A post at UKMoneyPot states that the 14 day cooling off period you receive when buying many types of financial product, such as loans, insurance and credit cards, also applies when your policies “auto-renew”.
For example, as with many insurers, if your car insurance renews automatically each year, you still have 14 days from the start of the new policy to find a better quote. So you can treat the new policy as a reminder to check you’re still getting a good deal.
Useful to know, thanks UKMoneyPot!
I’ve recently discovered that car insurance providers are allowed to charge an admin fee even if you cancel during the 14 day cooling off period.
Most also give you back a percentage of the premium paid whenever you cancel too so the 14 cooling off period is practically pointless!
Ah, well..
I have been with Bennetts insurance (motorcycle)for the past 9 years, my renewal date was the 28/6/08 which is renewed automatically.
My son was due to take his test on the 14/7/08(and passed)and I wanted to add him onto my insurance. I contacted Bennetts on the 16/7/08 who told me I would have to cancell my policy and take out a new one with my son on. I paid £140 renewal on the 28/6/08 but all they would give me back was £59 for cancellation (just 18 days on the policy)lossing £80 and the new policy would be £236 this would mean I had paid out £316 to insure myself and son.
I went on the internet and found a company who did a better policy (with the same insureres Norwich union) for £123.98.
So I lost £80 with bennetts,it cost me £123.98 for the new policy this added up cost me £203.98 but with the £59 rebait from bennetts it ment I only paid out £144.98 all to geather far cheaper the Bennetts £236 quot (and they lost a good customer of 9 years.