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Fee charged for cancelling my car insurance policy

When taking out a motor insurance policy, my advice is read the small print very carefully, particularly the section that mentions cancellation rates and fees.  In the case of my insurance policy, it turns out that the cancellation fee is pro-rata plus one month.  Think carefully when you decide to cancel how much money you will lose and bear in mind theres also possibly the No claims bonus you may loose as well.

I had to sell my car as the road tax and MOT were due to expire within weeks of each other.  There wasn't much wrong with the car, but I just couldn't afford the 150-200 it would probably take to keep the car on the road.  The reason things are so tough is that I went self employed last year and I still barely make 800 a month (before tax and NI).  My insurance policy still had over a month so I figured as I was paying monthly Id save a little bit there as well.

Fortunately I don't need the car every day and yes, I am aware that a car for me is really a luxury that I don't actually NEED.  I don't have to commute to work and my partner has a car anyway.  It does come in useful to take my son out somewhere if we're on our own and its useful for picking up a large amount of shopping etc, apart from that I can cycle instead.

Cancelling my car insurance policy All this and the financial side of things helped me come to the decision that it was time for the car to go.  So I listed her on eBay a week ago and the car was picked up today leaving me 99 richer wow, what a bargain!

As I mentioned earlier I still had some time left on my insurance policy, about 5 weeks in fact, so rather than just stopping the direct debit I decided to ring up and cancel first.  That's the right way to do things and it all went straight forward until I was told that I'd have to still pay 14 next month as part of the insurance cancellation fee.

What the heck is that all about? As this was the final month anyway Id only be saving about 6.  I decided to carry on and cancel my policy anyway because, well lets face it, six pounds is cash in the bank and I could really do with it.  Even funnier, they actually expect me to send them back the insurance certificate - at my cost!

I can understand a cancellation fee for an insurance policy that hasn't been running very long, but so close to the renewal date it's quite frankly ridiculous.  They've had very nearly the whole year out of me and I just wanted to cancel that last month.  Im paying them 14 for what?  I reckon it's a fee to press a button and to punish me for deciding to stop paying for something I don't need.

By: The uninsured

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Why do we have to pay to insure an item if it is no longer in ownership. Whether an insurer claims they have paid your quote in full should be refundable to the insurer and broker. Swindle Insurance wanted a cancellation fee plus outstanding monthly car insurance, it should be changed by law.

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Angrybird - 21-Jul-14 18:44

Avoid go skippy, I took out insurance on a car only to realise that their questions were quite misleading and asked about my second car and how many years discount I had, which I thought they meant on my second car so I put in 15 years, but I was taking this insurance out with no no claims discount. When I realised the mistake I rang 5 days later to cancell it as I didn't have 15 years discount for this car. I was charged £50 set up direct debit fee and £20 cancellation fee!! I asked if this was the charges for 5 days insurance and my 14 days cooling off period only to be told if it had been over the 14 days it would have been £50 cancellation fee!!! Is this really legal??

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Michelle Daniels - 3-Jun-14 20:13

Agree with the Avoid Swinton - my friend bought a car for just over £6500 and insured it fully comp with Swinton. 3 months later it was stolen from his driveway. The police never found it and Swinton refused to pay my friend a penny because they said that 1 month earlier he had been caught on camera and given a fixed penalty of 3 points for speeding. He wasn't aware of the points and yet Swinton refused to pay out because they said he hadn't informed them. As he told them - he wasn't aware of them himself!!! Then to add insult to injury they said that he would have to finish paying for his policy or be charged cancellation fees! Unbelievable!

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not all companys are bad but this one is! - 27-Feb-14 22:33

Avoid Swinton! Last year they sent me email for car insurance £190, then they phoned me up since my renewal was due and I ended up with quote for £540!. I missed direct debit this month they cancelled my car insurance. I called them up as I had 2 cars, I had to pay £390 cancellation costs for remainder of balances, got 2 new quotes as I had cancelled insurance id have to pay £1744 for both cars now, thought id no choice but to insurance cars for that amount and did and also paid 2 deposits of £150. I went online to go compare, filled out details for the 2 cars, ticked the box "have you had insurance cancelled", and got both my cars for £569 a year, saving me £1200 from swinton. Phoned this morning and cancelled both swinton insurances within their 14 day period, but only got refund £27 instead of £72 deposit I paid for one car. They told me as I had insurance cancelled due to my dd being missed, no company would take me on, hence the 2 companies they done their search on and costing me £1744!

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P74 - 25-Feb-14 12:06

Avoid tesco bank for car insurance! They tell me they have written to me but ive hear nothing until a letter dated the 16th sept sayin i have 7 days to pay a missed payment. I had money in my account but they say my bank cancelled the d/d. My bank say they didnt. I rang to resolve this today yo be told it was cancelled today. Today is the 7th day??? I was told i had to pay for the last 23 days cover and start a new policy but wouldnt be allowed a d/d and had to pay in full. I asked how much 23 days was an they said 158.83. When asked what this was for thwy replied the missed payment, plus cover and also my breakdown cover for the full year. I had to pay this so i could obtain insurance and will be putting in a full complaint especially after learning i have paid for 1 yr rac cover which i cant have now as they cancelled my policy. They offered to cover me again and would give me a quote and it came back at almost 800. I only took the other policy out in august and was quoted 550;with breakdown. How can they justify this? Their reply is that premiums change daily!!! Im really p*****d off to learn i have paid for 1 yr breakdown cover that i have had for 23 days ans is now cancelled. Surely this cant be legal??

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effedoff - 24-Sep-13 01:04

Avoid Swinton Insurance! I was insured for an old banger and when I moved addresses from the city to a village, it costed a lot more. When I bought another car and scrapped my banger, the insurance they quoted was even higher (which I couldn't afford). I had some quotes from comparison websites which had much lower quotes.

