Cancellation of insurance.

Honest John Back Room » Motoring discussion
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Sat 7 Jun 2003 22:58
Cancellation of insurance. - mal
A friend of mine is selling his car and giving up driving for good personal reasons after only 2 months insurance with AXA but can not find out until monday how much he can expect to be refunded, hopefully this would be on a pro-rata basis less admin. costs.
Does anybody know what percentage of his premium he can expect to be refunded, he was insured fully comp at a cost of £500.
Regards,Mal.
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Sat 7 Jun 2003 23:18
Cancellation of insurance. - Wales Forester
I took out a policy with AXA in January this year, personal circumstances meant that I had to cancel the policy after just three weeks.
I was pleasantly surprised to find that they work the refund out by dividing your annual premium by 365 days and then multiplying it by the actual number of days cover you have had.

A very fair way of doing it and they're competetive to boot!
Hope this helps.

PP
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Sat 7 Jun 2003 23:32
Cancellation of insurance. - mal
Thanks Peter, guess he also will be pleasantly surprised when I ring him in the morning.
Regards, Mal.
P.s we have all our insurance with AXA.
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Tue 10 Jun 2003 23:23
Cancellation of insurance. - scruffythedog118
A bit late info 4 u maybe, but just found this on rear of my insurance papers.

"provided there have been NO CLAIMS in the current period of insurance your insurance company will refund part of your premium, refer to the scale below"





Period of Ins. not exceeding % refund
1 month 75%
2 months 65%
3 months 50%
4 months 40%
6 months 25%
8 months 10%
+8 months NIL

Also to be included is a minimum 25% cancellation charge once cover has been incepted.


This propably varies company to company, but hope it helps.
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Wed 11 Jun 2003 12:45
Cancellation of insurance. - tunacat
I cancelled after about 10 weeks on a policy supplied by 'an intermediary' which I'd opted to pay by instalments. I thought I'd probably paid quite sufficient because I'd paid 3 out of the 10 instalments but used less than 3/12 of a year's cover.
The intermediary presented me with a bill for extra money, with no explanation at all.
After a few huffy phone calls and letters back and forth I eventually got sufficient bits of information to piece the story together:
Pretty much pro-rata money was recovered from the actual Lloyds Underwriters, and paid back to the (independent) finance company who were providing the instalment facility. Seems they received amounts in line with 10 weeks of insurance.
But the intermediary, who was neither providing the actual insurance nor the instalment scheme, retained the full 12 months worth of commission.
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Fri 13 Jun 2003 00:05
Cancellation of insurance. - mal
Just to confirm that he collected a full refund down to the penny worked out by dividing the premium by 365 and multiplying it by the number of days left on his policy.
That to me is a good example of not being ripped off!.
Pleased I have all my insurance with them.
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