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insurance rip off


ips

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Well here is a thing.

Sold the scooter yesterday so rang insurer this morning to inform them that I was no longer the reg keeper and to cancel the policy. (cost was £62 pa) They inform me that there is a £36 cancellation fee. I replied ... eh. And if you dont cancel then when the new keeper insures it then it flags up on the system and automatically cancels my policy as you cant have two insurances running, and they will then send me a bill for £36 cancellation fee...... I replied summat on the lines of......eh. Do you want to cancel he says ... I replied summat on the lines of .... your avin a larf. No I may as well wait untill you send me a bill then argue the toss about it.

Unbeleavable.

Mini ips changed her car details yesterday to her new address in windsor (has 4 mths remaining on policy) and they refunded £100. That was "diamond for girls" so the moral is insure with them and not swinton.

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Cancelation fees on general insurance policies are always a rip off. You can and should check with the provider what the hidden costs are when you take the policy out. Ask if any penalty clauses apply before setting the policy up.

 

However most providers will alow a change of vehicle with no charge and even a reduction if the new vehicle is cheaper to insure. The opposite being true of course if the new vehicle is more expensive to insure.

 

My advice with general insurance is always be wary of the cheapest - you are often just purchasing a bit of paper that says you have an insurance policy and are therefore "legal" - But some providers are so bad they never ever have any real intention of paying out unless they can help it.

 

Get your broker to confirm the historical claims paying history AND the financial streangth of the company in question. Past user reviews are a worth researching as well.

 

The cheapest is rarely best unless you like dealing with sarky twelve year old administrators who do not give a stuff at the time you need to make a claim.

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I sympathise but I assume the cancellation clause is in th policy documentation you received and you therefore accepted it. If it is not then you can refuse to pay. However I suspect the £36 is a standard cost regardless of premium and yes, a bit of a rip off, but as with many things in life, is there to catch the unwary.

 

Unfortunately it sounds like you will only get £26 back whatever you do and that is assuming the Policy still has the full term to run.

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In order to have insurance you must have an "insurable interest" Clearly if you do not have ownership of the "insured" vehicle you cannot insure it and consequently there cannot be effective insurance.

I came across the same point last year when I sold my motorhome. The insurer wanted a £25 cancellation fee in exchange for a £12 refund. I refused and allowed the policy to run out. Nothing happened and no claim for a cancellation fee arose.

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ips,

 

Could you ask them to suspend the policy and hold any remaining premium until you buy another scooter? Hopefully thereby not incurring a cancellation fee.

 

You never know, you may just buy another scooter one day :'( :'( :'(

 

Keith.

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Sort of on this topic, my wife picked up a gem from the radio today. Someone moved house, but forgot to advise their car insurer beforehand, only remembering when they were in. On being given the details of the new address, the insurer said we do not cover that postcode, we are cancelling your insurance forthwith, and levying a cancellation charge: you must re-insure your vehicle immediately if it is presently parked on the road. It was!

 

The subsequent advice was that although the insurer's reaction was abrupt and extremely unhelpful, they were entirely within their rights to summarily cancel the policy as they did!

 

So, if considering a move of house, check with your vehicle insurer before you buy!

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Guest pelmetman
Brian Kirby - 2012-03-10 6:02 PM

 

Sort of on this topic, my wife picked up a gem from the radio today. Someone moved house, but forgot to advise their car insurer beforehand, only remembering when they were in. On being given the details of the new address, the insurer said we do not cover that postcode, we are cancelling your insurance forthwith, and levying a cancellation charge: you must re-insure your vehicle immediately if it is presently parked on the road. It was!

 

The subsequent advice was that although the insurer's reaction was abrupt and extremely unhelpful, they were entirely within their rights to summarily cancel the policy as they did!

 

So, if considering a move of house, check with your vehicle insurer before you buy!

 

I heard the tail end of that :D...........I think they'd moved from Exeter to North London.............very dodgy place London :D

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