SouthEastHire
Active Member
As my name may suggest, I had set up a self-drive hire business for my C63 which was purchased specifically for this purpose. During the time things were getting off the ground I had a change in my day job which has become a lot more demanding than anticipated but fortunately the pay is half decent. So after not putting as much effort into hiring the C63 then driving it every weekend, it was becoming ‘my car’ and even more apparent that I did not want anyone else drive it!
I decided at the beginning of July to knock the idea on the head, cut my losses, start having a few subtle mods done and enjoy the car (secondary cats get removed yesterday!). I am unfortunately having some issues regarding a credit that is owed to me from a specialist hire insurance policy I cancelled at the beginning of the month. If anyone can advise me on the following it would be greatly appreciated. I have included all the figures for accuracy more than anything.
The policy was £3,900.00 of which I paid a £790.00 deposit
I then made 4 monthly payments of circ £300.00 which is net of the interest applied
So in total I have paid £1,990.00 of a £3,900.00 premium for what calculates to be 99 days of cover.
I pro rata that as £10.68/day for 99 days= £1,057.32
Now seeing as I have paid £1,990.00 to date, I calculated my refund to be circ. £900. However the broker sees it differently. Apparently I am only due £181.00 which is the difference between the remaining premium (advised by the insurer) with the finance company and what id paid to date. To me that sounds like a part credit that only concerns the finance element of this agreement.
The broker advises that the £790 deposit is no refundable as it is a new start up but their conditions do not stipulate this. I am looking at it in simple terms that I brought a product at £3,900 and within that are 365 units. I only used 99 units of 365 so should only be charged pro rata 99 days less and fees or penalties.
The below clauses are in the insurers terms and conditions and to me support my way of thinking albeit with a penalty charge of 1 months premium. So for arguments sake that’s £900 credit less £300 fee so £600 credit not £181.
7.2.4 Provided this insurance is an annual contract, covering only a single vehicle, the premium will, upon cancellation, be refunded pro rata less the short period charge of one month’s premium, which is retained by Octane Underwriting. No refund will be allowed if any claim has been made during the period for which insurance cover was provided.
7.2.5 If this insurance is a multi-vehicle policy, you will be entitled, upon cancellation, to a return of premium after application of our short period rates, although no return of premium will be allowed if the claims under the policy in the period of insurance have exceeded the entire premium fund. Otherwise, the premium for each vehicle covered will be refunded pro rata less the short period charge of one month’s premium, except that no refund will be allowed in respect of any insured vehicle which has been the subject of a claim.
Further to the above clauses there is no real definition in what type of policy I had. As it was self-drive hire they class it as multi car although it’s called self-drive. Not multi car. I only had 1 car so technically it’s a single car policy but these definitions don’t all tie up. Either way they both mention pro rata less 1 month premium as a fee.
Even if you can’t help, thanks for taking the time to read this mega boring post!
Ollie
I decided at the beginning of July to knock the idea on the head, cut my losses, start having a few subtle mods done and enjoy the car (secondary cats get removed yesterday!). I am unfortunately having some issues regarding a credit that is owed to me from a specialist hire insurance policy I cancelled at the beginning of the month. If anyone can advise me on the following it would be greatly appreciated. I have included all the figures for accuracy more than anything.
The policy was £3,900.00 of which I paid a £790.00 deposit
I then made 4 monthly payments of circ £300.00 which is net of the interest applied
So in total I have paid £1,990.00 of a £3,900.00 premium for what calculates to be 99 days of cover.
I pro rata that as £10.68/day for 99 days= £1,057.32
Now seeing as I have paid £1,990.00 to date, I calculated my refund to be circ. £900. However the broker sees it differently. Apparently I am only due £181.00 which is the difference between the remaining premium (advised by the insurer) with the finance company and what id paid to date. To me that sounds like a part credit that only concerns the finance element of this agreement.
The broker advises that the £790 deposit is no refundable as it is a new start up but their conditions do not stipulate this. I am looking at it in simple terms that I brought a product at £3,900 and within that are 365 units. I only used 99 units of 365 so should only be charged pro rata 99 days less and fees or penalties.
The below clauses are in the insurers terms and conditions and to me support my way of thinking albeit with a penalty charge of 1 months premium. So for arguments sake that’s £900 credit less £300 fee so £600 credit not £181.
7.2.4 Provided this insurance is an annual contract, covering only a single vehicle, the premium will, upon cancellation, be refunded pro rata less the short period charge of one month’s premium, which is retained by Octane Underwriting. No refund will be allowed if any claim has been made during the period for which insurance cover was provided.
7.2.5 If this insurance is a multi-vehicle policy, you will be entitled, upon cancellation, to a return of premium after application of our short period rates, although no return of premium will be allowed if the claims under the policy in the period of insurance have exceeded the entire premium fund. Otherwise, the premium for each vehicle covered will be refunded pro rata less the short period charge of one month’s premium, except that no refund will be allowed in respect of any insured vehicle which has been the subject of a claim.
Further to the above clauses there is no real definition in what type of policy I had. As it was self-drive hire they class it as multi car although it’s called self-drive. Not multi car. I only had 1 car so technically it’s a single car policy but these definitions don’t all tie up. Either way they both mention pro rata less 1 month premium as a fee.
Even if you can’t help, thanks for taking the time to read this mega boring post!
Ollie
