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
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