MSE News: Beware sky-high insurance change fees

Steve1981

the original article is either unclear or incorrect?

it states that churchill and direct line do not charege for changing the name of a driver on the policy. is this changing a driver (ie adding someone else on to the policy) or changing the name of a driver (ie partner becomes wife and changes surname)?

a change of driver with both companies will result in an ammendment fee of £15.90 as per T&C's. just felt that it needed to be a bit clearer as adding drivers is more common than a name change

mmillie

A year ago I called the RAC to get a figure for cancelling my car insurance when I moved house and they wanted to up my premium a lot. On the phone they told me it would cost about £30 admin fee to cancel my policy, plus £20 I would loose for legal cover (which is apparently not part of the refundable insurance). When it came to it, they charged £85 in total. I complained and they told me that I must have misheard on the phone. They were completely unsympathetic. Needless to say, I will never go to them for car insurance again, and didn't renew my breakdown cover with them.

Martin

dunstonh

mmillie wrote: »

A year ago I called the RAC to get a figure for cancelling my car insurance when I moved house and they wanted to up my premium a lot. On the phone they told me it would cost about £30 admin fee to cancel my policy, plus £20 I would loose for legal cover (which is apparently not part of the refundable insurance). When it came to it, they charged £85 in total. I complained and they told me that I must have misheard on the phone. They were completely unsympathetic. Needless to say, I will never go to them for car insurance again, and didn't renew my breakdown cover with them.

Martin

See, i dont get why you are against them.

They clearly publish their charges. You knew about them when you bought it. They are priced under the typical £50 mark and many addons are non-refundable. The only reason you wouldnt know about these charges is if you didnt bother to read the bit on charges. So, why blame them?

JimmyTheWig

dunstonh wrote: »

See, i dont get why you are against them.

Because they told him one thing and then did something else.

Arg

dunstonh wrote: »

See, i dont get why you are against them.

They clearly publish their charges. You knew about them when you bought it. They are priced under the typical £50 mark and many addons are non-refundable. The only reason you wouldnt know about these charges is if you didnt bother to read the bit on charges. So, why blame them?

Bamboozling the public with 101 clauses in the terms and conditions* and overcharging for little are what's wrong with it.

* Some companies don't even give you the full T&Cs until after you've bought insurance and want to charge if you don't agree with them.

wozearly

dunstonh wrote: »

They clearly publish their charges. You knew about them when you bought it. They are priced under the typical £50 mark and many addons are non-refundable.

My personal gripe with the approach to charging admin fees is that its a form of confusion marketing, because it disguises the true cost and applies it in a way that customers can't fully predict. Stripping the costs out of a headline price makes it appear lower and more competitive, but mandating that customers provide up to date information and then charging them for complying with the contractual terms is cheeky, to say the least (even if the charges are in the contract).

Yes, its actually mildly beneficial to the majority of people who don't require changing their policy in any way, which is its one saving grace.

However, when MSE put the question to the community about whether they preferred choice and complexity with energy tariffs, as opposed to clarity and simplicity (accepting this would be a slightly higher price), the poll came down overwhelmingly in favour of paying a bit extra but getting clarity and simplicity about costs...and this was a poll of MSE users!

Frankly, I'd be surprised if the majority of people felt differently on this issue. That's a good reason to stand against admin fees as far as I'm concerned.

dunstonh

Bamboozling the public with 101 clauses in the terms and conditions* and overcharging for little are what's wrong with it.

Last time i got a quote, the main charges were disclosed before I pressed the submit button. Not hidden away in small print. Of course you have to read what is written but then those that dont usually blame it on "small print".

I would agree that those that dont show them pre-purchase shouldnt be allowed to charge them.

However, when MSE put the question to the community about whether they preferred choice and complexity with energy tariffs, as opposed to clarity and simplicity (accepting this would be a slightly higher price), the poll came down overwhelmingly in favour of paying a bit extra but getting clarity and simplicity about costs...and this was a poll of MSE users!

I can understand that but then the insurance side has mainly happened due to quote comparison sites which focus on premium and not quality or simplicity. It is a race to the bottom.

komera

I tried to cancel with Kwik Fit = £50 charge. Reason for wanting to quite was that they charged me £35 extra because my previous insurer's no claims bonus letter only stated 7 years ( I have 10), and I had put 9+ on the online form. New wheeze to get more out of us???

I was mightily annoyed I can tell you

raskazz

komera wrote: »

I tried to cancel with Kwik Fit = £50 charge. Reason for wanting to quite was that they charged me £35 extra because my previous insurer's no claims bonus letter only stated 7 years ( I have 10), and I had put 9+ on the online form. New wheeze to get more out of us???

Not really. You said 9+ but can only evidence 7. You need to obtain proof of 9+ years from the previous insurer so that you can evidence 9+ years.

dunstonh

I tried to cancel with Kwik Fit = £50 charge. Reason for wanting to quite was that they charged me £35 extra because my previous insurer's no claims bonus letter only stated 7 years ( I have 10), and I had put 9+ on the online form. New wheeze to get more out of us???

I was mightily annoyed I can tell you

Not a new wheeze. You gave incorrect information on your application. If you have records of your NCD going back further then providers will accept that. However, think of it logically. You said you had 9+ but could only prove 7 years. So, what is the new insurer to do?

The best thing to do is keep copies of each renewal. Provide your own audit trail. You need to do this if you DIY insurance.