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.
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
Comments from visitors
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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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
£50 for a policy that was not even active !!!
DISGUSTING
Swinton...Never again..you have been warned
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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
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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Swinton sucks! First of all, I drive a banger, insured for £800. Fully Comp insurance rose last year (I need fully comp because of my job) by £120, to £450 with 9 yrs no claims. I've just bought another old car, but two years younger, same specs, insured for £700, and been quoted an extra £169 on my insurance??? Queried that, and told it was the cheapest they could find. Rang RAC who quoted me £413.10 - same level of cover, etc.
So, rang my other insurer to ask about cancellation fees so I could swap over, and they want £169??? What the Hell? I know the economy's bad, and prices are rising, but this is holding customers to ransom.
So, rang my other insurer to ask about cancellation fees so I could swap over, and they want £169??? What the Hell? I know the economy's bad, and prices are rising, but this is holding customers to ransom.
+2
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swinton again i renewed my car insurance over the phone when swinton phoned me to say it was due for renewal they said they had diligently searched the market to get me the best deal , £700 as i had made 3 claims within 3 years ( i have 3 years no clames) after 10/ 15 minuets they phoned me back to say i would have to pay another £50 extra because i had moved and now living in a higher risk erea thetford to attleborough , sheltered housing , all mostly old people many with no cars and crime rate way down the scale than thetford is,so how can this be , yes somthing untastfully wrong , i thus cancelled the renewal within 2 hours got a new quote for £557. 99 went into swintons office and gave the manager aletter saying no money was to be taken from my account he was very rude and arrogant , also my bank phoned them but they went ahead and took £708. 27 from my account deposting back £574. 27, keeping the differance i faxed a letter of complaint to the financial ombudsman and my m.p ( i advice everyone to do this) swinton now tells me, as a good will gesture they will recompensate me the full amount back i also asked for £30 compensation for all the hassle and inconvenience they agreed to settle for £20
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WHAT YOU HAVE TO DO is clarify just what are the charges for and can you have it on a headed paper please. NOT the brokers headed paper but the ACTUAL insurer's - with a reason justifying the charge. Put this to the broker in email format, recorded delivery and give them a couple of weeks to respond. It will all go away after that I imagine. Good luck.,
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drivinguscrazy - 2-Nov-11 10:31
My son sold his little old banger as he couldn't afford to run it any more, and only just started working. Rather than get into financial difficulty. He received enough money to pay off his debts and a little bid of living money to get him by. He has phone car insurance company today and they want £670 to cancel the policy. He is devistated. Any idea what he can do? This amount of money is criminal the policy was Only (I say this tongue in cheek) £1350 for third part only.
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With regard to Swinton's cancellation fees, you have to bear in mind that Swinton are just an insurance broker, not the insurance company. When they quote an insurance at you, and you accept, they arrange it with this other company and then charge their fee on the top for arranging it all. So if you cancel mid-term, the real insurance company might actually be the one imposing the cancellation fee. But still, Swinton might stick their admin fee on the top, both to discourage you from cancelling and to pay for their admin work. And make even more money on the top, besides!
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my dad had a motorbike and was insured with swinton but about march 2011 his bike was stolen off the garden even tho it was chained up. he rang his insurane to make a claim but was told he would only be entitled to £200 but had to pay an excess off £250 so he decided not to claim as he would be out of pocket. (like its not bad enough so little git stole it in the first place). then yesterday he gets a call from a debt company on behalf of swinton saying he owes them £113 for the rest of the policy and cancellation fee even tho the company cancelled it themselfs and not on our part. We rang swinton up to ask what the crack was but the guy was so rude and unhelpful and hung up on us lol. surely they cant do this to him. he was the victim but he has to pay???? how is that right? he cant afford to replace the motorbike so why should he have to pay for what he hasnt got.
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hi I too have had dealings with swinton insurance in swinton
house insurance I cancelled and now they are trying to charge me more than the policy cost I asked my bank to look into cancellation fees they said it should be 35 ponnds not 177 pounds
they have sent it to a debt collecting company who keep texting and threatening to send someone round when I phoned to complain I got laughed at beware of this insurance company
house insurance I cancelled and now they are trying to charge me more than the policy cost I asked my bank to look into cancellation fees they said it should be 35 ponnds not 177 pounds
they have sent it to a debt collecting company who keep texting and threatening to send someone round when I phoned to complain I got laughed at beware of this insurance company
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HI changed my motor bike for a new one, same size, value etc, told my insurer they charged me £110 for the privledge and when I said I'd cancel they told me I'd have to pay them £194 on a policy that cost £240 3 months ago - are they allowed to do this
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DOWN IN THE MOUTH - 8-Apr-11 17:17
my brother told his insurence the day before it was dew for renewel .that he was changeing his car .would it be ok to wait till monday as it was friday before payment was due. the renewel was £131 amonth . he was told by one person that it was fine to wait as he had been with them 3 years . come monday nobody new what he was going on about . then he was told his insurence had lapsed .by 24hour. he needed £400 depo and £240 amonth . I wouldint mind but the new car was a cheaper car . plus the first policy they sent for renewel was not evan him . so make sure u check . cause 24 hours costs trust me . ps if I cancelled I would tell my bank to stop direct . and would not pay a penny . see them in court .
