Insurance charges - unlawful ??

[Ali Bongo]

I have been on a course and have been prompted to check my car insurance. I am insured for 'social, domestic and pleasure' and a 'permanant place of work'. I have made enquiries and this does not include going to a different place, even if it is for work purposes, ie a traning course. So I need to have 'business insurance'. My insurance company want to charge me £25 admin fee to alter the policy. I said I felt this was excessive for pushing a button and was it similar to the banks ie not charging a reasonable fee for the job. However, if I add it at the time of my renewal, there is no charge !! What do others think ?

[Bossyboots]

I think you should do what my OH has done and got his firm to arrange cover for staff using their private cars for company purposes. Or at the very least get them to meet the costs of you covering it yourself.

[Astaroth]

The difference is that the bank fees are there as a penalty clause for breaching your contract. As such the banks are not allowed to make profit.

In the case of insurance the fee is for changing the contract and therefore can be profitable if they wish - in the same way they can also charge for early termination of the contract.