Hi everyone, need advice

[greggyboy]

hello I'm needing some advice on issues around cancellation of my car insurance. I recently cancelled my car insurance with go skippy.com (although the contract for payment was with Creation finance), after only a month as my car had irreparable engine damage. I was paying a monthly direct debit of 41.31. The day after I cancelled my insurance the DD came out of my account. They have refused to refund me and have sent me a bill for an extra 88.29. Overall they are trying to charge me 262.31 for one months car insurance. Can anyone point me to the right forum?
Many thanks

[des8]

Re: Hi everyone, need advice

Hi there, it's some years since I was in the insurance game but as a rule of thumb if you cancel a policy after only one month, the insurance company will require about 30% of the annual premium. As you are paying monthly there is probably a finance company involved, and they will require extra for cancelling the loan early. And of course on top of that your broker is probably charging an administration fee of anything up to £50.
Your policy wording will tell you what the insurers want if you cancel early. Their charge covers the original setting up costs which are the same for 12 months or 1 month insurance. This applies even if you pay the premium up front.
As you are paying monthly, what you have really done is to borrow the money from a finance house, who have paid the insurance company. As the loan is effectively being paid early you're paying a penalty to the finance company as well.
so called Insurance brokers now add all sorts of administration charges of their own. In the old days (that shows my age!) brokers only got commission from the insurance companies. If they were no good they didn't keep clients and went out of business.
Read the documents you should have been given and I'm pretty certain it will detail the charges.