Excessive insurance cancellation fees

[Simon_m]

Hi all, after a bit of advice where to go with this.

I took out insurance cover 07/09/2016, I need 4x tyres the standard size is 225/55/17 which are limited for choice and quite expensive. I found out that 225/65/17 fit, there is more choice and they are cheaper but as they are not standard fitment I asked the insurance co who said I wouldn't be insured. I am also getting a remap and they wouldn't cover this either.

I have found an insurer who will cover me with the changes for £50 more the my current insurance co. Today I cancelled the insurance and paid £135.64 fee to do so.

Having now checked I paid a £54.57 deposit 07/09/2016 a DD payment of £55.45 07/10/2016 and £135.64 in fees today, total for 1 months cover £245.66 on a policy costing £534.97.

I have made a complaint and requested a breakdown of their fees along with justification and await with interest.

Anyone with experience of this or any advice welcome.

Many thanks

[anonymous-user]

the calculation of the return premium will be explained in the policy book.
the cancellation fees will be explained in the letter from the broker if you used one.

If these all tally up then you are struggling, if they don't add up then you will get the difference back.

[Simon_m]

desolate said:

the calculation of the return premium will be explained in the policy book.
the cancellation fees will be explained in the letter from the broker if you used one.

If these all tally up then you are struggling, if they don't add up then you will get the difference back.

Thanks, one of the fees was for breakdown cover at £90 for the year, they've said as it was an extra they have to charge the full amount. This seems to be standard practice, although I wasn't given the option of keeping the breakdown cover even though I have paid for it for the full year! So it seems I have paid a years worth of breakdown cover but as I have cancelled the insurance I can't use it, this is surely unfair practice?

I understand the deposit I paid would cover me for the first month but what about the DD taken yesterday, I wonder what that covers, on the face of it 1 days worth of cover.

Seems like cancelling your policy is a licence to print money.

[anonymous-user]

The answer is to read all the documents before you sign up so you understand what you're getting into and if you're intending to modify the car then check what the company is like for modifications before taking the policy out too.

[KrazyIvan]

Simon_m said:

I need 4x tyres the standard size is 225/55/17 which are limited for choice and quite expensive.

Off topic i know

But a quick search on oponeo of that tire size returned 248 products in a price range from Euro 48 (from some never knew existed company) up to euro 220 from the usual suspects. so a bit surprised you seem to having trouble finding suitable rubber, for what is actually a fairly common size.

[Simon_m]

KrazyIvan said:

Off topic i know

But a quick search on oponeo of that tire size returned 248 products in a price range from Euro 48 (from some never knew existed company) up to euro 220 from the usual suspects. so a bit surprised you seem to having trouble finding suitable rubber, for what is actually a fairly common size.

It's an AT tyre I want which narrows things down a bit

Edit: Just done a search on Oponeo 7 results for 225/55/17 and 63 results for the 65 profile

Edited by Simon_m on Saturday 8th October 17:18

[KevinCamaroSS]

Simon_m said:

I need 4x tyres the standard size is 225/55/17 which are limited for choice and quite expensive. I found out that 225/65/17 fit,

the 65 profile tyres are over 6% greater in circumference thus you will also need to re-calibrate your speedometer as it will be over 6% under-reading, rather too much for my tastes.

[Simon_m]

KevinCamaroSS said:

the 65 profile tyres are over 6% greater in circumference thus you will also need to re-calibrate your speedometer as it will be over 6% under-reading, rather too much for my tastes.

I'll live with that, now worries about speed cameras as I always use sat nav. The added extra MPG will be welcome too.

Edited by Simon_m on Saturday 8th October 18:18

[Countdown]

Simon_m said:

I'll live with that, now worries about speed cameras as I always use sat nav. The added extra MPG will be welcome too.

Edited by Simon_m on Saturday 8th October 18:18

Increasing the gearing doesn't necessarily increase MPG (as far as I'm aware).

[Simon_m]

Countdown said:

Increasing the gearing doesn't necessarily increase MPG (as far as I'm aware).

