$50.00

And yes, this cancellation fee is clearly disclosed in the ESP terms and conditions.

One of the reasons that we charge a cancellation fee is to discourage customers who like to cancel their policy after they finish their RV season and then start it up again the next year. This is a bad practice because it means that you lose your locked-in guaranteed rate and your RV will be rated as an older vehicle at the rates in effect next year. Not only that, but anything that breaks while the RV is in storage ( which is when many parts fail from disuse as seals and gaskets dry out) are not going to be covered. .

OK, here are the facts. Yes, there is a $50 cancellation fee when you cancel a Good Sam ESP insurance policy before the end of the term. This is not one third of the annual premium, not even close. This is a processing fee. On the other hand, we offer you the chance to pay your premium monthly or quarterly without any interest charge for as long as you keep the policy. You can also have this fee waived if you transfer your policy to your new vehicle or to your car or tow vehicle. Or if you sell your RV, you can transfer the policy to the new owner and avoid the cancellation fee. This is also a great way to help sell your RV.

Not much differant than ending a cell phone account early or a sat. Dish contract early. Happened to me. Had been a customer of direct tv for several years but only about 6 months since we got the DVr receiver. Got hit with a high cancellation fee. Not happy but what could I do?
Ron

Have you ever cancelled an annual insurance policy%. 6 months , your coverage period, into the policy the expired premium will be 73%. This amount is determined in accordance with the Rule of 78, sometimes called the sum of the digits method.

In your case, the sum of the digits for the contract is 78. The sum of the digits for the remainder of the term is 27. Therefore the remaining portion the premium is 21/78 or 27%. I have no idea what the premium was but based on the Rule of 78, you would be entitled to a refund of 27% of the original premium.

The formula is (N*(N+1))/2. Where N is the number of periods. This also happens to be the calculation basis for the expired premium for things like maintenance contracts, most consumer loans, etc.

ScottG wrote:
It always leaves a bad taste in your mouth when you have to pay for nothing.
Seems like just one last opportunity to gouge the customer.

Maybe true, but as bumpy mentioned, was it on the contract before it was signed?

Personally, I think it's fair. The fact that you can get a refund on the remaining balance on what is basically an insurance plan if you don't use it, is pretty fair.

It always leaves a bad taste in your mouth when you have to pay for nothing.
Seems like just one last opportunity to gouge the customer.

The cancellation charge is 1/3 of the total yearly charge, which is excessive. If were well into your contract year, you may could have kept your contract for very little out of pocket expense.

didn't you sign a contract for the ESP? if so, why are you complaining about a cancellation charge?
bumpy