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Insurance and 14 day cooling off period.

Insurance and 14 day cooling off period.

Author
Discussion

JumboBeef

Original Poster:

3,563 posts

89 months

Saturday 13th October 2012
quotequote all
Hello all.

I recently spent forever finding a decent insurance renewal for my wife's Range Rover. In the end, a comparison website sent me to an insurance company run by a bank (where Howard used to work).

I completed all the on-line forms and, before paying, read a sample policy to check 'driving other cars not belonging to you' was included. It was.

I paid a deposit and agreed to pay the rest monthly. When the paperwork turned up, guess what, driving other cars was not included.

I called them, and they point blank refused to accept that I did indeed read a sample policy on-line which showed driving other cars was included.

They offered to change the policy for me.......they would require another (larger) deposit and I would only receive a fraction of my original deposit back. I said, hang on a minute, I have a 14 day cooling off period. They agreed I did but said I would have to pay a £20 admin fee if I cancelled under the 14 day cooling off period.

Are they within their rights to charge a £20 "admin fee"?

Thanks.

lost in espace

4,048 posts

119 months

Saturday 13th October 2012
quotequote all
Unfortunately they have started charging fees in most cases to cancel within the 14 days. I suspect that it is probably contrary to the law, but just pay it for an easy life.

SS2.

9,344 posts

150 months

Saturday 13th October 2012
quotequote all
It's my understanding that insurers can charge a reasonable administration fee if the policyholder cancels during the 14 day cooling off period.

Are they charging you for any cover provided between the policy commencing and being terminated ?

Olly RM

745 posts

81 months

Saturday 13th October 2012
quotequote all
Hate to say, CIA wanted £45 when they started to change the ball park on me last year. I ended up just staying as any saving would have been lost, however I am pleased I never needed them in any way at all.

Noger

7,106 posts

161 months

Sunday 14th October 2012
quotequote all
Yes they can.

And £20 is pretty reasonable.
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JumboBeef

Original Poster:

3,563 posts

89 months

Monday 15th October 2012
quotequote all
OK, thanks.

PAULJ5555

2,322 posts

88 months

Monday 15th October 2012
quotequote all
They charge to stop people getting 14 days free insurance cover.

i.e insure a car, drive for 14 days and cancel, however £20 for 2 weeks insurance is not bad.

I know a few people who do this.

StottyZr

6,420 posts

75 months

Monday 15th October 2012
quotequote all
PAULJ5555 said:
They charge to stop people getting 14 days free insurance cover.

i.e insure a car, drive for 14 days and cancel, however £20 for 2 weeks insurance is not bad.

I know a few people who do this.
I was wondering about this. Can I cancel my insurance after 14 days (incidentally today is my 14th day) then take out an online policy the same day? £27.50 is my cancellation fee, thats about a third of what per week I pay if I run it for the year...

downimpact

15 posts

103 months

Monday 15th October 2012
quotequote all
No they can't charge you, distance selling regs apply. I've cancelled a policy before for similar reasons, just wrote them a letter quoting the regs ad it was all sorted for free. Muppets on the phone wanted to charge me. (disclaimer - rules may have changed in the last few years)

SS2.

9,344 posts

150 months

Monday 15th October 2012
quotequote all
downimpact said:
No they can't charge you..
They can, but the charge must be reasonable.

downimpact said:
..distance selling regs apply.
Those regulations are specifically excepted as far as insurance is concerned and, as such, do not apply.

Noger

7,106 posts

161 months

Monday 15th October 2012
quotequote all
Indeed. The Financial Services (Distance Marketing) Regulations 2004 (which do apply whereas Distance Selling doesn't) specifically allow for admin charge and charges for time on risk. Backed up by the ICOBS for insurance.



JumboBeef

Original Poster:

3,563 posts

89 months

Monday 15th October 2012
quotequote all
StottyZr said:
PAULJ5555 said:
They charge to stop people getting 14 days free insurance cover.

i.e insure a car, drive for 14 days and cancel, however £20 for 2 weeks insurance is not bad.

