Should my car insurance company charge me for the last 2 months of my insurance even though i am cancelling?

Question

I have cancelled my car insurance with yes car insurance & they have advised me that as I have 2 months left they will still take my last 2 months direct debit in one payment.

Is this the way insurance is going now??

Answer 1

on most companies policies they have a scale of how much they will give you back depending on how long you have had cover for. I think  it's the standard to not refund anything if the policy has been on for longer than 300 days

Answer 2

Read your small print - it's all in the contract!

Answer 3

I cancelled with state farm because they increased my rates from 179 per month to 650 per month - I payed on the 2nd of the month - cancelled on the 12th and received  A pro-rated refund of $470 for what I wasnt using. So I personally was refunded and I feel they should refund it- but I am unfamilar with yes car insurance

Answer 4

based upon your status,I believe you should find something useful here.http://car-insurance.online-tips.info/ca...

Answer 5

Insurance is generally done yearly so they can charge you this close to the end of the year, it is usually in the terms and conditions that they will charge you.

Answer 6

This is normal: the annual premium was based on coverage for a full year. If you had asked for a shorter period the premium would have been different.  Effectively you get a discount for buying twelve months insurance, and by cancelling early you lose the discount.

In the past, I've found that one month's cover has cost me about 25 to 33% of the annual premium, and when I bought six months of cover it cost me about 80% of the full year premium. It's priced this way as the insurers incur fixed costs every time you renew a policy, and also because they would prefer that customers didn't swap insurers every few months.