Changing Address with car insurance firms

glider3560

If you named them, I was going to check out what the policy booklet says about admin charges.

dunstonh

They charge £25 which will require 5 minutes work in front of a computer.

How much did it cost to train the people to use the computer and make them compliant?
How much did the computers cost?
How much did the software cost?
How much does the cost of running the computers cost?
How much does upgrading the computers and software cost?
How much do the IT guys cost?
How much do their supervisors cost?
How much does the compliance team cost?
How much does the building cost?
How much do the people answering the phone cost?
etc etc

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

£25 isnt much unless you are still living in 1980.

2. In their attempt to have the cheapest premiums they have to charge large administration fees to stay in business.

Almost right. They choose not to put the cost of administration for amendments and servicing into the main premium. So, they have a lower premium and only charge those that use the services during the year. So, most people are better off and only those that use the serviceline pay for it.

That is actually very fair and something the Govt has been encouraging across all areas of financial services.

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.

How is most people being better off and only those being charged for work done detrimental?

In this day and age of computers it is no work on their part to change a few lines on a screen.

The actual transaction may not cost much but the cost involved in putting everything in place to allow that transaction costs more. Plus, they are entitled to profit as well.

It is wholly unreasonable.

What part of people paying lower premiums and people being charged for work they create is unreasonable?

pedro123456

Forgot one -How much do they pay in commissions, to Brokers and IFA ? :rotfl::rotfl::rotfl:

dacouch

For car Insurance it is about 9% Pedro

nevica

dunstonh wrote: »

How much did it cost to train the people to use the computer and make them compliant?
How much did the computers cost?
How much did the software cost?
How much does the cost of running the computers cost?
How much does upgrading the computers and software cost?
How much do the IT guys cost?
How much do their supervisors cost?
How much does the compliance team cost?
How much does the building cost?
How much do the people answering the phone cost?
etc etc
£25 isnt much unless you are still living in 1980.

Hello Dunstonh,

Thanks for your comments. These are very good comments when considering costs of a company but you completely miss the point I am making. Anybody can change an address on a computer therefore a school leaver at 16 can do this. It is not a complicated job to change an address. £25 is a large amount even in 2009 and I disagree with you when you say £25 is not. To charge so much for so little work is ridiculous. Have I not already paid my yearly premium which should cover costs of administration. Multiply this by number of people who pay the company for policies and dont claim then this adds up for the coffers of the company.

We can go on arguing until kingdom come but it does not remove the fact that a company can put in their small print large fees for doing very little work. This is unethical and should be changed by law. There is no difference between the banks behaviours in charging large overdraft fees to raise money.

I put to you that the reason for these practices by the banks and insurance companies is to make quick money. Has not this been shown to be motivated by greed and has clearly been brought out into the open over the last few years. We are going through a serious financial depression caused by such practices. ie quick money which has at its roots greed.

A solid financial company will survive if it provides a fair, just and ethical service for its customers. By putting statements in its small print (they are in fact loopholes) they shoot themselves in the foot. By having service centres on the other side of the world reduces the confidence of customers. By treating its customers by applying rules they have put in their small print does not make it right and just.

I put it to you again that these practices are unethical and should be changed by law.

Nevica

dunstonh

Anybody can change an address on a computer therefore a school leaver at 16 can do this.

No they cant. Insurance companies are regulated and the staff answering the phone have to be trained in what they can and cant say and you have supervisors monitoring their calls (not every single one but they sample). Quite a lot of them have to sit at least one of the financial services exams.

Have I not already paid my yearly premium which should cover costs of administration.

no you havent. As has been said a few times on the thread already, a number of insurance companies reduced their annual premiums and put charges on services instead. You can get companies that still include it in the main premium and charge nothing for servicing but you tend to find them more expensive.

So, which do you prefer, one that charges say £300 a year and has no service charges or one that charges £250 a year and has a £25 service charge only when you make an amendment?

This is unethical and should be changed by law.

So, you think that increasing everyone's premium to cover a service that most people will not use is ethical?

raskazz

Nevica - you need to realise that the transaction has a small marginal cost but that does not mean that the average cost of one transaction is also small.

pedro123456

Nevica

You talk of £25 charge being unethical, but that is only one aspect of concern, of course it is relevant how much in one sense but not in another, in that they could make it £50, or £100 and who is to argue.
The IC set their own charges stick it in their policy booklet and that’s that, it part of T&C and legitimate
.
The IC imposes their own T&C’s, their own definitions, and make judgements accordingly.:mad:

It’s a bit like them being the Law makers, Jury & Judge, sadly our premiums have paid for the IC’s to create loopholes and get out clauses to maintain their profits and feed their greed.

The IC’s should be in the dock having sentences passed on them

glider3560

pedro123456 wrote: »

Nevica

You talk of £25 charge being unethical, but that is only one aspect of concern, of course it is relevant how much in one sense but not in another, in that they could make it £50, or £100 and who is to argue.
The IC set their own charges stick it in their policy booklet and that’s that, it part of T&C and legitimate
.
The IC imposes their own T&C’s, their own definitions, and make judgements accordingly.:mad:

You have the opportunity to read the policy booklet BEFORE you buy the policy. If you don't like it, go somewhere else.

And before you say anything, yes there are companies who don't have admin fees for policy amendments. Zurich are one of these - but you'll find the costs have been factored into the premium anyway - so everyone pays more for the work required for a minority of customers.

pedro123456

Oh that’s it then, read the policy booklet? And everything is ok? :undecided

I like simple solutions like that


Thanks for sharing