Sold the Impreza on Saturday so tried to cancel the insurance today. I pay monthly so was rather surprised when the YTS boy on the phone told me that I would have to pay them a £56 time at risk (or something like that) payment. Is this usual and what are they going to do if I refuse? I have cancelled the Direct Debit so I can't see how they are going to get the money.

Other thing is I have full No Claims Bonus and wondered how long this is valid for if I don't have my own policy. I seem to remember 2 years is this correct?

2 years is correct, some companies will accept it up to 3 years after expiry, however if you don't pay the TOR (Time on Risk) they won't have to send you your no claims bonus.

I have only had the policy for 3 months and still have the proof of No claims Discount from my previous insurance.

I sent them back the policy yesterday so if they do want some extra money I am probably going to tell them I refuse to pay it. After all what are they going to do? They will probably send me a threating letter mentioning baylifts but you know as well as I do that they will just write it off.

Why don't you read the Terms and Conditions of the policy that you signed (i.e. entered into a legal agreement)?

I've no idea whwther the charge is justified but if you agreed to pay it if you cancelled your policy early (again you'll need to read the T&C's), I don't see you've got a leg to stand on.

I'm sure you'd be the first to complain if the boot was on the other foot.

Bravo, well said

What read something before I sign it!! nah, can't be bothered with that! ;-)

Anyway I got a letter today saying that they noticed I have cancelled my direct debit and if I want cover to continue I must send them £290. They also said that if I want to cancel the policy I must send them my insurance certificate. Well I sent them the documents back a few days ago so they can sort it out now.

There was no mention of any time on risk payment in the letter but if they do want the £56 then I wish them the very best of luck in getting it.

Also, I have absolutely no connection WHATSOEVER with the insurance industry (except to pay my premium once a year)