Hi Cuvner,

Sorry to hear that you've experienced a problem, if you'd care to PM me with your details (ie. actual name, date of birth, reg number) i'm happy to check into the situation for you.

Firstly, we only deal with Underwriters that offer annual policies. If you need temporary cover, or are planning to sell the vehicle and not buy another within the next year it is always prudent to check the cancellation scale prior to going ahead with an annual policy.

The level of work/vetting involved for an underwriter/insurer when setting up a policy is far greater in the first year and as claire correctly points out most underwriters charge a short period cancellation fee which equates to a percentage of the premium if cancelled within the year.

As an independent brokerage, we are employed by and work for the client rather than the Insurer and whenever given the opportunity to do so (ie. been supplied up front with the information that people are looking to sell the vehicle within the first year of a new business contract) would advise the extent of of the charges for each respective underwriter.

All documentation, advertising, terms, conditions & marketing indicates that we purely offer annual cover. Thus when arranging annual cover it is always carried out upon the basis that it will run for the entire term.

Should the cancellation be due to a switch to a vehicle/something the respective underwriter cannot cover, whilst they are not obliged to do so we can usually negotiate a 'pro rata' (daily calculated) cancellation on your behalf if given the evidence/oportunity to do so.

With regard to paying by instalments, when an underwriter/insurer does not offer a finance facility we do try to accomodate people's finance need by sourcing an instalment facility via an Insurance premium finance specialist. Ordinarily this would operate in an identical way to your Insurer in terms of mechanics and there is no visible difference to an Insurer that offers finance when the annual policy runs its term.

Within this post people have stated to just cancel the ddm and they never bother chasing. Technically whether it is an Insurer finance plan or via a finance company they would be within their right to pursue funds owed under the contract. But clearly the level of tenacity would depend upon the organisation concerned.

To clarify the legal standpoint, the Distance Marketing Directive affords all new policyholders a 14 day 'cooling off' period to peruse the documentation enclosure and make sure that the terms of the policy (and finance) are acceptable.

Once this period has elapsed you are deemed to have read and understood the enclosure.

In addition, to ensure people understand thoroughly our process also involves the signing and returning legal contracts which clearly outlay and declare the basis of the contract.

Unfortunately, the moral of the story is to either:

1) Tell your Insurer/broker if you require short term cover up front so they have the opportunity to properly advise you as to the potential outcome

2) Always make sure you find out the cancellation charge of the policy

3) READ the documents that are sent to you within 14 days and cancel under cooling off if unacceptable

4) DO NOT sign, return and proceed with a contract that you are unhappy with, or not prepared to honour


We will always try to help where possible, but it is very difficult to do so in a retrospective situation or where we havent been given the opportunity to do so.

Kind regards

Tony