You will be charged what is known as short term rates for cancelling your policy early (outside of the 14 day cooling off period - in this period you will only be charged for the amount of days you have actually been on cover + an admin fee for all the paperwork and documentation etc, circa £20)). For short term rates I would expect them to charge at least 3 months cover if you cancel in the first month + a cancellation fee ( this can be quite high (circa £50) but is all in the terms and conditions you signed up to.

Hopes this helps you understand the charges even if it doesn't make you happy about them.

LisaH:

Hi Viciss

Thanks for the advice. He is going to give them a try tomorrow. I have checked my paperwork and it says you have 14 days from when the new certificate is issued to cancel and if you do you will be charged a fee. We got the certificate on the 14th May so I woudl assume we are still within the 14 days. Anyway, I will keep you posted..

Ah,

You will still be charged a fee if you are voluntarily ending the contract early where the circumstances are out of the control of the insurer. If everything is okay with the contract, but your husband wants to cancel simply because he's getting a lease car, then the fee will apply. It's also 14 days from when the documents were sent and not received.

Sorry to be the bearer of bad news (again!!) lol

Hi Viciss

Thanks for the advice. He is going to give them a try tomorrow. I have checked my paperwork and it says you have 14 days from when the new certificate is issued to cancel and if you do you will be charged a fee. We got the certificate on the 14th May so I woudl assume we are still within the 14 days. Anyway, I will keep you posted..

LisaH:

My husband has been with Budget for a year. He has just sold his car and decided to have a lease cr instead so needs to cancel his contract. He just rang Budget and they told him he needs to pay £220 to cancel a £600 (for the year) contract a she is 14 days into his next year. I thought once you had been with an insurer a year you went onto a rolling contract and you could cancel at any time. Yes, we expect to maybe something but a third of the yearly fee seems extortionate! Does this sound right? Is there anything we can do about this?

Thanks in advance

Lisa

Hi Lisa,

This sounds a bit excessive to me! I make this figure circa £58-£90 depending on the fees that they charge and the value of them. You are able to cancel at any time, but this has nothing to do with a rolling contract. If the policy period is 12 months, then this is not a rolling contract either as a new Certificate will be produced and an updated Schedule.

I think you should call them and speak with a supervisor about the issue. Ask them for a full breakdown of costs that you are being charged!

.... then let us know on the boards :)

My husband has been with Budget for a year. He has just sold his car and decided to have a lease cr instead so needs to cancel his contract. He just rang Budget and they told him he needs to pay £220 to cancel a £600 (for the year) contract a she is 14 days into his next year. I thought once you had been with an insurer a year you went onto a rolling contract and you could cancel at any time. Yes, we expect to maybe something but a third of the yearly fee seems extortionate! Does this sound right? Is there anything we can do about this?

Thanks in advance

Lisa