Cancelling insurance and cancellation fee

[100%WHU]

I have sold my car, and no longer need car insurance. But my insurance company are insisting on me paying a £75 cancellation fee and a % of remaining premiums. Is this right? Why should I be penalised for selling my car.

[Conniff]

This is how it has always been. Are you planning on getting another car, if so then suspend your insurance and not cancel it.

[BankFodder]

Cancellation fees which exceed actual administrative losses are unenforceable because they are contrary to UTCCR - http://www.legislation.gov.uk/uksi/1999/2083/contents/made -

 

especially

 

(e)requiring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation

http://www.legislation.gov.uk/uksi/1999/2083/schedule/2/made

 

For your insurer to require this is not only contrary to UTCCR but it also unfair treatment under ICOBS but as Connif has pointed out, this is how it always has been and what it needs is some inurance customers to take the matter to a county court as a small claim.

No one seems to have the bottle for it.

[bwfs2003]

but as Connif has pointed out, this is how it always has been .

 

Not so. I worked in the insurance industry for 20+ years. "Cancellation Fees" were never heard of . This is something recent.

[Conniff]

Not so. I worked in the insurance industry for 20+ years. "Cancellation Fees" were never heard of . This is something recent.

 

I remember that also, I just didn't think there was anyone as old as me

 

 

And that would be 'recentish', it has been in operation for many years, ever since someone had the idea of how to rip-off customers more and like all these doh companies, they all followed suite.

[JoeyJoeC]

So these fee's can be seen as a penalty and thus don't need to be paid? I'm selling my car in August and will defiantly dispute this. How much can they actually charge you without it being a penalty?

[unclebulgaria67]

Not so. I worked in the insurance industry for 20+ years. "Cancellation Fees" were never heard of . This is something recent.

 

They were introduced in the late 1990's and were party to do with comparison site league tables. Insurers mucked around with their rates to achieve a good position, but then hid many additional charges e.g policy amendment and cancellation charges.

 

If you check the comparison sites, you will find those that are the cheapest, will have the highest charges. Something for people to think about if they are planning to change their cars or move house within 12 months.