- Office of Fair Trading
- United Kingdom
ALL VEHICLE INSURERS RIP US OFF WITH 'EXIT' COSTS ON A FIXED TERM INSURANCE PRODUCT. Why, when I sign a 12 month contract with a car insurer are they allowed to charge me up to £40.00 to 'end' the same 12 month contract? In other words if I shop around and can get a better deal, I am penalised 'for administrative costs' - UNLESS I RENEW WITH SAME COMPANY. This must be restrictive trade!
If I rent a property for 12 months, I am NOT charged another 'months' rent at the end of 12 months. If I hire a car for 2 weeks, they don't charge me additional fees if I then rent from another supplier, a different car, for 2 weeks.
This penalty is surely wrong? I sign for 12 months - pay my premium and I should be free to shop around at term end without added penalty. It's a fixed term contract!
We, the undersigned, call on the UK Office of Fair Trading to investigate and ban the use of 'additional' administrative exit fees' that are applied at the end of a mutually agreed, time limited contract - i.e. car insurance.
This action will allow consumers to 'shop around' freely within a truly open, competitive market.
The Stop the annual vehicle insurance racket petition to Office of Fair Trading was written by Andy Hearnden and is in the category Consumer Affairs at GoPetition.