Cool off period?

[Phil3822]

Just checking, is it correct I have a 14 day cool down period after taking out motor insurance? As in within the 14 days I can cancel for a full refund?

[Guest Lueeze]

Yes that is correct.

 

Are you going to cancel then? Just double check the documents you recieve 1st...

[Phil3822]

This is the reason I'm cancelling. Had the policy since Wednesday and I have still recieved no documentation or covernote. New vehicle needing tax, there customer service department has been rubbish to say the least.

 

Will I have to pay for Time On Cover?

 

Thanks again

[Guest Lueeze]

Loula is the best one to ask on this but im not sure she is around right now...

 

I will ask her to take a look when she gets on! Please be patient for the answer as i do not know it myself!

 

Thanks

 

Lou x

[Yorkyclaims]

You will get the full refund. However, they will void the policy "ab initio". This means that the policy will never have existed in the Insurance Companys eyes, so if a claim is made by someone claiming you hit them 10 days ago you will have to pay yourself.

 

however, if you have already made a claim you will get no money back.

 

Hope this helps

[Phil3822]

Thats fine, thanks. If I receive no cover note or details today I will cancel to go with a local company who hopefully will have a better customer service team.

[Phil3822]

Just called them to cancel. The monkey advisor said before they can can cancel they will charge £75 admin fee plus Time On Cover which will equal around £120. Funny enough just about the same as my deposit. I am not happy!

 

They also said I will be on cover until they recieve written confirmation that the policy is being cancelled. Which means I cant go with this local company because effictivly the vehicle is already insured.

 

I need my car now! Not sure what to do. Typically, they had no supervisor in the office and have no complaint section.

[Guest Lueeze]

I would call again....

 

This is totally unacceptable! Do they have a website where you can view the Terms and conditons?

[jonni2bad]

AB INITIO - Lat. 'from the beginning'

 

For the masses, you understand !!

[Phil3822]

I got the policy from Confused.com. The broker is called Insure It All, the underwriters are HSBC.

 

The following comes from the link from Confused.com "During 14 day cooling off period there is a cancellation fee of £75 plus insurer’s admin fee"

 

I took the policy out over the phone after getting the quotes so I was not told of such a fee. If I were, I would not have taken the policy.

 

Thanks for your response.

 

Not sure what to say if I call again!

[Yorkyclaims]

In the long term this is another case of excessive charges. Cannot see how they can justify the £75. Might be worthwhile you speaking to an advisor to see what they do for the £75 - getting them to shoot themselves in the foot. With regards to the cancellation being in writing ask them for their email address/ fax number if possible and try to cancel this way - If faxing keep the notification slip confirming delivery, and get delivery notification on your email.

 

I have a feeling that they have to notify you over the phone of the cancellation process, or at least tell you where to look for them, but I'm not sure about this - I'll have a look on FSA - does anyone else know????

[Yorkyclaims]

Found this on FSA

 

The information about cancellation that the insurance intermediary must provide to the retail customer in accordance with ICOB 5.3.4 R(3) or ICOB 5.3.6 R(1)(f) is:

(1) the existence or absence of a right to cancel in accordance with ICOB 6.2.1 R; and

 

(2) where a right to cancel exists:

 

(a) the duration of the cancellation period, in accordance with ICOB 6.2.2 R;

 

(b) the conditions for exercising the right to cancel, including information on the amount which the retail customer may be required to pay;

 

© the consequences of not exercising the right to cancel; and

 

(d) how the right to cancel may be exercised, including the address to which the notification of cancellation should be sent.

 

Links are on http://fsahandbook.info/FSA/html/handbook/ICOB/5/3#D98

 

this means that, when taking out the policy they need to inform you of the address you need to send the cancellation note to. I am guessing that they did not give this info to you, so they are in breach of the FSA agreement.

 

there is also a section on excessive charges, ICOB 2.10 Excessive charges to retail customers, which states that charges cannot be excessive.

 

I suggest you ring up, start saying taht they are in breach of the FSA requirements, and you are willing to complain to the FSA, and they will soon find a manager for you to reason with.

 

hope this helps!!!!!

[Yorkyclaims]

Oooh, was in a rush when I posted the last entry.

 

Just read it back & it sounds a bit complicated....

