My insurer won't cover me at my new address. Can they cancel the policy and charge a huge fee?

I recently moved house. My insurance broker has told me that they will no longer insure my car from the new address. It is a small, very low crime area in a village. They want me to cancel the policy and pay a huge penalty charge. Can they do that?

Asked on 9 April 2020 by Tony Tombling

Answered by Tim Kelly
The cancellation fee should always be a reasonable amount, i.e. around £40-50 maximum. If they try to charge more, raise a complaint with them and then escalate to the Financial Ombudsman. Identify the current insurer that your broker has insured you through, the contact that insurer directly if you can. If not, contact another broker and see if they use that underwriter. Request for a quote on the new postcode with the same insurer. If they provide a quote with the same underwriter, you can go back to the old broker and advise them they are incorrect as the current insurer will insure you. The policy does not need to be cancelled and only a small administration fee should be charged.
Tags: insurance
Similar questions
Do you have a list of good car insurers? My premium has just been increased by 20% - which I think is rather unreasonable. No doubt you know of other insurance companies who are not quite so expensive.
My insurance on one car is due to renew shortly. It's a three-year fixed price deal. In January, I made a claim on my other car (mouse damage to engine wiring) with the same insurance company. I'm the...
A family bought a property nearby and they obviously buy and sell cars from it. I've seen cars from the lot with adverts in the windows and they park them in the high street and drop them back later. They've...
 

Ask Honest John

Value my car