Motorcycle Direct - Insurance cancellation fee

MarkDOD · L Plate Warrior Joined: 10 Jun 2019 Karma :

I sold my bike over the weekend and have just cancelled the insurance as I have no plans to buy another machine in the near future. The cancellation fee was an eye watering £50 which I contested, but was informed that it was documented in their terms of business and they refused to negotiate. Obviously we all read every word of the 'small print', but what are your views on this and your experience with other insurance companies when cancelling a policy or making changes.

R1stu · Shrek! Joined: 12 Mar 2003 Karma :

It's a rip off yes. But it would have also been made verbally on the setup call, along with their admin charges for changes.

How long was left of the policy?
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Carbon closet tart! https://www.bikepics.com/members/r6stuk/02r6/
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Current bike 1991 Honda ST1100 Pan European, 1986 Honda cb350sg (Finished)

Polarbear · Super Spammer Joined: 24 Feb 2007 Karma :

Yes they are crooks but it will be in the small print somewhere.

I think, as insurance is compulsory, it should be much tighter controlled with a view to rates, charges etc. but it isn't going to happen.

The thing with cancelling a policy is often it is cheaper just to leave it to run out. I've done that before BUT that was before I found out it can cost you a lot if the buyer has an accident when you still have insurance on the bike.

Mark it down to a painful learning curve.
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Triumph Trophy Launch Edition

MarkDOD · L Plate Warrior Joined: 10 Jun 2019 Karma :

Thanks for the input. I think that a charge is acceptable for some of the changes on an insurance policy, but this was usually no more than £20. I’d say few people trawl through small print or, like me, don’t pay too much attention to terms quickly spin off at the end of a call. If you set up the policy on-line of course, reading the terms is the only way to make yourself aware of the charges. I wonder how many people take notice/take the charges into account when signing up to a new insurance policy? I certainly will now.

In answer to the question about the time left before the insurance expired, it was about £100 worth, of which I will see about £50. And it is important to cancel ASAP to avoid getting wrapped up in someone else’s claim.