Change of Address Fee - Rip Off - Views Please

lisyloo

Kind of you to offer but it's not me they're charging, it's the OP.

Apologies I got you mixed up.

it stands to reason that all overheads have to be covered by charges

I don't agree.
Why can't some overheads be covered by premiums rather than additional charges?
I don't actually know which way insurers do it, but I would think relying on additional charges would be quite a risk for their business.
If they know quotes cost approx £10 per policy taken out (including the costs for policies not taken) then surely the safest way is to add it onto the initial premium, other they risk some customers not doing anything that incurrs charges.
A proportion probably will, but it's a risk.
Do you know they don't add these costs to the premium?
Do you specifically know or have any evidence that they are adding costs to charges?

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

The OP (not you) did come on here asking for views.
Therefore I am assuming they really do want some facts/advice/views.
Of course they might be entrenched in their views and simply want support for them in their own mind, but I am not taking that cynical view. I am assuming they are open minded to some facts and some real facts have been offered such as:

1) There are FOS guidelines on the size of the fee, which affects their chances of winning a complaint (although they can cause financial pain in the cost of processing a complaint).
2) Admin fees are not legally the same as bank charges which are punitive and not related to costs.
3) Business face some costs beyond the front line work, some of which (like liability insurance and Health and safety) are legal requirements of operating a business in this country and cannot be avoided.

catfish50

lisyloo wrote: »

Apologies I got you mixed up.

No worries.

dizzie

Hi,

For my two penneth worth, I think it is sad to see all of these little surprises hidden in the small print of the T&Cs. I think that companies should have to give you a Key Facts document that clearly and prominently displays any extra fees.

As far as the additional work is concerned, I have mixed feelings. Part of your premium is used to woo new customers - and overheads in the "Attracting new business" departments are massive! I wonder, does anyone get frustrated like me? Does anyone notice that more and more these days, if you ring the sales helpline, there are always plenty of staff to answer your call in a jiffy... But try and call the customer services helpline for an existing customer, and nine times out of ten, you'll be sitting on hold listening to their "jingle" and "apologies for keeping you waiting" recordings for some 5 to 10 minutes?

...And then there are the discounts or cashback incentives for new customers. Yes, if you're a loyal customer then you are subsidising that too.

So whilst they are happy to factor costs into your premium so that they can woo everyone else...it seems that you cannot expect a little customer service for your own money.

Best thing to do in future - organise your insurance in advance, read the small print carefully and before your 7 day cooling off period...and if you don't like the charges buried in the small print...ring up and cancel it and tell-em why. If we all did this, perhaps they'd lose enough money to rethink their policies.

It amazes me that industries begin to introduce such tactics and then eventually everyone just seems to accept it as the norm. We really can be such pushovers.:(

TSx

Isn't this what everyone wanted? Every since the rise of the comparison site, insurers have driven premiums down to get market share.

Simple question - if an insurer came along who didn't charge admin fees for servicing, but charged a premium £15 higher a year to everyone (so appeared lower on comparison sites), would you take it up? Did you research which insurers charged admin fees before taking out your policy? Did you just go with the cheapest?

edited to add: Sales staff aren't always the same as service staff. It's completely different to bank charges as well, that is basically a computer printing and sending a letter. You have to remember as well, although your call is 5 minutes, what about the downtime when there is no-one coming through on the phone?

Andy_L

lisyloo wrote: »

Apologies I got you mixed up.

I don't agree.
Why can't some overheads be covered by premiums rather than additional charges?
I don't actually know which way insurers do it, but I would think relying on additional charges would be quite a risk for their business.
If they know quotes cost approx £10 per policy taken out (including the costs for policies not taken) then surely the safest way is to add it onto the initial premium, other they risk some customers not doing anything that incurrs charges.

The insurance business is all about statistics and probability, why wouldn't they apply the same techniques to their own business model? If they didn't have faith in them then they wouldn't be in insurance.
If they add them to the premium then, as said earlier, thye drop down the price comparison site's ranking & get less business becasue they appear more expensive

dizzie

TSx wrote: »

Simple question - if an insurer came along who didn't charge admin fees for servicing, but charged a premium £15 higher a year to everyone (so appeared lower on comparison sites), would you take it up?

Yes, actually...that's what I do these days...and I actually google the insurance firm on the internet to get other people's ratings/opinions on service before I consider using them...

The whole point of insurance is that it should deliver what you need it to deliver in the event that the worst happens. There is something about companies who are all battling for top spot on comparison tables but have to resort to hidden fees that really does not inspire me with absolute confidence!:)

dunstonh

Yes, actually...that's what I do these days...and I actually google the insurance firm on the internet to get other people's ratings/opinions on service before I consider using them...

Isnt it good that consumers have the choice of using providers that include it in the premium for you to pay every year and others that dont include it in the premium but charge when you use it.

here is something about companies who are all battling for top spot on comparison tables but have to resort to hidden fees that really does not inspire me with absolute confidence!

They are not hidden. They are in the published T&C, It's just that many people don't bother looking at them at the time of purchase. I do think that quote comparison sites should show more data and not just price and a couple of cost addons. However, the information is available at point of sale and when the docs arrive in the post where you asked to read them in case you wish to exercise your right to cancel.

mikey72

vusys1 wrote: »

Administration fee (for Amendment) £15 + IPT = £15.75 (wef 4/1/11 £15 + IPT at 6% = £15.90) Direct Line

lisyloo wrote: »

that.
You might actually have them over a barrell but do you think that's morally right?

Well, direct line think they cover all the overheads for less than £26.

So where the morals in overcharging against the t&c's they provided?

lisyloo

Well, direct line think they cover all the overheads for less than £26.

There could be genuine variations between companies.
For example with ebike I've often been charged nothing but no human was involved it was done automatically.

So where the morals in overcharging against the t&c's they provided?

If they are charging more than their Ts&Cs say then I agree a complaint should go in.
It's clearly wrong if a company states a certain fee and then charges something different.
I've said many posts abck I would support a complaint where there was evidence.
Is there any evidence that they are breaching Ts&Cs or guidelines?

lisyloo

Does anyone notice that more and more these days, if you ring the sales helpline, there are always plenty of staff to answer your call in a jiffy... But try and call the customer services helpline for an existing customer, and nine times out of ten, you'll be sitting on hold listening to their "jingle" and "apologies for keeping you waiting" recordings for some 5 to 10 minutes?

Yes dizzie I find it very frustrating.
I think it's just a fact of life.
Business (and staff) are motivated towards getting business. Staff are often incentivised and motivated with either bonuses or targets.
For customer services they want to minimse costs but meet legal requirements without losing too many customers.
The priorities in business these days are making profits and not meeting customer needs which is a means to an end.
I'm afraid I don't see that changing.
Personally I try to reward good comapnies with my business, but it is difficult with everything moving in that direction.
There are some genuinely good companies around.
Even with insurers I've had generally good service (although not had an accident recently).