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MSE News: Beware sky-high insurance change fees
Former_MSE_Helen
Posts: 2,382 Forumite
This is the discussion thread for the following MSE News Story:
"Consumers should watch out for costly fees when cancelling or adjusting details on car and home insurance policies"
"Consumers should watch out for costly fees when cancelling or adjusting details on car and home insurance policies"
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Comments
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When I moved house Direct Line charged me ~£30 when I phoned to update my car insurance policy. Just as I was about to hang up I remembered that my annual mileage would also change, so I confessed that I'd forgotten to mention it earlier. They wanted another £30 to make the change despite it being the same phone call!!
After speaking to a couple of managers I eventually got them to waive the second charge, but the fact that they even considered doing it was ridiculous.0 -
If you get nowhere, you can complain to the independent arbitrator, the Ombudsman.
The FOS publications have them rejecting a complaint as they felt £50 was acceptable. That was over 5 years ago. So, it seems strange that the article is going on about £30 charges and going to the FOS if you dont like it when the FOS themselves published in their monthly complaint examples that they rejected a complaint about £50. (although it does say it expects the cost to reasonable and justified and that the insurer in that case did justify the £50).
It is a shame that the article doest give even a small mention to why these explicit charges have cropped up more over recent years than in the past. A little bit of consumer education and understanding may be helpful. it would be a shame if insurers had to revert to the old way which would see premiums rise for everyone. Instead of only those creating work paying for the work they create.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
"Consumers should watch out for costly fees when [STRIKE]cancelling or adjusting details on[/STRIKE] purchasing car and home insurance policies"
It may be slightly pedantic, but wouldn't the above be a more appropriate piece of advice? Consumers should be checking administration fees at the point of quote/inception, not after the event.0 -
hastings charged my bf £85 + 3 days worth of insurance to cancel a policy he did not have with them as they renewed it even after he phoned, emailed and sent a letter to say he wishes to cancel at the end of his insurance.0
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Not an insurance industry analyst then...Dan Plant, MoneySavingExpert.com money analyst, says: "This is yet another example of financial companies walloping us with ludicrously disproportionate charges, punishing consumers for simply living normal lives. Slapping a £30 charge on you for a few button pushes, or £65 for daring not to need the policy any longer is outrageous0 -
It would be useful to know how many were successful.It receives around 50 complaints each month from consumers about these admin fees.0 -
It would be useful to know how many were successful.
Yes as the one example they have published doesnt reflect that sort of volume. I wonder if they are grouping in premium adjustment complaints in with those as well. A frequent error we see on this forum is people mixing up increased premiums due to new risks as being an amendment charge. Plus, the [relatively] pro-rata refund that often turns into an extra payment for those paying monthly.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
At the moment insurance intermediaries make most of their income through commission on the policies sold. It will be interesting to see consumer reaction if, like financial advice, intermediaries are forced to charge fees for their services.
The difference of course is that insurance is perceived as a 'distress product' whereas financial advice isn't.0 -
Hasting Direct wanted a similar amount as an admin fee when I moved, plus the increased premium. Expected the slight increase in premium, but got the admin fees removed.
To do this, I used The Data Protection Act. If a company holds incorrect information on you, they are obliged to amend it. Schedule 1(1)(4) of the DPA lists the requirement for personal data to be kept up to date. If they'd been notified and refused, I successfully argued they'd be in breach of the DPA.
Could be something to use. Or may have just agreed with me as a means of ending the call.0 -
The FOS publications have them rejecting a complaint as they felt £50 was acceptable. That was over 5 years ago. So, it seems strange that the article is going on about £30 charges and going to the FOS if you dont like it when the FOS themselves published in their monthly complaint examples that they rejected a complaint about £50. (although it does say it expects the cost to reasonable and justified and that the insurer in that case did justify the £50).
It is a shame that the article doest give even a small mention to why these explicit charges have cropped up more over recent years than in the past. A little bit of consumer education and understanding may be helpful. it would be a shame if insurers had to revert to the old way which would see premiums rise for everyone. Instead of only those creating work paying for the work they create.
Or they could just stop using it as an excuse to rip people off.0
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