Alex

Aug 15, 2024

Cancellation Tax

So, we took out a Collingwood Learner policy for my daughter on our car. She passed her test yesterday and as per their instructions, I cancelled the policy. The next thing I get is an email telling me I owe another £40 cancellation fee (Tax). But they force you to cancel the policy, and then tel you you have to pay an admin fee. Ok, it’s in the T's and C's. But they know full well no one thinks that will apply to them, because why would it. So not only do they get 2 months risk free for the policy, they get a nice little bonus in the process. It's an absolute disgrace. They justify this by claiming there are two parts to the company and one demands the fee off the other....but don't just take my word for it. Here is a copy of their justification. They have you over a barrel. Thank you for your email and I am sorry that you are unhappy with the cancellation process. We, as the insurance intermediary, are a separate company to your insurer, Collingwood Insurance Company Limited (CICL). Your insurer stipulates within their Terms and Conditions that the policy must be cancelled once our policyholder has passed their practical driving test. This applies to all customers, and I can also confirm that had we not been informed that you had passed your practical driving test, we would have conducted verification checks when processing a renewal invitation, at this point we would have been notified by the DVLA that you had passed, the insurer CICL, would have enforced cancellation and charges would still apply, therefore you have not been treated any different to any other customer who notifies us or doesn’t, the same charges apply to all. Upon cancellation, we Collingwood Insurance Services UK Limited (CISL), apply a non-refundable £40.00 cancellation processing fee as outlined in our Terms of Business Agreement, our fees allow us to maintain policies throughout the policy term. I look forward to their generic condescending reply.