http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Thanks for the response, can I just ask what is FOS I know of the the FSA is this the same? Apologies for my ignorance! The company in question for the record is DIAL DIRECT, although not so direct as they are a broker and wanted £900 for a policy to be underwrited by a company who I can deal direct with and get it for £500. They spouted something about my insurance being underwritten by a company specialising in newish vehicles so they wouldn't cover an older car. I was in a similar position 2 years ago when I changed vehicles although I have to say the company I was insured with then were very accomodating and changed over the car details and refunded me £25, they were 1st Central.

I took the policy out on direct debit I normally pay the full year but was toying with changing cars. It was £363.26 to do this. I paid an initial payment of £29.46 followed by 2 payments of £33.06, they then charged me £38 cancellation plus £130.29 totalling £263.87 for 3 months insurance. Maybe I am overeacting but I do feel this is extortionate others may disagree. Will take your advice and complain and also visit the review page.

Thanks

Yes this happens all the time and has done for many years now.

The FOS made a ruling a few years back, that Insurers are able to charge a time on risk, plus a maximum of £50 as a cancellation fee. So if you believe the cancellation amounts are wrong, then make a complaint. Insurers have up to 8 weeks to resolve, after which you can make the complaint to the FOS. As the FOS charge the Insurers a £500 case fee and the consumer nothing, many Insurers will choose to make an economic decision to waive the cancellation fee as a gesture of goodwill and provide a breakdown to justify the time on risk amount.

You can name and shame the company concerned, as that is not against the forum rules. You just can't slag them off using swear words or name company staff that you have dealt with.

There is also a review page on the Moneysupermarket Car Insurance page you can use.

Have recently had the misfortune of being completely stung when cancelling a motor insurance policy. Ended up paying 60% of the total policy cost for cancelling within the first 3 months. Could not even transfer the policy to my new vehicle as they were asking an extortionate amount. I am very annoyed about this and would urge everyone to read small print as I will be doing in the future. Given the current economic climate I would suggest that insurance companies start to put more into their customer care as I felt this company were less than helpful kinda like we can charge what we like. Would love to name and shame them but unsure if able to on this forum, did insure via this website. Needless to say will not be insuring through them again nor would I recommend them to anyone and they weren't even my cheapest quote. Anyway was wondering has anyone had similar experiences, who do you complain to and is there any recourse for the consumer when this happens??