Just what I heard on 'tinternet...

[cmaguire]

KevinCamaroSS said:

the 65 profile tyres are over 6% greater in circumference thus you will also need to re-calibrate your speedometer as it will be over 6% under-reading, rather too much for my tastes.

So his speedometer will probably now be accurate then.

[Simon_m]

cmaguire said:

So his speedometer will probably now be accurate then.

It will be, speedo 30=27 GPS, but that's not the issue...

[funkyrobot]

Simon_m said:

KevinCamaroSS said:

the 65 profile tyres are over 6% greater in circumference thus you will also need to re-calibrate your speedometer as it will be over 6% under-reading, rather too much for my tastes.

I'll live with that, now worries about speed cameras as I always use sat nav. The added extra MPG will be welcome too.

Edited by Simon_m on Saturday 8th October 18:18

Have you thought about dropping the rear seats down (if you have them) to make the car lighter?

[Chrisgr31]

funkyrobot said:

Have you thought about dropping the rear seats down (if you have them) to make the car lighter?

A classic thread!

[Bill]

Simon_m said:

Thanks, one of the fees was for breakdown cover at £90 for the year, they've said as it was an extra they have to charge the full amount. This seems to be standard practice, although I wasn't given the option of keeping the breakdown cover even though I have paid for it for the full year! So it seems I have paid a years worth of breakdown cover but as I have cancelled the insurance I can't use it, this is surely unfair practice?

I understand the deposit I paid would cover me for the first month but what about the DD taken yesterday, I wonder what that covers, on the face of it 1 days worth of cover.

Seems like cancelling your policy is a licence to print money.

The DD payment is an installment on credit, not a monthly insurance payment.

[Vaud]

Simon_m said:

I took out insurance cover 07/09/2016, I need 4x tyres the standard size is 225/55/17 which are limited for choice and quite expensive. I found out that 225/65/17 fit, there is more choice and they are cheaper but as they are not standard fitment I asked the insurance co who said I wouldn't be insured. I am also getting a remap and they wouldn't cover this either.

Double check the owners manual. It may specify the higher profile as well. If so, then it is not a mod but approved - and so they shouldn't charge for it.

To be honest I'm kind of surprised they are as it's not a performance enhancing modification, but it's probably a case of computer says no, along side the remap.

[Simon_m]

So I have checked their terms of cancellation and the below is all I can find both on their website and in the policy documents.


Cancelling more than 14 days into your policy
- £50
If you cancel more than 14 days into your policy, there is a £50 cancellation fee. We will refund you any outstanding days of cover, less the cancellation fee and the original £50 arrangement fee.

The call handler stated they would waive the £50 cancellation fee as it was they who could not provide cover due to modifications.

So by my reckoning they are within their rights to not refund the £50 arrangement fee and the days I was covered which I have calculated as £46.90. Giving a total of £96.90. It will be interesting to see what the other £148.76 of fees are made up of.

[Simon_m]

Still waiting for a breakdown of fees. The chap I spoke to today couldn't be specific on the costs other than one was for £90, the cost of a years breakdown cover...

When queried why I couldn't use the cover the answer was "Because we've cancelled it"

I asked if he felt it was legal to charge me for a service and then deny me the service by cancelling it, the answer "we haven't charged you though as it was paid monthly as an extra £9 per month" So what was the £90 for? "The cost to cancel the breakdown cover"

It would seem I have been charged £108 for breakdown cover for a year but can't use it as they cancelled it as soon as I paid for it?

The conversation went on for nearly an hour with many more unanswered questions and a load of smoke and mirrors.

Financial Ombudsman has been involved.

[Vaud]

Simon_m said:

Financial Ombudsman has been involved.

You should go through the companies official complaints procedure and escalations first.

And/or do a top down email (short and sweet) to the company CEO.

[Simon_m]

Vaud said:

You should go through the companies official complaints procedure and escalations first.

And/or do a top down email (short and sweet) to the company CEO.

Complaint lodged by phone and email to the company. If you'd have listened to the farcical conversations I've had you'd understand why I have escalated this.