Mr.Manchester

I cancelled my insurance policy after being with them for six months and nothing was said.
This morning i get a letter saying there taking me to court for £415?!?!?! Can they do this?

BOB.T

bugga

stu200

iTrader: (1)

In the first year of a policy, a (higher than average) proportion of the premium is swallowed by the admin costs of setting up the policy. When it's then cancelled in the first year, the insurers look to recoup some of that cost by charging for the cover on a sliding scale rather than pro-rata.

What this means is that they'll want (say) 15% of the annual premium per month, so that if you cancel after six months they'd get 90% of the premium. If you've been paying for the policy by direct debit, you will only have given them 50% of the premium, so they'll want the other 40% off you

It's one of the oldest scams that insurers love to bits, and is generally hidden away in the small print of your policy document. Of course, in these days of online direct insurers, the actual cost per policy wouldn't buy a packet of ****, but they keep the terms & conditions the same as it's a nice little earner for them [img]images/smilies/mad.gif[/img]