What happens if I cancel my insurance ?

[Clarkey]

I renewed my policy in July with Sky. I pay my insurance annually. Which was £1015 - I think.

 

Now, if I cancel my insurance policy - for example in January. I should get money back between the date I cancelled & the next renewal date ?

 

The reason for the question is - I rang Sky up today. Told them that I will be cancelling at some point due to selling my car. I said to them:

 

"If I sold it today & cancelled today - what return figure would I get between for the unused insurance cover of NOW till July 2007."

 

They came back with £200. Saying that they have to take their comission off etc.

 

I told them that can't right - 6 months unpaid insurance would be £500.

 

Thoughts on this ??

 

I'm awaiting another phone call back from them - as the person I spoke to is on training and they said they'd call me back. But I have a feeling - that it is I that will be doing all the chasing.

 

Sky - like any other typical insurance company. Happy to take your money .. but when it concerns giving it back - they dig they're heels in.

[Havard]

Always thought insurance payments were divided equally over 12 months. I understand if the month has started you would loose it but I would expect a reasonable amount back.

 

H.

[Muffleman]

Nope, they will stiff you for all they can - the broker will keep 100% of their commission plus probably charge you a cancellation fee.

 

Just cancelled a policy with Sky too and awaiting the refund advice. If it sucks you can guarantee I wont go near Sky again, and seeing as I still have the Trial Supra, MR2 turbo and am looking at another jap import, they will lose business.

[Ian W]

i take is Sky insure non-jap cars as well?

[Guest mk47]

if you pay them up front they should refund you back pro-rata. atleast thats how it was when i worked for an insurance company here, just argue the case as they always try to keep some comission. usually if you pay by direct debit they charge you to cancel, but if you pay upfront they shouldnt.

 

keep arguing the case and get onto a manager - thats how it always used to be and they should offer you a true pro rata refund where they refund you for each day left on the policy

[KaoriFan]

wow, that is an eye-opener. i always thought you got back every complete unused month, just like if you cancel a tax disc.

 

worrying if they only give you back so small an amount.

[Clarkey]

Nope, they will stiff you for all they can - the broker will keep 100% of their commission plus probably charge you a cancellation fee.

 

... I kinda hoping that wasn't the case! They said the amount that would come back to me would be £270 - but the £70 is Sky's commission.

 

What I want to know is: If I cancelled now - that leaves 6 months left of insurance.

 

That's £500. (For example) - does that mean that the broker's commision will take a bite out of that £500 & then Sky will take another bite ?

 

That sucks!

[Clarkey]

Nope, they will stiff you for all they can - the broker will keep 100% of their commission plus probably charge you a cancellation fee.

 

... I kinda hoping that wasn't the case! They said the amount that would come back to me would be £270 - but the £70 is Sky's commission.

 

What I want to know is: If I cancelled now - that leaves 6 months left of insurance.

 

That's £500. (For example) - does that mean that the broker's commision will take a bite out of that £500 & then Sky will take another bite ?

 

That sucks!

[Ian C]

They have a repayment table which should be in the docco you got with the insurance. You'll find you lose out. It works a bit like this:

 

You paid £1200 up front (see what I did there with the maths )

You cancel after 1 month, you'll get back about £1050

2 months, £900

3 months, £760

All the way to 11 and 12 months where you'll get nothing back at all.

 

So I'm afraid that sounds about right Clarkey. However, do check your cancellation repayment table as you may find they haven't quite worked it out right.

 

-Ian

[Havard]

Clarkey - I heard you the first time!!

 

H.

[grahamc]

That is actually quite pathetic! Now I am seriously doubting whether I should use Sky.

 

Please guys, let us know how it goes...

[Ian W]

i currently pay my insurance monthly with sky so if cancelled i should just be able to cancel my DD surely and not lose out other than the remainder of any particular month that i cancel it?

 

my main problem is keeping my NCB as i'm not at maximum yet so would want to keep the policy going until it's full year has elapsed.

 

i'm assuming Sky will just be able to transfer the policy onto whatever replacement car i get and adjust the premium accordingly?

 

ps

 

sorry for the slight

[Todd]

i take is Sky insure non-jap cars as well?

 

 

Sure do.

 

As for folk getting stiffed, check any other insurer, same where ever you go.

 

Checked my sky policy and reads like this.

 

Period not exceeding (months) = Proportion returned

 

1 = 75%

2 = 70%

3 = 50%

4 = 40%

6 = 30%

8 = 10%

over 8 months = NIL

 

A min premium of £40 will also apply.

[Clarkey]

So I'm afraid that sounds about right Clarkey. However, do check your cancellation repayment table as you may find they haven't quite worked it out right.

 

-Ian

 

Aww ..

 

Thanks Ian. Will dig out my insurance stuff when I get home. Think when I'm done with the insurance - I'll use to make paper aeroplanes with.

 

And Sky have rang me back - and you're right. Because if I was to cancel in December - it has gone over the broker's threshold (any cancellations 6 months or later) - which means I would get back next to nothing.

 

I'd get back more money - if I was to buy a 1.2 Corsa or something and insure that.

[CJ]

The problem we as punters have is that every insurance company will be the same. So, taking business away from Sky to give to another company will only see us jumping out of the frying pan and into the fire.

