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Home Insurance charges - a con?
Clairbush
Posts: 3 Newbie
Admittedly we have had bad debts in the past and although we have sorted ourselves out now we are currently unable to get a mortgage through the main high street banks and building societies. We have been with GMAC for 4 years.
In the past our home and contents insurance was with Countrywide Insurance Services, as recommended by GMAC. However, this year we decided to shop around and found a much cheaper option with AA through https://www.confused.com.
However, we received a letter from GMAC saying that as we have changed provider they are going to charge us £40 for the privilege of doing so with an additional £40 if we do not provide photocopy proof of cover within 7 days. The letter is dated 4th April and we only received it on Saturday 7th April due to the Easter post. Although the extra cost still works out cheaper than what we were paying, I'd like to know from others whether they think this is reasonable or not.
On their letter they state the charge is for a lapse notification fee and in their conditions it states that if independent insurance is taken out they will charge a fee in respect of the company's administration costs in checking the policy and updating their records.
We made sure as one policy ran other, so the other one started so there was no lapse in cover!
Any advice gratefully received.
Thanks.
In the past our home and contents insurance was with Countrywide Insurance Services, as recommended by GMAC. However, this year we decided to shop around and found a much cheaper option with AA through https://www.confused.com.
However, we received a letter from GMAC saying that as we have changed provider they are going to charge us £40 for the privilege of doing so with an additional £40 if we do not provide photocopy proof of cover within 7 days. The letter is dated 4th April and we only received it on Saturday 7th April due to the Easter post. Although the extra cost still works out cheaper than what we were paying, I'd like to know from others whether they think this is reasonable or not.
On their letter they state the charge is for a lapse notification fee and in their conditions it states that if independent insurance is taken out they will charge a fee in respect of the company's administration costs in checking the policy and updating their records.
We made sure as one policy ran other, so the other one started so there was no lapse in cover!
Any advice gratefully received.
Thanks.
0
Comments
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The AA will pay GMAC upto £25 towards the admin fees.
Taken from the FAQ here
"Q) Will you pay any admin fees if I move away from my building society?
A) Yes, up to a value of £25, upon proof of payment. "
I would say you need to pay the £40 then contact the AA to see where you need to send a copy of the invoice to for your £25 refund.0
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