have it at the lower price plus I had to pay a cancellation charge to Saga. I went to Direct Line instead!

 

[Stealaway]

Just one more example of why I hate motor insurance companies - with a passion

 

[TinaLes]

Hi Minxy Girll.
Me again, being an ex IFA/Broker for a lot of my mature life, then what you have experienced does not surprise me on the "General Insurance" side of things as it is less regulated than that of Investments/Life/ Pensions. This is because they should provide a detailed KFI listing all charges which in effect covers their A##e in the event of a claim or a complaint, as they always refer to to both it, and their terms & Conditions.
I have had occasions in the past where some companies say we will "honor" your on-line quote when pushed, others say they cant as you are taking the time of a human being at the other end of the phone.
Latest example of this was with Admiral Insurance, I got several quotes on line via a comparison website, Admiral was best for price, level of cover & excess amount, but I did have a question that needed answered as it was not clear on the KFI/KFD. I rang them up they answered my question, in doing so THEY did another quote, reminding me that everything I said was being recorded, telling me about the 14 day cooling off period etc, etc....but the phone price was over £100 dearer, I said that doesn't make sense to me as Admiral will be paying commissions to the comparison site, whereas I was trying to save them that by going direct....it didnt work, so I went via comparison site, still waiting for my meerkat toy, and cinema tickets as they never arrived.
Using a broker always means incurring a broker fee as they have to earn a living, but they do earn that fee in the event of a claim as they help you process the claim, and are in fact working for you as you are "their client". They are the best resource for finding difficult cover items, such as classic cars/bikes/artwork or even holiday lets, as they have specialist insurance that are not available directly to the public.
Direct to public policies are blanket products designed and priced to suit Joe Average, some broker products have specialist underwriters that design cover and insure for a clients specific needs and requirements.
I used to refer some of my GI clients business to A Plan,(I knew the Director)as I knew they would do the job being asked of them, and not try and nick my client for Life Protection business, worked both ways, as sometimes they would refer clients to me for investment/pension business.
Les

 

[SpeedyDux]

After I sold the T4 camper privately I contacted Comfort. They cancelled the policy and gave me a pro-rata credit to use against the next policy premium 2 months later when I took delivery of the new PVC. It was all done efficiently with a worthwhile saving and I don't recall any excessive admin charges.

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[MikeD]

In my opinion all Insurance companies and brokers spend a lot of time trying to find away around the terms "honesty" and "integrity".

The biggest fiddle they have organised between themselves is:

"Misrepresentation or non‐ Disclosure
£100
This charge will apply if we have been instructed by your insurer to cancel your policy as a direct result of misrepresentation or non‐disclosure by you at time of the quote and/or inception of the policy."

So you have a claim - could be for anything - windscreen etc.

They ask "How much did it cost?"

You say - as the insurers don't inform you of this - you don't know but around £xxxx

Because you had under estimated, they after the 14 day cooling off period basically accuse you of insurance fraud.

Either you cancel the policy costing £100 or you accept their new insurance costs.

Don't forget you have to disclose the industry has cancelled a policy on you.

We have been caught.

Don't even start me on the little "B's" who charged me £40 to move my no-claims to a new policy for the replacement motorbike three weeks before the policy expired. That was with the same damn company

 

[The Wino]

I've had all sorts of dealings with car insurance companies and think they are often just incompetant rather than sticking up the price one example being my daughters policy last year first quote about £1200 the comparison site same co (admiral again) £1000 then after phoning£750 all figures approx but gives the gist. They seem to get different quotes every time they put in the details especially it seems if you get India.

 

[Vanman]

Apologies if I have the wrong end of the stick, it happens a lot!

The policy cancelling bit I get, sometimes it's better to stay with the same company and have the balance transferred to the new vehicle. They seem less vindictive if they think you might stay longer ...

As far as the comparison websites go I now take the deal and never phone. I had the same experiences as some of it costing a lot more for no apparent reason. Then one day the insurer says "We can't offer the same discounts as the on-line offers". Basically they were saying because it's all done on line (no pesky telephone calls / operators) they can offer it cheaper and as you're obviously comparing they have to be competitive or get no business.

 

[Northernraider]

Have to say I've bought my insurance online for the last 5 or 6 years using comparethemarket ive never had to phonr them i just pick the one i want from the list of quotes and pay it.
Usually they will then ask to forward proof of no claims etc which I've done and been no issues.