In end I had to pay a £110 cancellation charge, even though I was a returning customer. This worked out cheaper with my new insurer than to continue with Swinton. Never again with those blood suckers.

They previously tried to get me to take up their breakdown recovering, which was a lot more expensive than other offers.

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Fleeced - 5-Sep-13 21:16

I have a problem with Lloyds TSB. Our car has failed its MOT,and have been told it isn't worth fixing,so we have decided to scrap it. We have bought a van which is more in keeping with our needs,but when we rang Lloyds to change the monthly insurance,we were told no can do,they don't insure vans. We now have the problem of cancelling our insurance for the car which isn't due for renewal until November and finding a new insurer but how much will this cost?
I guess it will teach my partner and I not to assume car insurance covers every vehicle.

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Mand - 15-May-13 14:22

Would agree with you all about Swinton, got policy from them a few weeks ago which was £148 phoned to cancel it and they charged me £80.00, what a joke.

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Belle - 29-Apr-13 18:08

Whenever you take out an insurance policy, ask the advisor what the charge is for changes and amendments to the policy (like change of address or replacing a vehicle) because some companies are extortionate. I moved house and was charged £50 for the policy change! I then happened to change my car and guess what? Another £50 charge. Outrageous. I discovered it was cheaper to cancel the policy and re-insure with Aviva even though I'd pay pro-rata cover for cancelling. Aviva has £22 change charges admittedly, but they offered a much cheaper multi-car premium - in fact, almost half of the other company!

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Mia the Cat - 25-Apr-13 23:32

very carrefull whit this company. Please dont trust, take money from you bank account whit out you permision and if you want to cancel you insure SWINTON charge you a lot of money.PLEASE DONT TRUST

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sandro - 25-Apr-13 22:12

Swinton is a complete joke. i phoned today to cancel a motorcycle policy that doesnt even start for another 3 days. I thought i was being good by setting it up a week ago. They took the money out of my account straight away a week and a half before the policy was due to start. Now they tell me i have to pay £50......the whole year cover was only £78!!!
£50 for a policy that was not even active !!!
DISGUSTING
Swinton...Never again..you have been warned

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sandro - 25-Apr-13 22:09

If anyone out there has a policy with THAMES CITY INSURANCE or THE INSURANCE FACTORY you may be in for a shock, they are liars and cheats. Its a fradualent outfit & I curse the day I took out an insurance with them. I hope EVERYONE working for the company get CANCER! Tears..., tears..., sobs...., sobs, Ooooh God, this is too much pain to bear, I have been so so cheated!!!

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Mr_Very_Angry_Guy - 25-Mar-13 15:28

I had the exactly same problem with Thames city insurance, cancelled my policy as it was £166 a month and then they charged me £800 just to cancel it, and when i asked to reactivate it they said no. Now i'm stuck with £800 to pay off for nothing!

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Bea - 20-Nov-12 19:44

Very simply do not setup a POLICY of any kind unless your gonna use!

If in doubt, dont fuk about!

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Insured Driver! - 18-Oct-12 15:42

oh btw, my car is a 14 year old corsa, 1.4 litre 8 valve, not a fast thing, I am 22 and it's parked on the drive behind some very strong gates. Third party only for the year? £1400 online, rose to £1600 on the phone [no option to buy online] then with paying monthly the years amount was £1831. For a car worth £500. Whereas my motorbike, a 125cc that hits terrifying speeds of 70 mph, that costs me £120 a year to insure third party, or £200 full comprehensive. £120, or £1800. hmmmmm.

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mr angry pants - 18-Oct-12 07:59

if anyone out there has a policy with THAMES CITY INSURANCE or THE INSURANCE FACTORY you may be in for a shock, they are liars and cheats, they insured me for a year, I lost my job and had to cancel the policy, I was covered for 104 days, which would mean I had to pay about 28 percent of the years total premium, plus maybe £50 cancellation fee. But they sent me a letter demanding £374 as an ''outstanding balance'', then when I disputed and sent them a letter showing my calculations that I had already given them 44% of my yearly premium, it was in fact they who owed me! But they replied saying they would look into it, then I got a text, phone call and a letter from a debt collectors agency. demanding £449! For what? I told them to go back to the insurance factory and said there was no way I could pay it anyway [ no income now] and why was I being charged that amount anyway, the policy was cancelled over two weeks ago!

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mr angry pants - 18-Oct-12 07:55

i bought car insurance this morning, only to find out that the car was sold to someone else. will i be charged if i cancel NOW

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sam - 10-Jul-12 10:43

well well well....further to my post below ref the £50 cancellation fee on my not yet active bike insurance. I wrote two letters of complaint to the online department (somewhere down south) and the chief executive based up north. After a few days i recieved a phone call from the chief exec apologising and promised to repay the full amount (which they have!) as they did not wish to get the company a bad name. In my letters i had threatened to go to the financial ombudsman and also the motorcycling press.......so there you go it certainly pays to complain.

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Garry - 26-Apr-12 20:55

Swinton is a complete joke. i phoned today to cancel a motorcycle policy that doesnt even start for another 3 days. I thought i was being good by setting it up a week ago. They took the money out of my account straight away a week and a half before the policy was due to start. Now they tell me i have to pay £50......the whole year cover was only £78!!!
£50 for a policy that was not even active !!!
DISGUSTING
Swinton...Never again..you have been warned

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Garry - 4-Apr-12 21:51

Thanks for providing such a great information here.
Actually,I was looking forward to such a info.I really appreciate it.Hope to see such a informative stuff in future!
onlinecarguide.net

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Mark Smith - 4-Apr-12 11:00

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