Not upheld: Other regulated complaint complaint against Collingwood Insurance Company Ltd

Decision detail

Summary

Mr S complained about cancellation charges totalling £129.00 when he cancelled his car insurance policy with Collingwood Insurance after two months. The charges included a £75.00 non-refundable intermediary arrangement fee and £84.40 retained premium based on a front-loaded cancellation scale. The ombudsman found that the arrangement fee was clearly communicated during the online sales process with visible cost breakdowns, and that the cancellation scale, while unusual, was reasonably highlighted in the policy document and IPID documentation provided before purchase. The ombudsman concluded that Collingwood Insurance had fairly communicated the terms and correctly calculated the charges, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that the intermediary arrangement fee of £75.00 was clearly communicated during the online sales process with visible cost breakdown and terms, making it fair and normal for the industry. Regarding the front-loaded cancellation scale, while unusual in the domestic car insurance market, Collingwood Insurance had reasonably justified it with historic claims data and had taken reasonable steps to highlight this important term through references in the policy document and IPID document provided ahead of sale.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website