Why are insurance cancellation fees not deemed unreasonable?

[vicmeldrew]

I don't get it - having cancelled motorcycle insurance today, because I sold the bike, and paid for 12 months cover upfront last year, Hastings Direct now want 46 quid for cancelling the policy.

So they have no risk now, the overall risk was less than they originally quoted on, 8 months cover instead of 12, and yet they want more money..?

why hasn't anyone tested this in court? It's like buying a loaf of bread, eating half and then being charged more by the shop for not eating the rest...

I know this bull**** is in all their T&Cs, but so what? how can they enforce these charges in the Small Claims court?

I say they are unreasonable as the customer is essentially being charged twice for the insurer's service; once for having cover offered and again for having a service withdrawn and the `estimated' inconvenience to the vendor - how is it reasonable for any company to charge varying amounts for providing no service?

Has anyone been sued by their insurer for non-payment of these charges, or refused to pay, then been hounded by bailiffs?

yours in penury etc
Victor

[TUTTSI]

Re: Why are insurance cancellation fees not deemed unreasonable?

Usually when you cancel a policy they cancel on short term risk and also often add a service charge. Are you saying they want a further £46 for cancelling the policy or are they charging £46 to come out of any refund?

Did you pay all the premiums or were you paying it in installments?

You would have to read the policy terms and conditions to see what their structure is.

Tuttsi

I don't get it - having cancelled motorcycle insurance today, because I sold the bike, and paid for 12 months cover upfront last year, Hastings Direct now want 46 quid for cancelling the policy.

So they have no risk now, the overall risk was less than they originally quoted on, 8 months cover instead of 12, and yet they want more money..?

why hasn't anyone tested this in court? It's like buying a loaf of bread, eating half and then being charged more by the shop for not eating the rest...

I know this bull**** is in all their T&Cs, but so what? how can they enforce these charges in the Small Claims court?

I say they are unreasonable as the customer is essentially being charged twice for the insurer's service; once for having cover offered and again for having a service withdrawn and the `estimated' inconvenience to the vendor - how is it reasonable for any company to charge varying amounts for providing no service?

Has anyone been sued by their insurer for non-payment of these charges, or refused to pay, then been hounded by bailiffs?

yours in penury etc
Victor

[vicmeldrew]

Re: Why are insurance cancellation fees not deemed unreasonable?

Had two phone calls from Hastings `Team Leaders' who tried to justify the fees as admin fees - surely the whole business of setting up any policy and ending it, whether at 6, 9 or 12 months requires exactly the same admin?

It's like saying that when you buy a tin of beans, or a loaf of bread at Tesco the checkout will add 2p for admin...it's just total rubbish - every business or service has admin.

After discusson they wrote to me asking for £26.42 fee, so a cheque has been sent as I am not well off enough to fight Hastings Direct in court.

The Hastings T&Cs in policy book only refers to 20 quid charge plus any insurance tax...there is no sliding scale printed, nor any details on what the charges are actually for. The premium was paid in full at the point of policy inception.

They attempted to swipe the money direct from my credit card - and BTW, why is that legal as well? How can it be reasonable that by making one purchase, the consumer agrees that any charges may be made in future by the vendor?

The whole thing leaves a sour taste - years ago, you got a refund on the unused portion of your insurance cover, now any deviation from a 12 month, no change of details policy is deemed an excuse to steal money on completely invented pretences. It's pathetic.

Am sick and tired of paying by credit card for services only to be swindled by utility, insurance, banks and other companies at a later date. The cheque ain't being phased out around this house I can tell you.

It's no wonder over a million people drive without insurance.

[TUTTSI]

Re: Why are insurance cancellation fees not deemed unreasonable?

You may want to have a read here on advice regarding insurance matters.

http://www.adviceguide.org.uk/index/.../insurance.htm

[MIKE770]

Re: Why are insurance cancellation fees not deemed unreasonable?

It seems they are able to charge a admin charge £25 I thought.

[borgbaiter]

Re: Why are insurance cancellation fees not deemed unreasonable?

hi

is it too late to not cancel the policy? your right it isnt right to be charged more for less cover no matter what there t&c say (unfair terms and conditions). sounds like you should be taking them to the small claims not the other way round. failing that id make a written complaint and then i you dont get it back take it to the insurance ombudsman. even if you dont win it will at least cost them more than they charged you.


BorgBaiter