Elephant.co.uk Cancellation Charge

Charlie_Bubble · 02-02-2009, 17:14

Sold my car today and decided to call the insurance company up and cancel the policy. To my amazement, they've got a Â£47.50 administration charge for cancelling a policy! Lord alone knows what they do to charge around 25% of a yearly insurance premium to cancel it.

Anyway, on putting the phone down I checked my documents and yes there is a charge on the back of my certificate, of Â£45. Mulling over this, I decided, sod it, I'm going to call and get the extra Â£2.50 back!

So, I called back and actually got someone in the UK this time (Last time it was an Indian call centre.). Apparently the charge went up during the year. Ok, if that was the case, you should have notified me in writing. My certificate says Â£45, so that's the amount I should pay. She had to actually go away and get a supervisor to ok this, but I got my Â£2.50 back. Robbing bar stewards.

They've asked me to send the certificate back. I should invoice them for the stamp, envelope and admin charges for returning it!

Anyway, I won't be going back to Elephant again and wouldn't recommend them. I could understand maybe a Â£10 - Â£20 fee, but Â£47.50 is daylight robbery.

**Chris** · 02-02-2009, 17:18

It may also be illegal. Penalty charges certainly are illegal, an 'administration' charge must reflect the actual cost of the admin work done. This I think is in the same sphere as all the hoo-hah over the banks charging a fortune to write to people when they go overdrawn. Contact your local CAB for advice.

moaningmags · 02-02-2009, 17:22

I took out a policy with them and cancelled it less than 12 hours later. At that point they tried to bill me for Â£19, told them to shove and not heard from them since.

Charlie_Bubble · 02-02-2009, 17:26

Quote:

Originally Posted by Chris

It may also be illegal. Penalty charges certainly are illegal, an 'administration' charge must reflect the actual cost of the admin work done. This I think is in the same sphere as all the hoo-hah over the banks charging a fortune to write to people when they go overdrawn. Contact your local CAB for advice.

I think they've covered themselves by actually stating in your documentation the charge they will apply. The bank charges are a bit more random aren't they? It's called a cancellation fee as well, which also probably gets them off the hook.

In the same section though, it says, if you get insurance with them and then cancel within x days cooling off period they will charge Â£22.50!! If I ever get another job where I don't have a company car, I won't be going with them, excessive charges and an overseas call centre.

---------- Post added at 17:26 ---------- Previous post was at 17:24 ----------

Quote:

Originally Posted by moaningmags

I took out a policy with them and cancelled it less than 12 hours later. At that point they tried to bill me for Â£19, told them to shove and not heard from them since.

I would, but they already have my money from the year and it's only a few months I'm getting back.

Just thought I'd make people aware. Look in your policy for cancellation fees. I think othe rinsurers have them too, but not quite as high.

**Russ** · 02-02-2009, 17:28

I used to work for their sister company Admiral and this may not be as clear cut as it seems: It might not be an administration charge per se - insurance companies have some sort of legal right to charge a percentage of the total premium depending on where the cancellation occurs during the policy date.

Not saying it's right but Admiral are able to do it, I'm assuming Elephant ("that's elephant.co.uk"

) do as well.

**Chris** · 02-02-2009, 17:29

Quote:

Originally Posted by Charlie_Bubble

I think they've covered themselves by actually stating in your documentation the charge they will apply. The bank charges are a bit more random aren't they? It's called a cancellation fee as well, which also probably gets them off the hook.

It's also illegal for a company to try to exempt itself from the law by inserting terms in a contract. Still worth getting advice, I reckon. What have you got to lose?

Charlie_Bubble · 02-02-2009, 17:32

I'm within the last 2 months, you'd think they'd be happy at getting 10 months of blood out of me.

---------- Post added at 17:32 ---------- Previous post was at 17:30 ----------

Quote:

Originally Posted by Russ B

I used to work for their sister company Admiral and this may not be as clear cut as it seems: It might not be an administration charge per se - insurance companies have some sort of legal right to charge a percentage of the total premium depending on where the cancellation occurs during the policy date.

Not saying it's right but Admiral are able to do it, I'm assuming Elephant ("that's elephant.co.uk"

) do as well.

Wouldn't surprise me if all those cheesy TV ad insurance companies are from the same parent company.

**Russ** · 02-02-2009, 17:35

Quote:

Originally Posted by Chris

It's also illegal for a company to try to exempt itself from the law by inserting terms in a contract. Still worth getting advice, I reckon. What have you got to lose?

It's likely to be water-tight. I worked there 10 years ago and back then people would try all kinds of angles to get out of paying charges. What with the publicity over bank charges recently I'm sure Mr Englehart has since re-written the company rules to ensure it's all legal.

**Chris** · 02-02-2009, 17:38

Quote:

Originally Posted by Russ B

I'm sure Mr Englehart has since re-written the company rules to ensure it's all legal.

I'm sure he has. But companies like this rely on people thinking it's not worth the hassle as much as they rely on tight wording.

RubberyDuck · 02-02-2009, 18:42

Once upon a time you could freeze your insurance, not sure you can do this still.

I've done it myself, though my friend did work for the company.

WHISTLED · 02-02-2009, 19:22

Most if not all companies have a clause like this, usually worded 'may' be charged..

Quote:

Wouldn't surprise me if all those cheesy TV ad insurance companies are from the same parent company.

Admiral, Elephant, Sheilas wheels, plus few more all the same company... Maybe Churchill cant remember

**Russ** · 02-02-2009, 19:28

Quote:

Originally Posted by WHISTLED

Admiral, Elephant, Sheilas wheels, plus few more all the same company... Maybe Churchill cant remember

Sheila's Wheels are not part of the Admiral group.

WHISTLED · 02-02-2009, 19:36

Yep meant diamond actually, other womens one.

Julian · 02-02-2009, 19:39

Quote:

Originally Posted by Charlie_Bubble

I'm within the last 2 months, you'd think they'd be happy at getting 10 months of blood out of me.

Earlier you said that the fee equated to around 25% of the premium.

Wouldn't you be better off just letting the insurance run, it would be cheaper.

Charlie_Bubble · 02-02-2009, 20:12

Quote:

Originally Posted by Julian

Earlier you said that the fee equated to around 25% of the premium.

Wouldn't you be better off just letting the insurance run, it would be cheaper.

Yeah, but then Id have to watch out in 2 months time for the renewal popping through my letterbox and cancelling quickly. They'd probably also charge my credit card in anticipation that I'd just renew and in 2 months time I am out of the country for just under 3 weeks on holiday, which would probably roll me over into a new year, paying insurance for no car and still having to pay the cancellation fee.

I'd rather just cancel it now. Besides which, I don't think you can insure "no car". If I kept it on the old car, what's to say the new owner doesn't have an accident and then my details get pulled up on the insurance system as the person to pay for the other parties damage.

---------- Post added at 20:12 ---------- Previous post was at 20:11 ----------

Quote:

Originally Posted by Julian

Earlier you said that the fee equated to around 25% of the premium.

Wouldn't you be better off just letting the insurance run, it would be cheaper.

It's nearer 20%.