MSE News: The devil is in the details: Insurers charge huge fees for simple changes

In the race to the bottom that is to be expected.

I expect nothing else other than poor customer service. I do not however expect to pay through the nose for it.

Really? So, if they had no incoming service calls all day, every day, you think they would have to employ the same number of people and have the same costs?

Read the quote again! It was about regulation and system licencing fees not staffing costs.

And going with a provider with a lower premium but explicit charging is a way to do that. Except you thought you were special and terms dont apply to you and if everyone did what you did, the costs would rise for all.

I paid a lower premium and had the charge waived, that doesn't make me special it makes me smart.

Your claim that if everybody did this costs would rise for all, doesn't ring true. Call centre costs are pretty much standard accross most industries. Despite this utility companies, the DVLA, banks, building societies or sky etc... they don't charge £25 a time to change your details, so what makes insurance companies so special? They charge these fees becaues they can.

How would you be ripped off by paying a disclosed fee that you agreed to?

Definition of Rip-off from the Oxford Dictionary:
"rip-off
ˈrɪpɒf/
nouninformal

noun: rip-off; plural noun: rip-offs; noun: ripoff; plural noun: ripoffs
a fraud or swindle, especially something that is grossly overpriced."

An example of grossly overpriced I would consider; a loaf of bread costing £1000.00, a pint of milk costing £50.00 or a car insurance firm charging £25.00 to type two words into a computer.

The fee that was pre-disclosed was different to the fee they wished to charge, the wording of the terms and conditions were ambiguous to say the least and did not state which changes attracted a fee and which ones did not. That's hardly what I would describe as "pre-disclosed."

You blackmailed the company into not charging it

Put forward a shred of evidence to back up that rediculous claim or shut up! The company backed down because they couldn't justify the fee. Clearly their spokesman (you) weren't at work yesterday or you could have come on the phone and pointed out the error of my ways.

So, you have no moral high ground here

Sorry, I'm not going to take a lecture on the "moral high ground" from somebody who clearly works in the industry and more than likely has a vested interest in ripping off their customers with extortionate fees. The financial services industry isn't exactly a renowed bastion of honour and integrity is it?

If you feel that the fees your insurance company charge are fair, reasonable and transparrent feel free to pay them. I on the other hand think mine were taking the p and got them refunded.

You are not comparing models correctly. Utilities have one model. The include the costs of their call centres in the product pricing. However, financial services companies have been encouraged to start unbundling costs. Indeed, in some areas it is mandatory.

If an insurer opts to use a flawed model where the only way they can make a profit is to charge for extras, then bigger fool them. I however don't buy that. There is simply no way is a company of this size going to risk a loss on every policy in the hope that the customer has to pay a fee mid policy.
It comes down to greed and charging as much as you can get away with. 99% of the time they get away with it without being challenged and 1% of the time they don't.

You complained and that generates costs. If you refer the complaint to the FOS, they have to pay £500 (even if the complaint is rejected). So, they had a choice. Give in to you and pay £25 or suffer £500 FOS fee. They would have won the complaint at the FOS as they FOS have no concerns over a £25 fee.

Wrong again!
They backed down when it became apparent they'd given out of date information at the beginning of the policy.
It's also generally good business practice to keep your customers happy, and keep them coming back.
Somebody with a bit of common sense and discretion clearly thought it's better to waive the fee and hopefully he'll renew with us next year!
Moral of the story, if you don't want customers complaining to the FOS don't provoke a situation where the customer drags you down that route. If you live in glass houses you dont throw stones.

What vested interest do I have?

You're overwhelming desire to defend greedy insurers would lead me to think you work in the industry. Therefore you probably do very nicely out of charging admin fees for doing not alot of admin.

lets hope your employer thinks the same way about you when price pressures impact on them.

Fortunately, if that happens I can always get a job in an industry which generates money for doing absolutely nothing and charges extortionate fees for typing a few words. Nice work if you can get it I'm sure! I've no doubt it beats doing an honest day's work hands down.

What about all the others on the thread highlighting the issues. Are you accusing them of all working for the insurance companies as well?

Back at you! What about the others who've successfully challenged fees and had them waived? Are they all guilty of bumping up fees for everybody else. Should they all be hanging their heads in shame?

Logic not your strong point is it. I earn nothing out of those fees. However, as I carry no bias, I can see the pros and cons of the various models.

Neither is yours! You have nothing to gain from the fees yet you're in favour of them. Are you a turkey voting for Christmas?

I know a rip off when I see one and as for seeing the pros and cons of the various models, stop trying to pretend you're more educated than you actually are. You're not fooling anyone.

There's an old saying that a fool and his gold are easily parted. Keep believing Your Own BS and keep paying the fees if it makes you feel morally superior by all means. I on the other hand shall sleep soundly in the knowledge that it only takes a phone call to have them waived and that you and the rest of the mugs are paying through the nose for something to preach at others from the moral high ground.

You're entitled to your opinion and I'm entitled to mine. You're nobody to tell me any different.

lock1rocks wrote: »

We have just sold my wife's car and cancelled the car insurance (Direct Line) and breakdown cover (Saga). Direct Line charged £47.70 while Saga waived the administration fee for the change in cover required. We currently have other policies with Direct Line (house buildings and contents) and Saga (annual travel) and on the next renewal of the buildings and contents we will, as a consequence of this experience, remove our business from Direct Line.

Until they offer you the best price in future again I assume? Holding a grudge against an insurer because they have applied a fee you knew about from day 1 of the policy is bizarre and asinine.

@amst

asinine /QUOTE]

You could have said foolish or stupid instead of trying to make yourself sound more intelligent than you actually are.

If you'd give your future business to a company who treated you this way then perhaps it's you that's

asinine

. Either that or you've got more money than sense, in which case this probably isn't the right blog for you. We're about saving money not giving it away.