Cancelling insurance - feel like I'm being ripped off??

[bertelli_1]

I had my car up for sale for a while but since it wasn't selling I had to renew the insurance in September. I paid monthly. Now its sold I've just cancelled the policy & been told I owe them £80 as the refund from the insurance co does not cover the outstanding costs. I realise the refunds generally work on a sliding scale but didn't think this would apply as I'm paying monthly. So I've got 2 months insurance for the price of 4. Lucky me. I'm guessing I should just accept the costs, or can I argue my way out of it?

[Soovy]

bertelli_1 said:

I had my car up for sale for a while but since it wasn't selling I had to renew the insurance in September. I paid monthly. Now its sold I've just cancelled the policy & been told I owe them £80 as the refund from the insurance co does not cover the outstanding costs. I realise the refunds generally work on a sliding scale but didn't think this would apply as I'm paying monthly. So I've got 2 months insurance for the price of 4. Lucky me. I'm guessing I should just accept the costs, or can I argue my way out of it?

You're paying monthly but you bought an annual policy. You're getting off lightly.

[Bill]

You pay them monthly via a credit agreement, you don't pay for insurance per month. IYSWIM.

[tomsugden]

I had this with an insurer, and argued the case. I told them if they made me pay it I would never use them or their subsidiaries again, and see that all my family did the same. The charges went away.

[Chrisw666]

To pay monthly you will have accepted credit terms, the fee will likely be part of that.

[s31tof]

If you knew your car was not going to be yours for ages- what was the reason for you setting up a years policy and not looking at the cancellation fee's?

• edit* for knew not new! lol

Edited by s31tof on Friday 25th November 13:02

[Pork]

I got royally bummed when I took out a poilicy last year. I'd bought a second car just weeks later and decided to put both cars on the same policy. When I asked my current insurer, they were pretty unhelpful. IIRC, the premium was £400 or so, which I'd paid in full. When they refunded it, for less than 5 weeks insurance, they charged me more than half my policy total.

Stunned.

And despite my slight bleating, all I got was, effectively, tough luck! Stupid really as that has now blacklisted them (its a well known broker, site sponsor I think) and they wont be approaced for a quote going forwards.

[Soovy]

s31tof said:

If you new your car was not going to be yours for ages- what was the reason for you setting up a years policy and not looking at the cancellation fee's?

This.

You signed up for it!!!

[Disastrous]

Soovy said:

s31tof said:

If you new your car was not going to be yours for ages- what was the reason for you setting up a years policy and not looking at the cancellation fee's?

This.

You signed up for it!!!

Is there much of an alternative?

It's now illegal to have a car taxed but not insured so what do you do if you're trying to sell a car and it takes longer than planned and your insurance runs out? Does anyone who offers monthly insurance do so cheaply enough that it's viable?

Seems that insurers are out of step with the law in this regard.

[s31tof]

Disastrous said:

Is there much of an alternative?

It's now illegal to have a car taxed but not insured so what do you do if you're trying to sell a car and it takes longer than planned and your insurance runs out? Does anyone who offers monthly insurance do so cheaply enough that it's viable?

Seems that insurers are out of step with the law in this regard.

You can do better than monthly insurance...last time I checked there are many companies that offer day to day cover so you are not 'forced' into taking out a years policy.

[randlemarcus]

Do what I did, and get a renewing monthly policy. Your risk is priced one month at a time, so no cancellation fees etc. Worked out about £100 more expensive than an annual policy, but then you take the stupid APR for monthly payment into account, and its a smidge cheaper.

[Soovy]

randlemarcus said:

Do what I did, and get a renewing monthly policy. Your risk is priced one month at a time, so no cancellation fees etc. Worked out about £100 more expensive than an annual policy, but then you take the stupid APR for monthly payment into account, and its a smidge cheaper.

*bing*

Is the right answer.

[nonuts]

Soovy said:

s31tof said:

If you new your car was not going to be yours for ages- what was the reason for you setting up a years policy and not looking at the cancellation fee's?

This.

You signed up for it!!!

This, when I was in the same situation back in April, I asked how the monthly fees worked and they explained it's credit but the insurance is still paid in full (at least via A-Plan), very helpful and made it clear the easiest way was to pay up front the cancel once the car is sold. Got my ~£700 refund when I sold the car a few months later.

[Disastrous]

Soovy said:

randlemarcus said:

Do what I did, and get a renewing monthly policy. Your risk is priced one month at a time, so no cancellation fees etc. Worked out about £100 more expensive than an annual policy, but then you take the stupid APR for monthly payment into account, and its a smidge cheaper.

*bing*

Is the right answer.

Fair enough; I'd be looking for more than a smidge though, I reckon! The reason I ask is I recently had to do the same as the OP as the difference was negligible and it annoyed me at the time.

[randlemarcus]

Disastrous said:

Fair enough; I'd be looking for more than a smidge though, I reckon! The reason I ask is I recently had to do the same as the OP as the difference was negligible and it annoyed me at the time.

Easily solved then: find a truly ridiculous APR, and it gets cheaper.

The real cheapness comes when you sell the car, as you simply inform them, and they stop charging. No refunds, no premium calculations, no sucking of teeth. It's like your lady friends - you aren't paying them for the service, you are paying them to go away afterwards