Sheila's Wheels Rip Off

dantheman2010

We have just changed bank accounts and have changed the direct debits with about 12 companies for various bills/utilities and only Sheilas Wheels wanted an "admin fee" for this.

I understand they can charge if they wish, but £26.00 charge to change the direct debit on a £30 a month car insurance is ridiculous.

If you split that £26 over the 12 months the car insurance is over they no longer become the cheapest insurers on the comparison websites.

Needless to say we will not be renewing our insurances with Sheila's Wheels when it expires - I just think if other companies such as Tesco, Aviva, Eon, Sky, Council Tax, C&G, Orange, Talk Talk dont charge a penny but Sheila's Wheels do they just try and shaft you for every penny every other which way to try and make up for the fact you are getting cheap insurance.

Not a good way to keep customers.

Rant over!

InsideInsurance

Did your new bank not have an account opening service? When I switched accounts last the bank managed updating all the direct debits without me having to do anything.

mikey72

So you now get charged to pay them?
Class company.

(They would have no where near the cheapest at renewal though)

dantheman2010

The bank didnt offer it, it was my OH's one of two direct debits, it was easy for me to do all mine online - she only had that and orange and they wanted to charge, couldnt believe it.

dunstonh

I understand they can charge if they wish, but £26.00 charge to change the direct debit on a £30 a month car insurance is ridiculous.

Not really. Its a flat charge that is the same irrespective of premium. That is the most fair method as the work is the same whether your premium is £30pm or £300pm.

Needless to say we will not be renewing our insurances with Sheila's Wheels when it expires - I just think if other companies such as Tesco, Aviva, Eon, Sky, Council Tax, C&G, Orange, Talk Talk dont charge a penny but Sheila's Wheels do they just try and shaft you for every penny every other which way to try and make up for the fact you are getting cheap insurance.

You will find most now have admin charges. Its what consumers want.

dantheman2010

Erm how is a charge what consumers want??

InsideInsurance

the consumer wants ultra cheap premiums at inception and the consequences is that profits must thus be made by secondary incomes such as admin fees or selling your details to claims management companies etc

dunstonh

When the cost of admin is factored into the premium, everyone pays more and they company slips down the quote comparison site list. By stripping admin charges out (along with other things) they can keep the base premium cheap and appear higher up the comparison list.

The FSA also prefer explicit charging as well. So, an admin charge is fairer.

mikey72

InsideInsurance wrote: »

the consumer wants ultra cheap premiums at inception and the consequences is that profits must thus be made by secondary incomes such as admin fees or selling your details to claims management companies etc

I don't kow that the consumer does.

Most of them want a fair service for a fair premium, if you read the questions on here about insurance company recomendations.

The problem is the insurance companies scrambling to the top of go compare etc, and desperately touting for any business at any cost.

They have to be one of the worst example of any business practice in the uk, even double glazing salesmen have more scruples.

Mr_K

dunstonh wrote: »

You will find most now have admin charges. Its what consumers want.

Yeah, I love admin charges, can't get enough of them.

InsideInsurance

mikey72 wrote: »

Most of them want a fair service for a fair premium

I havent seen the statistic in the last 2 years but certainly back then over 95% of sales from the likes of Confused.com came from the top 3 cheapest listed providers.

Even the likes of the Post Office which sell on the basis of being an ethical provider only manage anything close to a reasonable conversion rate when they are in the top 3.

This also applied to Home which is a much more complex product with a massively greater differential between different policies.


Whilst there are some people who are becoming more savvy, mainly those that have had their fingers burnt already, the vast vast majority want the lowest price possible