Think I had 17 meerkats when I sold the house lol . And they don't send you cinema tickets you request a code and you get 2 for 1 on Wednesdays or something.

Cancellation fees I totally sympathise with as I've been stung a couple of times by those but usually bevause I've had several vehicles at the one time and then I've sold one and no longer require the policy

This time last year I had 3 cars a work van a camper van and 2 motor bikes all insured and in use lol

 

[gus-lopez]

You say - as the insurers don't inform you of this - you don't know but around £xxxx

Because you had under estimated, they after the 14 day cooling off period basically accuse you of insurance fraud.

You should always answer to questions like that " No idea they never told me so ask the previous insurer; furthermore do not at any time attempt to use this as any type of 'non-disclosure' & attempt to impose charges /hike the premium."

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[Lenny HB]

Had to give you a funny Mel I think most of us have been there done that.

 

[GWAYGWAY]

On my little van bike a Honda CG125 I had a renewal of twice the previous fee so I rang them up and he said he would drop it a bit but I said NO . I then bought a policy from another company. BUT I had found out that the first company had kept me going for the next year and charged my card, the details of which they had. I now had two policies paid for,one bike, which is illegal . When I found out I went back and said I cancelled it , they said No we continued as it was not in writing. I said cancel it they then said it will cost £75 cancellation fee and the policy was only £80 with the other company. They also said if they cancelled the policy I would be on the books as having it nullified and therefore shown as having been refused insurance which would stop me getting any insurance with any company as I would be on the blacklist as having a REVOKED policy, which is a big no no . It took a lot of trouble to cancel the policy and have only one policy. Thoroughly dishonest in all ways.

 

[Dorwyn]

My insurance states in the small print that early cancellation would not result in any refund.

 

[tacr2man]

Reading all the above is why I stay with NFU , for most of my insurances . I also have quite a family of Meerkats , where I have been advised by NFU that eg my scooter is better not with them .

 

[Minxy]

My insurance states in the small print that early cancellation would not result in any refund.

Trouble is you need to know about that before you buy it - you need to read the Terms and Conditions on the website and Terms of Business too as these should give details of the costs of cancelling and changing details on a policy but unfortunately often don't.

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[Minxy]

Apologies if I have the wrong end of the stick, it happens a lot!

The policy cancelling bit I get, sometimes it's better to stay with the same company and have the balance transferred to the new vehicle. They seem less vindictive if they think you might stay longer

Agree but unfortunately it wasn't an option for us to simply change the camper on the policy as we still needed it on the old one. I'd already taken out a new policy for our new Campscout with Safeguard who agreed to mirror the 18 years NCB on our FamilyScout's existing policy until it ended (today) then the Campscout was to be deemed to be the main 'holder' of the 18 years NCB. That's why I've been having to get a completely new policy for the Familyscout until we sell it, we don't need all the 'bells and whistles' that come as standard with a Safeguard policy anyway although I did ask them for a quote for the Familyscout and it was £363 so didn't it make sense to get it especially with the cancellation fees etc.

 

[Deneb]

Not van insurance, but I got my Home and Contents renewal notice a couple of days ago. It had gone up just over £30 since last year, but it included a cost breakdown of all the different cover options included. I noticed that legal protection cover was shown as £26 of the quoted premium, but as I have that already through a group scheme with my ex-employer, I phoned to cancel it. I also noticed that they gave a discount for window locks, which wasn't included when I took out the policy, so not on my schedule. Then I was told that by taking legal protection off of the policy and notifying the window locks, the total premium had increased by another £70 over what was quoted in the renewal letter.

So, £30 more than last year for the same cover. £100 more than last year for reducing their risk and better security

"It's what the computer says" apparently. "I'll cancel and go elsewhere then" was my reply.

 

[Stealaway]

Happy bunny I was not as I then had to hit the phones to get an accurate quote.

They really didn't realise who they were taking on this time

 

[Ninjabob]

A bit like Energy Companies/Mobile Phone Contracts it pays to go online every time any of your insurance premiums are up for renewal - the greatest con is to renew with the same company - an example:

First time insurance last year on brand new Bailey 75-2 with Saga £371 no tracker.alarm etc required.
This year SAGA with one years no claims bonus £552 - told them to stuff it were the sun etc....

Online with Advance who use Aegas insurance £357.59 same cover, excesses etc.

Without giving the figures the same has applied on renewal to my AUDI A6 and the wifes SMART For 2.

As Brucy might have said "Keep Changing"