Changing Address with car insurance firms

nevica

Hello,

I have recently moved house and needed to change my address with my car insurance firm. They have charged £25 for doing so. Is this legal? Are the insurance companies allowed to charge so much for doing so little? If it is legal how can I go about getting the law changed? I guess writing to my MP.

Nevica

glider3560

It is an administration charge for reissuing the documents. It is perfectly reasonable and will be present somewhere in the policy booklet/paperwork you were sent. As you had a cooling off period in which to read these, the charge is perfectly reasonable.

glider3560

Also, there are companies who don't charge administration fees, but these are generally more expensive in the first place. Take your pick - more expensive policy for all or just surcharge those would make the insurance co incur expenses. I know which I'd choose.

dunstonh

THey have charged £25 for doing so. Is this legal?

Of course it is. You are getting them to do more work and they are charging for that work.

Are the insurance companies allowed to charge so much for doing so little?

£25 is actually quite cheap. The FOS generally allow up to £50.

If it is legal how can I go about getting the law changed?

One assumes that you are unemployed or dont have to work for a living or perhaps you work for free.

Unfortunately, most do have to work and the people you speak to at the insurance company are paid to work there. So, when you speak to them and take up their time and use their facilities it costs the insurer. So, the insurer charges you. If you are not going to pay for it, then who is?

I dont see why you would want to go back to the old way where the charge is factored into everyone's premiums and everyone pays more rather than just those that use the service. Whilst insurance is all about cross subsidising the risk, the charges are not.

Quote

Dan_Thomas wrote: »

Also, if your MP has any brains he will tell you the same thing.

/sexist

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nevica

Well,

Thanks for your replies. Well, what I don't understand is that when I ring up the insurance company I speak to a person in South Africa. They charge £25 which will require 5 minutes work in front of a computer. I still do not see how they can justify charging £25 for 5 minutes work. I do not even speak to a person in the UK. I feel I am having the wool pulled over my eyes on this one! Where do they get the figure of £25 from. Have they plucked it out of thin air?

I do not think that £25 is reasonable at all and feel that there is something wrong with charging so much.

You see, as I see it, the company has actually made money out off me because they say they have cheap premiums
yet when I add up the figures I have paid more to them than I would have paid to a company who does not charge administration fees yet charges higher premiums. I realise that it is a competitive thing which the company enters into by charging less premiums yet they have to charge administration fees to stay afloat. The company is actually being more clever about how it makes its money. Unfortunateley I feel that this is unethical, sneaky and is totally unreasonable to charge £25 to change an address by slapping an administration charge on it. This for me is like a hidden tax and is not to disimilar to the banks charging excessive overdraft fees. To me there is something wrong with the system.

To me, this is just clever business practice disguising greed which is all to prevalent in business nowadays. The insurance companies should be there to serve their customers not to fleece them for all they are worth. I am sure that is how insurance companies started out years ago but unfortunately nowadays it is just business for them and turns into how much money they can make. This is what is so unethical and detrimental in the long run to their own business. We are in the midst of an economic depression because greedy men have tried to squeeze the last dregs of money out of what is essentually a non-starter. That is what this insurance company is doing to me and I do honestly feel that it is unethical and bad for business in the long run. They have certainly lost my business.

Nevica

pedro123456

I couldn't have put it better myself Nevica, greedy unethical, immoral undefendable practice by the IC's day in day out.

But guess what -the T&C (loopholes, get out clauses) are there for the policy holders benefit they say

The IC’s are as bad as the banks, corrupt to the core. That’s why there is lack of public confidence in Insurance products, and why the FSA are making them Treat Customers Fairly, although that will turn into a joke too.

Is about time they were challenged legally

Z

glider3560

But if they didn't have a £25 fee, it would be factored into EVERYONE's insurance premiums. That means that we would ALL pay more for our insurance.

nevica

Just a few more thought that I did not put in my last email.

I believe that this company has a lot of bad business practices:

1. They provide a bad customer relations service by having a call centre in South Africa. I am actually offended that I have to speak to someone on a different continent whom I will never meet in person.

2. In their attempt to have the cheapest premiums they have to charge large administration fees to stay in business. A lot of you have replied that this is reasonable to charge £25 in the name of business but I actually think it is detrimental in the long run. In this day and age of computers it is no work on their part to change a few lines on a screen. They have actually told me that I can download the documents of my schedule on-line indicating that they are a highly computerised company. They do not have to pay any postage fees and it seems to me that all they are doing physically is changing an address on a computer screen. I am the one who has to do all of the administation in downloading and printing of forms. So, I'm paying £25 for work which they do not do. AND THAT MY FRIENDS IS WHERE THE PROBLEM IS. THIS IS BAD FOR BUSINESS AND BAD FOR EVERYONE INVOLVED IN THE TRANSACTION. I don't know where £25 comes from. It is wholly unreasonable.

Nevica

glider3560

Who is the insurance company?

nevica

It is not my intention to bring this company down by naming them but I want to expose bad business practice and eventually get the law changed as stated above by pedro.