Upheld: Other regulated complaint complaint against Cover Genius Limited (trading as RentalCover.com)

Decision detail

Summary

Mr Z purchased motor insurance as part of a car rental booking in November 2025 and cancelled before the rental start date. The insurance policy explicitly offered free cancellation with full refund of premium up to the rental commencement time. CGL initially refused to refund the £89.92 premium, claiming policies were only refundable up to the start date, and did not process the refund until April 2026, over four months later, following FOS investigator intervention. The ombudsman upheld the complaint, finding CGL breached its own policy terms and ordered refund of the premium plus interest and £100 compensation for the distress and inconvenience caused by CGL's poor handling.

The Ombudsman's reasoning

The ombudsman found that CGL's policy terms explicitly permitted cancellation without cause up until the scheduled rental commencement time with a full refund of premium. Mr Z cancelled before this deadline, satisfying the policy conditions. CGL's failure to refund the premium when cancelled, and its subsequent delay of over four months in processing the refund, constituted a breach of its policy terms. The ombudsman rejected CGL's argument that it refunded upon cancellation, as evidence showed the refund was only made after the FOS investigator's intervention. CGL's poor response, including an incorrect final response letter, caused unnecessary inconvenience and distress.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website