Martin Lewis gives advice on cancelling car insurance on This Morning today
Martin Lewis offers advice about cancelling car insurance
When you subscribe we will use the information you provide to send you these newsletters.Sometimes they’ll include recommendations for other related newsletters or services we offer.Our Privacy Notice explains more about how we use your data, and your rights.You can unsubscribe at any time.
A viewer called into ITV’s This Morning today to ask Martin Lewis about an issue regarding cancelling her car insurance. The caller cancelled the insurance mid-policy and now the company is asking her to pay £3,500.
Martin asked the viewer how much she was paying a year for her car insurance.
“I stupidly got rid of the letter,” the caller replied.
“But I don’t think it was more than £200 a month.”
Martin was surprised, saying: “You were being overcharged for that.”
“So, you’re paying £1,600 a year and they’re making you pay £3,500 for cancelling it,” Martin noted.
The viewer confirmed that this was correct and agreed with the finance expert that it would have been cheaper to keep paying the insurance instead of cancelling it.
“That doesn’t seem like a fair or equitable way to operate to me,” Martin said.
He recommended that the viewer make a formal complaint to the car insurance company.
TikTok hair treatment recipe: How to make a natural hair mask using castor oil [BEAUTY]
How long should you leave your bedding between washes? [CLEANING]
When will Primark open? [SHOPPING]
Martin said: “I would make a formal complaint to them and say can you tell me why you’re charging me more to cancel it than I would’ve paid for the rest of the year.
“Under the regulator’s guidance you need to be treated fairly,” the finance expert added.
He continued: “And then if they don’t then I would take that to what’s called the financial ombudsman, which is a free independent arbitrator of whether you’ve been treated fairly or not.”
Martin recommended asking the ombudsman to look at the fee if the complaint is dismissed.
“I don’t know your specific policy, I don’t know the clauses within that,” Martin told the caller, but he still believed that the cancellation charge was unfair.
The caller had cancelled the insurance after only four months.
“Even if you’d continued paying it, it would’ve been another grand,” Martin said.
“Why they’re charging you £2,500 more than that to cancel it – that doesn’t seem right to me.”
The finance expert has previously given ITV viewers advice on when is best to renew car insurance.
In January this year, he told audiences that “talking beats price walking”.
Price walking is the fact that if you stay with an insurer, they “walk” the price up by £20 or £30, so the longer you’re with the company, the more you pay.
Therefore, Martin’s golden rule when it comes to renewing car insurance is: “Never auto renew without checking prices elsewhere first.”
Source: Read Full Article