I didn't know that!!! Don't seem right for some reason but hey ho... I did find a comparable quote to Churchill's with Privilege online that I wanted to accept but when phoning they told me that 'online' privilege is different and if I wanted to take that one I would be required to cancel (@ £47.70) the existing policy and take the online offer separately, something to do with mid-term alterations not being possible. If I simply changed vehicle on existing policy then a £15 admin fee applied and my premium would reduce by a couple of quid. Strange situation and anti-competitive for sure.

I want to thank posters for giving me the gumption to query Privilege insurance mighty cancellation charge and here is why: I managed to get a discretionary waiver of the £47.70 charge! Brilliant eh... I politely explained my situation ie not working through long term health condition, car on policy scrapped as uneconomical to repair, replacement vehicle chosen (800cc Matiz) to minimise outgoings and running costs and stressed that I DID try to stay with them but unfortunately they could not match Churchill's price. Explained that the charge would more or less wipe out any savings that I had made, again stressing my personal situation to no avail I then asked for an explanation as to why the charge for cancelling the breakdown element (c £10) was about a fifth of the one for cancelling the vehicle policy (£47.70) and that if it was a genuine 'admin' cost then why the massive difference for basically an identical process, I suggested that the charge appeared to be more linked to the cost of said policy rather than the cost of administration re cancelling. The advisor put me on hold while she spoke to her manager and hey presto, charge waived on discretionary basis. I stress that I was polite and courteous at all times and I feel that this, although difficult to maintain perhaps, pays dividends and is a contributing factor to the outcome.. Yours, very relieved and faith in human nature restored Andy