Shock charge from AA

[gyl519j]

Sadly i have sold my much loved Minor 1000 and have just telephoned AA Insurance to cancel my policy. They have told me I must pay £50 + to cancel my policy! Is this correct?

[lambrettalad]

What does it say in the weaselling terms and conditions ?

[gyl519j]

I had some time to look through the T&Cs while I was passed to Credit Control from Customer Service (took a long time fior them to answer) but couldn't find anything so I asked the nice lady in credit control for an explanation and she said it wasn't her department so I could be transferred back to customer service. At which point I gave up. I have not paid what they ask. Just wonder if this is normal practice?

[Dave@FJ]

Sadly i have sold my much loved Minor 1000 and have just telephoned AA Insurance to cancel my policy. They have told me I must pay £50 + to cancel my policy! Is this correct?

How long was remaining on the policy? Is this £50 you have to actually pay or £50 they are taking as an admin fee before refunding the difference? If it's £50 you have to pay just leave alone and let the policy lapse at renewal.

[bmcecosse]

£50 to cancel?? Aye right.... Most Classic Car policies don't cost much more than £50 in the first place !

[LouiseM]

There's a list of car insurance cancellation fees here:
http://forums.moneysavingexpert.com/sho ... p?t=893319

It's around 18 months out of date so figures might have increased but it gives an idea of who is charging what. Always worth reading the small print before you take out a policy!

[Dave@FJ]

That's got to be 5 years out of date Lou!

Posted in 2008 and Footman James still showing as underwritten by QBE!

Interestingly a friend of mine has just sold his Land Rover Series 2 insured by NFU as we wouldn't cover the modifications. He rang to cancel the policy with 3 months left to go and had to pay an additonal £60!

[LouiseM]

That's got to be 5 years out of date Lou!

Well it says it was last edited in August 2011 and seems to be right about the £50 AA cancellation fee. As stated though, always best to read the small print in your policy!

[jagnut66]

I have just read this, I had to do a double take..................
They charge you for insurance for the year, you pay, fair enough.....................
Then, for whatever reason, you need to cancel your policy early and they want you to pay for the privilege!!

Outrageous!

I was aware that after a certain period of time you might not get much of a refund but to charge you extra!!

I think they're taking the p**s! No wonder insurance companies get a bad rep!!

I have to say I'd tell them where to get off too!

Regards,
Mike.

[AntB]

It's not surprising. You have entered into a contract with them that they have an expected level of income from, if you wish to cancel that agreement they are within their rights to cover themselves, if only to cover admin costs.

[mike.perry]

If you are paying by monthly instalments then I can understand a cancellation fee for the outstanding debt but if you have fully paid up for the year then it is outrageous. Are you using their breakdown service? You might like to tell them where they can stick that as well.
If you decide not to pay and just let the insurance run then what is your legal position as you no longer own the car on the insurance policy

[Dave@FJ]

If you decide not to pay and just let the insurance run then what is your legal position as you no longer own the car on the insurance policy

Unless it's a ship then it's not illegal

Could potentially cause a few headaches if there was a claim with insurers possibly trying to split liability. Not really sure how that would turn out as the OP no longer has an insurable interest.

[Rutland Moggie]

I cancelled my policy covering my Rover 3 Litre P5 with my brokers; they refunded a very fair sum, i.e. they did not deduct much at all for early cancellation. I would add, and this may have some relevance, I had also cover with them at the same time for my 1000.
The company? RH Specialist Insurance Division, Brentwood, Essex. I have had various classic cars insured with them over a period of some six or seven years, and cannot recmmend them highly enough.

Rutland Moggie

[gyl519j]

Thank You for all the responses. Just to answer some of the points raised ... the insurance cover for my Minor is due for renewal in September 2013. i pay monthly by Direct Debit. When i phoned the AA and told them I no longer needed insurance cover as I have sold the car, I was told that the policy would be cancelled but I would have to pay £50+ to cover the under writer fees. I could find nothing in the copious pages of Terms and Conditions, However, I expect there is some wording somewhere which I haven't read. I will contact the AA and ask them why ... but I am sure I will have to pay.

[AntB]

the other thing about this route is that if you look at the amount of time you have spent on it and how long it takes you to earn £50 at work it pretty quickly becomes apparent that chasing round endlessly for a get out is a good way to waste time that is a lot more valuable than the £50.

cf. parking tickets that were hugely unfairly inflicted when you just popped in the bank/ shop/ whatever for 5 minutes. pay the £60 before it doubles to £120 and chalk it up to experience, it beats wasting 3 days of your life fighting a losing/ futile battle.

just my two cents*

*non- refundable btw

[mike.perry]

It is the principle and principles are worth fighting for

[lambrettalad]

just read this from Martin Lewis news letter

beware paying monthly - it could cost 30% more. There's actually no such thing as paying monthly. Insurers just loan you the upfront cost at up to 30% APR (see Car Insurers' APRs list). Check the interest. If it's costly, try to pay upfront; if you can't, consider paying on a 0% Credit Card (ensure you repay within the year).

[LouiseM]

Here's a link to the current AA car policy document:

http://www.theaa.com/insurance/pdf/car- ... r-2012.pdf

Details of cancellation fees are shown at the bottom of page 14. In respect of payments made by direct debit:

Any return of premium due will be based on a pro rata calculation for the period of cover, with a minimum charge of
£15. If You cancel Your policy after the 14-day period has elapsed, AAIS will charge a cancellation fee of up to £50*.

[bmcecosse]

Crazy way to insure a Classic Car - surely?? Rh and others only charge £70/80 for the year INCLUDING breakdown and recovery.... And for me - they are perfectly happy to add on my TR7 for the few summer months I have it on the road - for ~ £10/month - and no fee to pay when I take off at the end of the summer. Can't recommend them highly enough!!