Change of Address Fee - Rip Off - Views Please

losgiganteskid

dunstonh wrote: »

Who is going to pay the staff whose time you are using up if you are not going to?

Exactly the same staff that spend time on the phone when I ask for a new business quote - for which of course I pay NOTHING !!

lisyloo

for which of course I pay NOTHING !!

The cost of sales e.g. giving quotes, advertising is not explicitly charged for.
Of course we all pay a share in our premiums as they are a business not a charity.

Amendments are explicity charged for and this information is available in your policy up front.
You can check this and decline the policy if you think their charges are unfair, but it's very clear that whether a cost is explicit or included the costs need to be paid for one way or another.
If you did find an insurer that included this then they would still have to included the overall costs in your premium (for this reason they might not be competitive hence they strip it out).
They all want to be the cheapest on comparison site, so they all strip out the maximum possible a bit like "no frills" airlines.
If you don't like it then don't buy a "no frills" policy, but of course most people buy the cheapest without reading their policy on what the fees are.
Personally I think £26 is very fair.

dunstonh

losgiganteskid wrote: »

Exactly the same staff that spend time on the phone when I ask for a new business quote - for which of course I pay NOTHING !!

You pay the insurance premium but that will cover the cost of setting up.

The provider has a choice to either include the cost of potential future servicing in that initial premium (so you pay whether you need servicing or not) or reduce the premium and charge when you need servicing.

In these days where some companies try to lop things off to appear higher up the quote comparison site, admin fees lopped off the annual premium are common. You can still find those that include it in the annual premium though if you prefer those.


If 1 in 4 calls coming in is servicing then you need 25% extra staff to cater for them. Then add in the extra supervisors and managers that brings with it as well as extra workspace, computers, IT staff etc etc.

catfish50

losgiganteskid wrote: »

Exactly the same staff that spend time on the phone when I ask for a new business quote - for which of course I pay NOTHING !!

Until you change your address.

The overheads that can't really be charged for, such as quotes for new business, get covered by adding them to the charges for things that CAN be charged for -- such as change of address.

lisyloo

The overheads that can't really be charged for, such as quotes for new business, get covered by adding them to the charges for things that CAN be charged for -- such as change of address.

I don't think that would be a very good business model.
What if no-one changed their address.
Unlikely perhaps, but it's still a risky model to recoup revenue.
I think they would include the costs of sale in the initial premium and amendements are fairly reflected in the costs they charge.

Did you read the list I put up?

Do you accept that there are other costs above the 5 mins e.g. IT backup procedures, data protection procedures etc.
Do you accept there are other costs over and above the 5 minutes work that you see?
There are a lot of costs to running a business (like security, backups, cleaning, hygiene, healt, safety, training etc.) which I have tried to explain (and it's almost certainly not an exhaustive list).
As a starting point, do you agree that these thing are legally required and do cost money and do have to paid for one way or another?

losgiganteskid

dunstonh wrote: »

You pay the insurance premium but that will cover the cost of setting up.

But given that new business telephone conversion rates may be as low as 60% - there are tens of thousands of quotes given out each year which are not competitive enough to secure the business !! so my point is that if you phone a company for a quote and its not competitive and you insure elsewhere YOU don't pay for the service, neither do you pay for the list of office outgoings as listed by another poster. You asked the question "Who is going to pay the staff whose time you are using up if you are not going to ?" I merely replied the same staff that give out the quotes !! - you and I both know if Insurers thought they could charge for giving out telephone quotations - they would - they can't so they don't, it's as simple as that.

As for the FOS and your comment about their acceptance of up to £50 - do you say your prayers to the FOS each night before you climb into bed ??

catfish50

lisyloo wrote: »

I don't think that would be a very good business model.
What if no-one changed their address.

Change of address is not the only thing that can be charged for.

lisyloo

Change of address is not the only thing that can be charged for.

I agree.
What makes you think they are charging you for other costs (like quotes) in the £26 fee?
Do you have anything that would amount to evidence?
If you do have real evidence that they are doing this then I would fully support you in making a complaint.

Or (and this is a genuine question) is it a case that you have no evidence, have not looked into the costs and just want something to pin the blame on.
Be honest, if you have the evidence I would fully support you.

dunstonh

As for the FOS and your comment about their acceptance of up to £50 - do you say your prayers to the FOS each night before you climb into bed ??

No. I read the FOS publications to get an idea of their train of thought to make sure I remain complaint. As do many prudent business owners who are regulated by the FSA.

It also helps consumers know what the FOS is saying on complaints as they can see if they are likely to be successful or not.

catfish50

lisyloo wrote: »

I agree.
What makes you think they are charging you for other costs (like quotes) in the £26 fee?
Do you have anything that would amount to evidence?
If you do have real evidence that they are doing this then I would fully support you in making a complaint.

Kind of you to offer but it's not me they're charging, it's the OP. And to answer your question, it stands to reason that all overheads have to be covered by charges, so the overheads which can't be charged to clients directly get included in charges for overheads which CAN be charged to clients.

Or (and this is a genuine question) is it a case that you have no evidence, have not looked into the costs and just want something to pin the blame on.
Be honest, if you have the evidence I would fully support you.

I take that very kindly. I'll call you the next time I need support.