£14.50 admin fee to change address with top insurer!!!

FinancialConvert

As I'm moving house tomorrow, I just phoned my car insurance provider to notify them. They did a check and told me that there would be no difference in premiums as the new address is very nearby and the premiums are the same. Excellent.

Then....the person at the other end of the phone informed that there would however, be an "administration fee" of £14.50 purely to change my address. When I disputed it, she informed that it was because they had to "send out new documents".

I told her that I'd been on the phone to various companies for two days to inform them of address changes and NO other company had issued me with a tokenistic administration fee. I also said that I was very unhappy and disappointed.

She put me on hold to speak to her supervisor. When she came back, she said that she would waiver it this once as a "good will gesture" but if I wanted to make any changes in the future, then there would be a charge of £14.50.

By disputing the charge and using saynoto0870 to phone a landline rather than pay their premium phone call rates, I just saved myself approximately £20 in five minutes.

I wonder how many other insurance companies charge these administration fees? It makes me feel like transferring to another insurance provider.

welshmoneylover

I think this is becoming more and more common as companies try to maximise profits. Another thing I've seen in the small print is that if you cancel a policy, they will also charge £10 just for the admin cost of doing so!

dogbot

Most insurers charge admin fees. They are in the policy. If you had read your policy you would have known about them.

You are using an additional service and the company is perfectly within their rights to charge for that. Indeed insurers can charge anything up to about £50.

_Andy_

Why should they not? You agreed to the fees when you took up the product. If you didn't want an insurance product that charges for address changes then you could've chosen another provider (I assume you'd have been happy with a higher premium as a result).

losgiganteskid

It is annoying - but £14.50 is a very modest admin fee.

Motor Insurance is highly competitive these days so insurers prune their premiums to the bone in an attempt to secure the business, then when you are contracted - they've got cha !!

HannahIOW

I think the company I am with charges £20 for change of address

Quentin

FinancialConvert wrote: »

I wonder how many other insurance companies charge these administration fees? It makes me feel like transferring to another insurance provider.

As this £14.50 has sent you up the pole, I think you ought to find out the cost this "matter of principle" transfer would end up costing you before jumping ship, (in not getting a full pto-rata refund or extra charge if paying by instalments, paying the cancellation fee, not getting any NCD added for the current year, possible increase in premium, increase in future admin charges (as £14.50 is cheap these days), etc)!

luci

I also think £14.50 is cheap for an admin fee. The admin fees are clearly stated in the T&C's when you take out the policy. I can't remember how much mine is, but I do remember I checked at the time and accepted it.

glider3560

Remember that the £14.50 doesn't just cover the cost of "someone clicking a button". You have to take these into account (thanks to dustonh whose post I have borrowed here):

• The staff that sit there taking calls and doing the work
• The supervisors that have to monitor those staff
• The training teams that have to train the staff (including those that have to sit exams)
• The actuaries that have to factor in the cost of people making changes/cancellations
• The computer staff that have to install and maintain the computers as well as program them.
• The computers themselves are not free
• The storage of data which has to be indefinite now as well as recording of the call.
• The cost of FSA authorisation and regulation (getting out of control now)
• FSCS and FOS levies (which can be per head on certain staff and more work means more staff)
• The cost of the building and rates
• The cost of electricity
• Postage and related costs (not just stamp but also envelope and delivery to post office)
• Profit (they are not a charity and are expected to make a profit)

Plus if you've recently made a claim then the claims department need to be informed. They must find your paper file then send a letter to third parties, third party insurers, solicitors, courts etc.

Rolandtheroadie

My insurers are normally £15 for changes. I know this because it's in my terms and conditions.
When I cancelled motorbike insurance last year, I was hit with cancellation fees and also short term insurance fees (the policy was only 6 months old so the rate would be different apparently). It was also in my terms and conditions (I didnt read that one).

Check with any insurer in the future. £14.50 seems cheap.

jack_spratt_2

You all make me laugh :rotfl:

Its like turkeys voting for Christmas.

The only reason they make this charge is because they can get away with it and while you all take this attitude it will increase into other products and services just like we in Britain pay more for other things than other countries because they can get away with it

If companies cannot be up front enough and build in an amount to cover customer service element of the policy its a poor company .

Cancellation of a policy is different