Insurance cancellation fee

[littlesally]

My daughter, Hazel (scarily) passed her driving test and bought her first car.
After two months the car broke down - it only cost £300 so this was not entirely unexpected!
The insurance company want to charge her £200 to cancel.
Today in the post came the insurance agreement for her to sign which made me wonder - as she never signed an agreement does she still have to pay the cancellation fee?
Sally xx

[Guest]

Re: Insurance cancellation fee

How much was the insurance because £200 to cancel is very high?

[littlesally]

Re: Insurance cancellation fee

It was about £900, because she is under 25 and a brand new driver
Sally xx

[Paule]

Re: Insurance cancellation fee

the cancellation charges on my car insurance are as follows:

if you cancel
within 1 month 30%
2 months 40%
3 months 50%
4 month 60%
5 month 70%
6 month 80%
7 month 85%
8 month 90%
9 month onwards 100%

[littlesally]

Re: Insurance cancellation fee

It's not the amount I'm questioning, but as she never signed the agreement does she have to pay it at all?
Sally xx

[michael]

Re: Insurance cancellation fee

Are you sure that it is the original insurance agreement and not a declaration that you will return or destroy all the policy documents?

This is from Swift Insurance FAQ's

In accordance with the Road Traffic Act 1988 when a policy is cancelled you must declare that you will return or destroy, all copies of the Certificate of Motor Insurance relating to your policy (whether held in paper, electronic, digital or any other format). Upon cancellation you will need to confirm that you will do this within the next 7 days.

[littlesally]

Re: Insurance cancellation fee

It's the original, she hasn't signed anything.
She only phoned them today about cancelling
Sally xx

[michael]

Re: Insurance cancellation fee

Pesronally I think that 'not signing anything' is neither here nor there. Look at it from another perspective - suppose that during the last two months your daughter needed to make a claim. Would you be happy for them to refuse a claim on the basis that she hadn't signed anything?

In other words, you can't have your cake and eat it. If you accept that there was a valid policy and that your daughter's car was legally insured, then you should accept that they can apply a cancellation fee in accordance with their T&C's

[Paule]

Re: Insurance cancellation fee

Based on my insuarnce policy you are getting a better cancellation deal than i would get

If you were with my insurers you would have to pay in the region of £400 to cancel.

Its just one of these when you are staring out on insurance. when the insurance costs more than the cars worth. c

can she not get another cheap car to keep the insurance on, or even a cheapo moped, then at least she will have a years no claims at the end of the policy.

[littlesally]

Re: Insurance cancellation fee

She is saving towards another car. It will cost £300 ish to fix the car so is wavering between buying and fixing.
You're right Michael, but I don't see the point of sending something to be signed if it's meaningless. What is the point?
Sally xx

[deemac]

Re: Insurance cancellation fee

Sal just my opinion hun but if i were Hazel i wouldnt cancel
Carry on paying if she's going to get another car as it all counts towards her valuable no claims bonus
She's not going to have an accident while she's off the road is she?
How much is the monthly payment?

[argentarius]

Re: Insurance cancellation fee

I agree with others' comments about keeping the policy going and transferring it to a new car if she changes it.

You are very unlikely to be able to transfer a car policy to a moped, though.

[littlesally]

Re: Insurance cancellation fee

She paying out £90 a month, is it worth carrying on paying out?
Sally xx

[littlesally]

Re: Insurance cancellation fee

Just as well she hasn't cancelled as she was driving my car and hit the car in front!!!
Stuck in very slow traffic, her bag fell off the passenger seat, instead of braking she bent to pick up the bag while continuing to crawl foreward - the car in front stopped!!!
My bumper is now shattered and she cracked the bumper in front - and has since found out that the boot is also damaged (suspicious about that bit!)

So I think she will be claiming then cancelling!
Banned from my car.
She also has two parking tickets - how is this possible when she has only been driving two months?????
Bloody kids lol
Sally xxx

PS Why aren't bumpers made of material that will bump and not shatter?
Is there anywhere you can buy a rubber cover for them? That's a serious question btw

[Guest]

Re: Insurance cancellation fee

Sadly, you will probably find that if a claim is made then the full amount payable under the policy becomes due, even in the event that it is cancelled.