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Payback time

We decided on retirement to reduce to one car, and sold my wife's. Phoning the AA Insurance the next day to cancel, I was told that no refund was due, despite having four months to run on the policy. The operator said that as the premium was low, it didn't qualify for a refund. Is this standard insurance practice, or another modern moneymaking scam. I thought the AA was a "respectable" company.

Asked on 4 September 2011 by AW, Scourie, Sutherland

Answered by Honest John
I'm afraid it is. The administration fee swallows the remaining premium. Nothing is for nothing. The AA is now owned by a Private Equity Firm. This is how Private Equity Firms behave in order to maximise profits.
Tags: insurance
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