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Ihor C

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Review of the Marshmallow, Car insurance:

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Predatory Pricing & Poor Customer Service

Policy Period: July 2024 - July 2025 Customer Since: 1 year, clean driving record Summary: Price Gouging & Unfair Practices Marshmallow attempted to increase my renewal premium by 231% above market rate then spent days trying to extract illegal cancellation fees. This is not a customer-focused company. Outrageous Renewal Pricing Their renewal quote vs reality: Previous premium: £2,466.65 Renewal demand: £4,306.23 (74% increase!) Market rate: £1,300 (found same day) Marshmallow overpricing: 231% above market Despite maintaining a perfect driving record with 1 year UK NCD, they tried to nearly double my premium while the market rate was 70% lower. Terrible Customer Service Response Times Timeline of delays: July 4th: Submitted formal objection and cancellation request July 4th-8th: Complete silence from Marshmallow (4 days!) July 8th: Finally responded after multiple follow-ups Customer service was unresponsive when I needed immediate assistance with pricing concerns. Attempted Illegal Fee Extraction After agreeing to cancel, they tried to charge: £58.99 "consumed premium" (for 5 days of rejected coverage) £30 administration fee Total attempted extraction: £88.99 Legal reality: Maximum £30 for cooling-off period cancellation per their own Terms of Business Agreement. They only backed down after I threatened regulatory complaints. Misleading Practices Auto-renewal price shock - 74% increase with no justification Ignoring cancellation requests - 4-day delay in processing Invented fees - charging for services explicitly rejected Bad faith billing - trying to extract £58.99 for their operational delays Market Comparison What I actually paid elsewhere: Marshmallow wanted: £4,306.23 Market alternative: £1,300 (identical coverage) Savings by switching: £3,006.23 Same car, same driver, same coverage - 70% cheaper elsewhere. Legal Issues Their practices potentially violate: Consumer Contracts Regulations 2013 (cooling-off rights) FCA "Treating Customers Fairly" principles Consumer Rights Act 2015 Only resolved after threatening FCA and Ombudsman complaints. Final Verdict Avoid Marshmallow Insurance. Pros: None identified during my experience Cons: Predatory renewal pricing (231% above market) Poor customer service response times Attempts to charge illegal fees Bad faith business practices Complete disconnect from market reality Recommendation Shop around before renewal. I found identical coverage for £1,300 vs their £4,306 demand. Know your cooling-off rights - you have 14 days to cancel with minimal fees regardless of what they claim. Don't let them pressure you into accepting unreasonable pricing. The market has much better options. Alternative Action If you're stuck with similar issues: Know your 14-day cooling-off rights (£30 max fee) Threaten FCA/Ombudsman complaints Shop competitors immediately Document everything in writing Update: After regulatory pressure, they waived all fees and I paid £0 to Marshmallow. Found better coverage for 70% less elsewhere. Save yourself the hassle - choose a different insurer from the start. Reviewed on: 9th July 2025

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