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Insurance Factory Cancellation Fee

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Hm9119 | 13:12 Tue 10th Feb 2015 | Insurance
11 Answers
Hi,

I would really like some advice

I've been with my car insurance company (the insurance factory) for 14 months. After my policy was renewed and my cooling off period was complete, I realised I could get a better an cheaper policy elsewhere. I rang the insurance factory to cancel my policy, now they want £205 pound as a cancellation fee. Can I dispute this as this figure does not seem fair to me. Any advice would be much appreciated
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You should have been given a list of charges when you got your policy. Mine, for instance, quotes £40 as a cancellation fee plus a pro-rata charge for the length of time you've held the policy.
You didn't say how much your policy cost in the first place.
So what happens if you sell or scrap your car before the policy is up?
As I understand it you have to pay the cancellation fee to the insurance company PLUS up to £75 plus 10% of refunded premium to the broker (The Insurance Factory)

http://www.insurancefactory.co.uk/terms-of-business/
ummmm, it would be the same, even if you were in an non-fault accident and the car was written off.
You buy insurance for 12 months and the price is based on that, even if you pay monthly.
I've never cancelled mid policy before. I did swap cars once and was charged £15 but the policy didn't increase. I've always paid annually.
Using the link from hc4361, if your policy cost you £1500 for the year and you're cancelling after 2 months, you are due a rebate of 5/6 of £1500 = £1250.
The cancellation costs would be (up to ) £75 + 10% of £1250 = £200.

Does this fit in with what you actually paid?
Don't forget the cancellation fee to the actual insurance company which of course isn't specified as it varies so much in addition to your calculations, bhg
I've never cancelled a policy hc4361, so I expected the charges I calculated being what would be charged. Reading the conditions again you are absolutely right. It really is very expensive to cancel a policy, especially if you go via a broker.
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What if I cancelled my direct debit???
They will write to you asking for payment in full, with added charges for bounced direct debits. If you don't pay they will take further action which could result in a County Court Judgement against you and lots of additional charges and fees.
An Insurance contract has been effected by you for 12 months....you have broken the contract......end of story.

If you had purchased eg a washing machine for say £400,and then found another retailer selling the same machine for £300 would you expect a rebate of £100 from the first retailer ?

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