From: Robin T Cox 
Subject: Re: Car insurance cancellation charge
Newsgroups: uk.finance
Date: Fri, 20 Jul 2007 17:58:11 GMT
Bytes: 2348

On Fri, 20 Jul 2007 12:12:53 +0000, dave wrote:

> Been with Saga car insurance for a few years but found a much cheaper
> company. Trouble is I'd let the direct debit for the "new" year just
> start. ie They had taken one payment for the fourthcoming year.
> 
> Anyway, I wrote to them to cancel the insurance anyway and recieved a
> letter saying I owe them ~£34 (no details as to why). A further letter
> explained that the sum was for two things:
> 1. A cancellation charge of £25.
> 2. The legal part of the insurance is non-refundable ~£9
> 
> I can't seem to find it anywhere that mentions the cancellation charge
> (not saying it's not there - only I can't find it), but I wondered if
> this charge is a standard thing with (car/any) insurance? I've never
> had such a charge before over the years with other companies.
> 
> I also wonder at what point in the lifetime of the policy I could
> cancel without incurring this cancellation charge? If the answer is
> "never", then shouldn't this be more clearly explained and it is
> effectively an additional charge onthe advertised insurance rate!
> 
> Actually even *with* the cancellation charge my new insurance is MUCH
> cheaper.

No doubt the charge itself is unlawful, and you are well advised to
reclaim it.

Here's how:

http://www.moneysavingexpert.com/reclaim/bank-charges