Cancellation of car insurance

[jockessfi]

I recently changed my car, my previous insurer wanted quite a bit more than other quotes I'd had so I cancelled & asked over the phone how much it would cost. They couldn't give me an answer but are now wanting �63 from me, can they do these & do I have any rights to contest this?
Wasn't sure if I should post this here or in bus & fin can I post in both?
any answers gratefully received.
Thanks

[tali122]

i assume you're paying by installments-that could be only reason?

[Grunty]

If you are paying by instalments, you will probably be paying each month a twelfth of the annual premium. If you want to leave after, say, five months the company will have to calculate how much they want for five months insurance. That seems to be �63 more than you have paid. People often think they are paying for a month's insurance each month, but that is not the case.

[kempie]

There may also be an administration charge for the cancellation.

[dilligaf]

Read the small print on your policy. If it states you have to pay a cancellation / admin fee then hard luck.

If not, contest it.

[muppeteer]

when you cancel you have to pay the insurers time on risk charge + the cancellation fee (usually about �35), so if you've paid installments you have just not paid enough to cover this.
i work in a brokers & am surprised no one has gone down the same route as the recent bank charges thing as it costs no where near �35 to service cancellation on a policy.....wonder if its worth trying?
(wont say where i work as i will get shot!)

[tali122]

also remember that 7 months insurance use is considered as 12months in the crazy world of car insurance