Refunds at cancellation of car insurance policy

konraado

Hi everone,

If for example i decide to sell my car and cancel my car insurance policy, is there any chance to get any refund?
I paid deposit to brokers around 600 and then 5 monthly instalments. At my bank account the deposit is shown as paid to brokers directly but monthly payments to finance company.

Thanks

Ring them?

tuisginideach

Did the 5 monthly instalments + deposit cover the whole 12 period or have you only paid 5 out of 12 instalments? if the latter, i doubt you would be refunded.

Sue Pa Key Pa

It sounds as if your broker arranged premium finance, as opposed to a direct debit with the insurer. This is, effectively, a personal loan used to pay your insurance company the full amount at the start of the policy.

Your insurance policy should state the % credit (if any) you will get on cancelling the policy. In it's 1st year, it can be quite low. The premium finance company have 1st call on any return to offset against the balance on your loan. If there is a surplus, they will forward it to you. If there is a shortfall, they will pursue you for it. As this is a personal loan, it could affect your credit rating

konraado

Yes, that's what it looks like. I need to pay them after cancellation one last instalment. But where the deposit went then?

Sue Pa Key Pa

The deposit, less the broker's handling fee, would forwarded to the insurance company along with the amount financed to cover the full annual premium. The 5 payments would comprise of the premium less deposit, the interest applicable to the agreement and the set-up charge of the finance company