What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
I've been charged a £100 insurance cancellation fee - is this fair?
I recently attempted to change my insurance policy as I had a change of vehicle and the premium went up by £440. When I questioned how this could be, I was given the explanation of increased risk, breakdown, reliability, etc. This didn't seem right, so I did a price comparison on various sites and with several other companies it was only a few pounds more expensive. When I informed my current provider that I was leaving, they slapped me with a £94.70 cancellation fee. Can this be right? They weren't anywhere close in competing with the other quotes. Is there anything I can do?
Asked on 16 October 2018 by Nicola Maguire
Answered by
Honest John
Under the 2015 insurance act, any cancellation fee should be "reasonable", i.e, no more than £30 to £40. Raise a complaint with the insurer, then raise a complaint to the Financial Ombudsman service. When complaints get taken to the Ombudsman, should the complaint be found in your favour, the FOS charge the insurer £500 for reviewing. If more people complaint about insurer's sharp practices it may make them think twice about doing it.
We give you the low down on how to save on insurance, little-known tricks and tips, what insurance groups mean and how to use insurance aggregators to beat insurers.
Insurance group finder and how to save on insuranceSimilar questions
My wife passed away recently and her car was insured in her name with me as named driver. I contacted the insurer, AA insurance, who told me they could transfer the policy over to me until renewal when...
My grandson has had his car insurance cancelled as they have said the black box showed that he was speeding. They have also kept £200 for a months car insurance - the original price is £6399. Is this legal?...
I recently cancelled my existing insurance policy due to a vehicle change and was refused repayment of £167 unexpired days by Surething (underwriter was Covea).The policy stated these days were repayable...
.jpg)
