car insurance arrangement fee charged.


Hi all,

just came across something which surprised me and wondered if this is a common practice now with car insurance.

Basically insured my car 12 days ago, then insured my wifes car today and the rep at LV persuaded me to get a multi car quote for both. I was a bit sceptical as previous years its been more expensive than two single policies. But the multicar quote was super cheap so i accepted it.

So rang my other insurer and explained that i want to cancel my policy as i had a cheaper quote. They obviously charged me for the 12 days i had the car insured, but also charged the £50 arrangement fee which is non refundable. So i got a refund of £16 instead of the £56 i was expecting.

Now they cant charge a cancellation fee as im within 14 days of the policy start, so is this non-refundable arrangement fee a new thing to make money off people who cancel within 14 days.

I have no doubt that it will be in the T&Cs of the policy and accept it is my fault for not reading the policy properly. Also my new policy dwarfs any fees charged by previous company, just hadn’t come across this before.

So is the car insurance company within there right to charge the arrangement fee and not refund part of it, if you cancel within 14 days?


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