 

pm me if you need clarification!

[Phil3822]

Thanks all for your help. The above made sense so thanks again. I've contacted the FSA, they have taken details and are sending me complaint details.

 

Thanks again.

[Titan13]

i would like to cancel my car insurance within the 14 day cooling off period, but i made a claim a couple of days ago because my car was stolen. Is it possible to cancel this claim (its a very cheap car) and still get the full refund within the 14 days?

[xrchris]

I answered the other post you made regarding this.

[rudekid48]

There is a valuable lesson hidden away in this thread...

 

Most people seem to think that price comparison / aggregator websites such as confused, moneysupermarket, uswitch etc are there to provide a service! Do people actualy realise that these companies make huge profits and charge the Brokers a fee for each sale that is made (around £40 on average).

 

As the sites are also selling purely on price, the brokers are also having to cut their commissions to appear at or near the top of the list and so usually ending up selling the policy at a loss!

 

So is it any wonder that they apply high charges?

 

Sooner or later the great british public will wake up to the extremely clever marketing that they are subjected to.

 

Companies like confused do not provide a public service, they are extremely clever, profitable and ruthless businesses.

[xrchris]

Sounds like you were reading that straight from a Direct Line press release.

[colin kc]

Hi, first post here, please be gentle with me.

 

I have recently cancelled my insurance with Bennetts (6 days after the renewal date) & was paying, prior to this by direct debit through a credit company (Amber credit)

 

Now I have recieved a letter stating:

 

As outlined in your policy booklet, cancellation prior to your renewal date incurs a cancellation fee and charge of a short-term rate for the insurance cover you have recieved under this policy.

 

If the cancellation date is within the first 14 days, then you will only have been charged for the Time on Cover used.

 

Transaction Value

Outstanding balance (Premium) £31.83

Cancellation credit £0.00

Cancellation fee £0.00

Total Balance Due £31.83

 

 

 

 

 

Now, they have stated, several times that their is a £30 charge for cancellation & have sent me several letters demanding the monies, but I am loath to cave in to them, as they seem to be trying to bully me into paying for a spurious charge, am I right in wanting an explanation?

 

 

P.S. the 6 days "time on cover" can't come to 1/4 of the yearly premium caN IT?

 

 

tia

 

 

Col

[colin kc]

Oh!

 

The thread isn't coming up on "new posts" is that right?

[Darkangelsdelite]

Hi Colin,

 

As i understand it, the 14 day cooling off period applies to all products regulated by the FSA whether it be home/motor insurance or a banking product. Its to give consumers time to make sure the product suits their needs and to cancel it if they find out that it doesn't.

 

There would normally not be a charge for cancelling within this period (although looking at the posts above it would appear some companies are still trying it on) and many insurers will in fact give you a full refund providing no claim is made.

If you end up paying for time on risk, then this is simple to calculate.

 

Annual premium, Divided by 365, multiplied by the days cover used.

 

E.G if you paid £500 a year and used 6 days cover you would owe £8.22 (500/365 = £1.37 per day, * 6 days is £8.22)

 

So unless your annual premium is £1885, then you're probably being charged a cancellation fee, either that or they cant add up!

 

Hope this helps

 

 

DA

[colin kc]

...then you're probably being charged a cancellation fee.

 

 

Thanks DA, but if they are charging me this fee, can they?

[Darkangelsdelite]

From what i understand of it, no.

BUT i'm sure one the legal experts on here will come along and answer this in more detail.

[colin kc]

Hello all you legal experts out there, can you help please, otherwise it's gonna get to the point where they'll send the boys round (figuratively) & I'll have to pay them

[Tiger Swiftly]

Sorry to bump this, but I was looking for an answer and Google brought this thread up...

 

Needed some car insurance for the next month and picked up a short term Pas as you Go deal from eCar Insurance. 5 days later and my car died broke down. Therefore I no longer need the insurance.

 

However, it appears that I cannot express my right to cancel as...

 

1) My cover had already started and therefore the 14 day cooling off period does not apply.

2) I am on a short term deal (under 1 month... by 1 minute, the cheeky buggers) and therefore the FSA right to cancel does not seem to apply.

 

Therefore I have had 6 days insurance, and now I can't get any kind of refund....

 

Any suggestions?