Insurance Cancellation Fees
Discussion
I am inusred with Kwik Fit and I recently bought a new car, their quote was much higher than some others so I took up the cheapest as you would and went to cancel but Kwik Fit are wanting £154 to cancel the policy. Now I excpect a admin charge of sorts but that is ridiculous. Of course the chap stated it was in my terms and conditions and if I don't pay it they take me to court for it. Presumably I don't have a legal leg to stand on. It is forcing me to cancel with the new company (hoping there is a 30 day cool off period) and stick with them 
Is this a normal amount to be charged?
Is this a normal amount to be charged?
I guess it depends on how you pay for the policy. If you don't mind, did you pay the annual premium up-front, or do you pay it monthly?
When I've cancelled insurance, I've been refunded the amount of premium left, accurate to the day, less a £17.50 admin fee (which seems to be the standard sort of amount). It's possible that they're docking you the rest of the month's premium, or charging you an extra monthly payment if that's how you do it, but the scale of the fee depends on the premium itself?
When I've cancelled insurance, I've been refunded the amount of premium left, accurate to the day, less a £17.50 admin fee (which seems to be the standard sort of amount). It's possible that they're docking you the rest of the month's premium, or charging you an extra monthly payment if that's how you do it, but the scale of the fee depends on the premium itself?
Edited by McSam on Sunday 13th June 09:59
I pay monthly and the insurance quote for the year was £450ish, I had a logical thing in my head that I stop paying and they stop covering me for insurance. I know I am in a year contract but thought it was fairly normal to cancel a policy if you got a new car and they couldn't give you a decent quote for it and expected to pay something for doing it but £154 just seems stupid to me.
Insurance ? Logical ? 
You are completely at their mercy - but the general rule is that you enter into a contract for a full year, no matter how you pay. If you choose to break that contract the company can enforce the contract terms which you have already agreed to and can probably argue that it costs them more to run a month to month payment system than a lump sum.
You are completely at their mercy - but the general rule is that you enter into a contract for a full year, no matter how you pay. If you choose to break that contract the company can enforce the contract terms which you have already agreed to and can probably argue that it costs them more to run a month to month payment system than a lump sum.
sday12 said:
Stop Press: Kwik Fit in rip-off shock!
I don't even remember how I ended up with them in the first place, they have always been quite expensive. The first quote they gave me on a MK2 MR2 was £1200, for a 1k car.
And yeah that was my first mistake, applying logic to car insurance!
Bernard80 said:
sday12 said:
Stop Press: Kwik Fit in rip-off shock!
I don't even remember how I ended up with them in the first place, they have always been quite expensive. The first quote they gave me on a MK2 MR2 was £1200, for a 1k car.
And yeah that was my first mistake, applying logic to car insurance!
Same thing happened to me. Kwik Fit offered the cheapest insurance on comparison sites so I went with them. They were pretty sound until I flogged my old car and got a new one. I'd checked online and the insurance quote was actually less than what I was currently paying, so I figured I'd ring them up and they'd just swap it over no probs. Then they come out with all that s
t, ended up cancelling purely out of principle.
t, ended up cancelling purely out of principle.x type said:
Bloody hell!, £40 cancel fee in the 1st 14 days! seems expensive!.I can't ,just insured a 3rd car with them 
Bought it ready for the daughter to use when she's 17 , insured now for me and mrs to use a 1999 clio 1.2 £181 tp only no windscreen cover £38 extra ) no legal protection (£45 extra ) no no claims as we use ours on our own cars
cheapest I could find on internet
tried a multi car policy thingy they wanted £434 for it
Bought it ready for the daughter to use when she's 17 , insured now for me and mrs to use a 1999 clio 1.2 £181 tp only no windscreen cover £38 extra ) no legal protection (£45 extra ) no no claims as we use ours on our own cars
cheapest I could find on internet
tried a multi car policy thingy they wanted £434 for it
I hope swift dont have the same cancellation fee as if Kwik Fit dont take my begs and pleads am going to be stuck with them I think Sometimes the cheapest policies are the ones with all teh hidden fees.
I took out a motorcycle policy, premium was £110.
To cancel the policy halfway through, they wanted £50 (I sold the bike).
After speaking to their head office, they reduced it to £18 as it was ludicrous in proportion to the cost of the policy - will never be using them again.
They also wanted £30 for a change of address, and £25 to add someone to the policy.
Mental.
I took out a motorcycle policy, premium was £110.
To cancel the policy halfway through, they wanted £50 (I sold the bike).
After speaking to their head office, they reduced it to £18 as it was ludicrous in proportion to the cost of the policy - will never be using them again.
They also wanted £30 for a change of address, and £25 to add someone to the policy.
Mental.
Uhura_Fighter said:
From money saving expert (Thread started 2008 but still running) - The Great 'Car Insurance Cancellation & Administration Fee' Hunt
"This is a thread I've compiled listing all the known charges that car insurance companies may charge."
clicky
Some of the cancellation fee's on that site are incorrect (the only ones i can confirm are the insurer i work for) can't work out how to amend it for them?"This is a thread I've compiled listing all the known charges that car insurance companies may charge."
clicky
ZOLLAR said:
Uhura_Fighter said:
From money saving expert (Thread started 2008 but still running) - The Great 'Car Insurance Cancellation & Administration Fee' Hunt
"This is a thread I've compiled listing all the known charges that car insurance companies may charge."
clicky
Some of the cancellation fee's on that site are incorrect (the only ones i can confirm are the insurer i work for) can't work out how to amend it for them?"This is a thread I've compiled listing all the known charges that car insurance companies may charge."
clicky
Sorry only read money expert, don't know why you can't post/update the original thread.
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