I am guessing here but, the 14 day cooling off period is probably if you cancel it before the policy starts, not 3 days after it starts.

I support an insurance company in that a lot of the cost of a policy (excluding claims) is at inception, and therefore if you cancel, they should be able to recover reasonable expenses. Whether the insurance company and the broker have both incurred £25 of expense is questionable, and therefore the agreement to refund half of it is reasonable in my opinion.


Dave

Hi, I'm new to the board, so please don't flame me if I'm posting in the wrong place!

I took out car insurance through a broker (Adrian Flux) over the phone 3 days ago. The charged my credit card a £180 up front fee. Today I have decided that I don't need the insurance as the car has been sold. I believed that I would be refunded all of the money minues a pro-rata charge for the 3 days insurance.

I phoned up to cancel and they said that they would be levying a £25 administration fee, and so would the actual insurance company. So I would be getting £130 refunded to my credit card. The insurance documents that have been posted to me make no mention of an administration fee, although they do mention I have a 14 day cooling off period and that there will be a pro rata charge if cancelled.

Are they right in what they are doing? On their website there is no notification of any terms and conditions. I was not warned of cancellation fees on the fone. I believe this falls under the heading of a 'distance selling agreement'.

I have argued the point with the company and they have said they will drop the joint charge to £25, so £155 will be refunded to my card.

Are they right in charging me for administration?

Thanks

Dave