Cancelling or not renewing, are they different.

[UKSBD]

I have an insurance policy that expires soon.

My broker charge a cancellation fee, if I say I don't want the policy auto-renewed is that classed as cancelling or not renewing?

 

[Faevilangel]

Depends on the contract terms I suspect but for all the insurance policies I have held there has never been a cancellation charge for not renewing at the end of the term... I didn't go through a broker though and go direct to the insurance company... It would be really odd if there was a cancellation charge for not renewing with them and would likely interest the financial ombudsman

 

[Cameron Ziafat]

I don't know what kind of policy you're referring to but I have experience in general insurance Car, Home, Pet, Life etc. and I've never come across a broker or an insurer that charges a canx fee when the policy is allowed to expire :S

 

[NuBlue]

Personal thought; cancelling would be terminating the contract before renewal date. Not renewing isn't a cancellation, there's no contract to cancel.

 

[UKSBD]

They haven't tried to charge yet, just being prepared

Obviously I will use my words wisely and will not say please cancel it, but will instead say please don't renew it.

 

[smallclaimsassistance]

It does indeed depend upon the terms of the contract, but if your contract contained a term which imposed a "cancellation fee" for not renewing, that would undoubtedly fall foul of the Unfair Terms in Consumer Contracts Regulations (1999), which require terms in B2C standard form contracts which are not individually negotiated to be fair. There is nothing fair about a term that charges you because you choose not to renew.

 

[Simply Business]

Hi @UKSBD, you should be fine if you're simply not looking to renew - it would be very odd to charge you for that! However, make sure that you alert them in due time that you don't wish to renew your policy as many insurers will run continuous cover. Letting them know beforehand will avoid any unnecessary extra phone calls etc