[supRo]

Unfortuneately it varies with different insurers obviously the customer being worst off most of the time.

 

You may find it works out better if you transfer the insurance to your replacement car if you are getting one

[Muffleman]

Right, received my letter from Sky today, and as far as I'm concerned Sky can go and do one - NOT happy.

 

Figures wont be to the penny accurate as I am at work and the paperwork is at home, but basically I took out a policy costing about £450 per annum. They said that I could split it into quarters over the first four months of the policy. I paid three and had one due for £117.57, but I sold the car after three months and so cancelled the policy.

 

So I paid three instalments of £117 for three months. Got a letter today saying I owed the last instalment of £117.57 but the refund on my policy would be £125 for early cancellation, so I'm owed £7.43 - however, it's company policy not to send out refunds less than £20.

 

The second word is 'OFF'

 

I paid £350 odd quid for three months insurance on a policy costing about £450 for a year.

 

Like I say, the numbers aren't spot on, but you get the gist - I am PISSED off. This is the worst cancellation I have ever had, all insurance companies are NOT the same.

 

My first Sky experience has been shite, I wont be bothering again.

[Supragal]

Oh wow, ok I've done that 'pay over the first few months' thing.

 

Maybe it's not worth selling the car then!!!!

[Todd]

Right, received my letter from Sky today, and as far as I'm concerned Sky can go and do one - NOT happy.

 

Figures wont be to the penny accurate as I am at work and the paperwork is at home, but basically I took out a policy costing about £450 per annum. They said that I could split it into quarters over the first four months of the policy. I paid three and had one due for £117.57, but I sold the car after three months and so cancelled the policy.

 

So I paid three instalments of £117 for three months. Got a letter today saying I owed the last instalment of £117.57 but the refund on my policy would be £125 for early cancellation, so I'm owed £7.43 - however, it's company policy not to send out refunds less than £20.

 

The second word is 'OFF'

 

I paid £350 odd quid for three months insurance on a policy costing about £450 for a year.

 

Like I say, the numbers aren't spot on, but you get the gist - I am PISSED off. This is the worst cancellation I have ever had, all insurance companies are NOT the same.

 

My first Sky experience has been shite, I wont be bothering again.

 

 

You should be entitled to 40% back, is the policy booklet with ensign?

[Soop Dogg]

I know how infuriating this is for you guys, BUT - read your tems and conditions as soon as you take out the polciy. (or preferrably before) This is a hard lesson to learn and I've done it myself years ago. Nowadays I read all the small print and make sure I'm happy with it first.

 

It's all in there for you to see. You can't blame the company if they informed you and you didn't bother to read it.

 

Virtually all insurance companies have this sliding scale of rebate amounts which is different depending on how long you have been on risk. And this is not necessarily down to Sky as they are only the broker, aren't they? Often these amounts are determined by the insurer who underwrites your policy.

 

One way to get a pro-rata rebate from the insurer is to say you're buying a car they probably won't cover. e.g. some insurance companies won't insure a GTR34 Skyline or a Corvette convertible etc. As THEY are the party who want out of the agreement, they have to effect the cancellation, not you. As the sliding scale thingy only applies to the situation where the Policy-Holder cancels their policy, in this type of case they normally pay you out pro-rata for any outstanding amount still 'unused' on your policy.

 

As already said, you could say you want to insure a Corsa from now until renewal. They will then recalculate your premium on a pro-rata basis returning any excess payment to you. Then once you have received this amount, cancel the insurance on the Corsa which of course will be a smaller amount of premium to lose.

[Ian C]

Yep, there are other ways around it as Mr Dogg describes.

 

Also you could suffer a cracked windscreen that costs them a grand and you £50, then cancel the day after

 

Oh and Supra-Man, if you pay monthly you'll find you are already paying more than someone who'd paid in one lump sum, so they already have their cash

 

-Ian

[Ian W]

Oh and Supra-Man, if you pay monthly you'll find you are already paying more than someone who'd paid in one lump sum, so they already have their cash

 

i know this

 

although i'm paying more to do it monthly i'm not going to lose out on hundreds am i as i'm only paying a little more each month? although this is not the reason for me paying monthly, the reason i pay monthly is that i can't afford to pay out all in one lump sum.

[Clarkey]

Hullo guys! As I've now sold the car - back in early December.

 

Anyone know of the legality of

 

a) Insuring a car that doesn't belong to you. (Like a relative)

b) Insuring a car that is already insured by someone else (Like a relative)

[Sheefa]

Clarkey, I work in insurance for Zurich mate, more commercial and not personal lines though.

 

In answers to your questions:

 

A) Don't think this is a problem at all, you don't have to be the owner of the vehicle, I had my own policy with an insurer on a fleet basis for my dads car, he owns it not me. Best to check though.

 

B) Not sure about this. Again I don't see it being a problem, but I know insurers don't like dual cover with another third party etc. Can't you just add your name to the relatives policy?

 

I would call in insurer or contact the FSA for more details mate.

 

Greg

[Clarkey]

Cheers Greg. Yeah, I could add my name to the relatives policy that's not a problem. But was thinking of my policy for the Supra (which is now sold).

 

Was thinking of what Mr Dogg has said.