+6
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I have hjust had something very similar with Saga Motor insurance. Sold the car, and 2 months left on the insurance, so I cancelled. I had paid for the full year, but I then received a bill for the £22 I owed THEM for the privilege of cancelling. If I had done nothing and just let the insurance run out I would not have been charged.
This is basically just a scam, and I will never do any bussiness with Saga again, so it has to be counter-productive.
This is basically just a scam, and I will never do any bussiness with Saga again, so it has to be counter-productive.
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we have a similar situation my son has lost his job and therefore cannot afford to run his car at all because of the high insurance he pays every month £238. he is 17> I rang to canel the policy to be told there would be a cancelation fee of £75 I thought thats high but got to pay as done now. That wasn't the end we were also told he had to pay £1052 70% of the remaning monthly payments until Sept 2011. Poor lad has sold his car for £300 and still needs to find over £700 to pay when he doesn't even have a car anymore> They said its in the small print as he was paying monthly. DISGUSTING RIP OFF. Im going to look into this further as not sure than can do this its criminal
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fed up mother - 18-Feb-11 18:36
I also have had very recent experience when cancelling my holiday home insurance. I took out a policy in May 2010 and paid £170.00 upfront. Early October I cancelled my policy and as usual I put this in writing. In brief I communucated several times with the company who did not commnicate in return and recently discovered that my refund was for a total of £18.72! If I had chosen to pay by direct debit (14.16 per month) I would have saved myself some money. While I fully expected to have to pay some sort of admin fee this beggars belief! My advice is to pay insurance fees either by credit card (I know this may mean a small charge) but at least if there is a dispute they will take it up on your behalf or pay in monthly installements. The fact that I have had a very shockingly small refund and did not need to make a claim in the insurance period very disappointing. I would have thought that in this climate insurance companies could not act in tis way. Yes I have complained to the Broker who thinks my complaint is unjust.
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Reference SWINTON INSURANCE charging £50 CANCELLATION FEE for a quote taken over the telephone and then cancelled within the cooling off period. A telephone conversation is not a legally binding contract, you are within your rights to change your mind, do not pay the £50, telephone their head office and explain that if they do not withdraw the charge you will go to a solicitor.
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I took out motor insurance with Quote Mart on a second car not knowing I couldnt use my no claims against 2 cars.Rang to cancel it after just a month as payments were too high,after they have taken £50 deposit £45 payment another £156 now they say I have to pay £75 cancellation fee and another £628...can this be right for only 1 month?
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I recently rang Direct Line to cancel my car insurance as my car is declared off the road for a year. I asked them to tell me how much it would cost to cancel and they said £26, so on that basis I cancelled it. I then received a letter saying I owe them £113. I had already cancelled my monthly direct debit and I wrote to them asking for an explanation, but got no reply. The next thing I received was a demand from Moorcroft Debt Recovery, plus phonecalls from them insisting on full payment or I would go to court. Direct Line won't communicate with me now that Moorcroft are dealing with it. What can I do?
+8
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This has also happened to me. I had to cancel my car insurance due to broken down car, which I had to sell for a pitence.. and was charged a cancellation fee for the insurance and breakdown cover. However I did question it and tell them I would contact the ombudsman and they reduced the monthly payment by £10. My friends have also experienced this problem, all with different insurers.
Always call the Financial ombudsman, chances are your payments will be reduced and every complaint is logged and goes towards changing the rules in our favour. Those greedy insurance companies have had it too good for too long. Stand up for your rights folks.
Also this happened to my neighbour with his scooter. He did refuse to pay and cancelled his direct debits. They did nothing and have never contacted him for the money.
Always call the Financial ombudsman, chances are your payments will be reduced and every complaint is logged and goes towards changing the rules in our favour. Those greedy insurance companies have had it too good for too long. Stand up for your rights folks.
Also this happened to my neighbour with his scooter. He did refuse to pay and cancelled his direct debits. They did nothing and have never contacted him for the money.
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Well, it seems that Swinton comes up as a regular on the preceding comments. I too have been asked to pay an extra £33 (£50 less the refund) to cancel my policy nearly 10 months in. I rang to ask them to quote for a new car and they were way above the best on-line quote with Sheila's Wheels. I explained my car was being scrapped under the government scheme and again they insisted that I had no choice but to cancel "because sometimes they end up back on the road" - not that I believe this. I still cannot comprehend how they can justify the admin charge. I know it's there in the small print but the banks finally got their comeuppance on unfair fees! Time to rebel???? Is there anyone out there who has simply refused to pay? What did they do? It will cost them more to take this to a small claims court. Will let you know!
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