Cancellation Charge?

[swinman]

My House (Buildings & Contents) Insurance is due for renewal soon. I plan to shop around, but notice that my current provider says there is a £50 charge if I choose not to renew with them? I assume this is legal. How do they justify that?

[factor-fiction]

Are you sure you've read it correctly. Maybe they mean it will renew automatically unless you tell them before the renewal date that you don't want it, and if you leave the cancellation/non-renewal until after the renewal date there will be an admin charge

[excelsior-1]

i do not see how they can

that is rediculous

[wiltsman]

Just give them a ring to clarify things. I think you'll find there may be a charge if you cancel early perhaps, but not if you decide to go elsewhere after you've been with them for the full year.

Also, it's worth ringing them to request that they don't automatically renew your insurance. Quite a few insurance companies are doing this now, unless you specifically state you don't want this to happen.

[TandT]

I think it is probably like factor-fiction just explained, My insurance was due a few weeks ago, I had a fourteen day cancel limited in which I did not have to pay, but if I did not cancel within this time I would have had to pay £25.00.I hope this is the same for you and you dont have to pay anything.

[swinman]

Thanks everyone. I'll double check and report back - watch this space!!