I know a few people who do this.
I was wondering about this. Can I cancel my insurance after 14 days (incidentally today is my 14th day) then take out an online policy the same day? £27.50 is my cancellation fee, thats about a third of what per week I pay if I run it for the year...
It's £20 plus per-day cost for the insurance, pro rata.

Pontoneer

3,607 posts

98 months

Monday 15th October 2012
quotequote all
Next time you read a sample policy - print it out .

StottyZr

6,420 posts

75 months

Monday 15th October 2012
quotequote all
JumboBeef said:
StottyZr said:
PAULJ5555 said:
They charge to stop people getting 14 days free insurance cover.

i.e insure a car, drive for 14 days and cancel, however £20 for 2 weeks insurance is not bad.

I know a few people who do this.
I was wondering about this. Can I cancel my insurance after 14 days (incidentally today is my 14th day) then take out an online policy the same day? £27.50 is my cancellation fee, thats about a third of what per week I pay if I run it for the year...
It's £20 plus per-day cost for the insurance, pro rata.
Apparently not so. Its 2 weeks exactly since I took out my policy. Just ran an online quote and it was £180 cheaper than 2weeks ago! I've just called up and explained the circumstances and asked them to price match. They declined. I was passed to cancellations and cancelled. My initial policy was refunded minus ~£25 admin fee. And I've just paid for a new policy starting tomorrow smile

£150 and 2weeks insurance up :P

To be honest, I wouldn't have used the cooling off period if they had simply refunded me the difference!

And yes, I'm feeling quite smug now, especially as I'm skint tongue out

ATM

5,573 posts

131 months

Thursday 6th October
quotequote all
I've just cancelled a policy with Adrian Flux within the 14 day cooling off period for a genuine reason - rather than trying to get a few days cheap insurance - and they have charged me for the days used plus £65 admin fee. That's quite steep for an admin fee and kind of makes the exercise a bit pointless.

mcflurry

8,315 posts

165 months

Thursday 6th October
quotequote all
ATM said:
I've just cancelled a policy with Adrian Flux within the 14 day cooling off period for a genuine reason - rather than trying to get a few days cheap insurance - and they have charged me for the days used plus £65 admin fee. That's quite steep for an admin fee and kind of makes the exercise a bit pointless.
Wonder how many people use a company again after such a large charge?
After all, the proverb says, "you can shear a sheep many times, but only slaughter it once"


2ono

206 posts

19 months

Thursday 6th October
quotequote all
Just a quick question, paid in full for car insurance on 29/09/16, policy doesn't actually start until 16/10/16 when does my 14 day cooling off period start, as I'm now thinking of changing one of the cars.

Sorry for the thread hijack....

Amused2death

1,686 posts

108 months

Thursday 6th October
quotequote all
2ono said:
Just a quick question, paid in full for car insurance on 29/09/16, policy doesn't actually start until 16/10/16 when does my 14 day cooling off period start, as I'm now thinking of changing one of the cars.

Sorry for the thread hijack....
I believe, in your case, the 14 days starts when the policy comes into force.

From: http://www.moneysupermarket.com/car-insurance/blog...

"The cooling-off period starts when you receive your documents, or when the cover begins, whichever is the later. But the insurer can still apply a fee to cover the cost of administration"

KevinCamaroSS

6,762 posts

192 months

Thursday 6th October
quotequote all
2ono said:
Just a quick question, paid in full for car insurance on 29/09/16, policy doesn't actually start until 16/10/16 when does my 14 day cooling off period start, as I'm now thinking of changing one of the cars.

Sorry for the thread hijack....
Why not just change the car details on the policy?

JumboBeef

Original Poster:

3,563 posts

89 months

Thursday 6th October
quotequote all
mcflurry said:
ATM said:
I've just cancelled a policy with Adrian Flux within the 14 day cooling off period for a genuine reason - rather than trying to get a few days cheap insurance - and they have charged me for the days used plus £65 admin fee. That's quite steep for an admin fee and kind of makes the exercise a bit pointless.
Wonder how many people use a company again after such a large charge?
After all, the proverb says, "you can shear a sheep many times, but only slaughter it once"
Flux used to be great, I used them for years. Then they got more expensive than the others. I did try a few times over the years but their quotes were always considerably more than others.....