MSE News: Beware sky-high insurance change fees

dacouch

stugib wrote: »

Not an insurance industry analyst then...

With a name like that, I reckon he's a spy for consumer action group

weejonnie

NCD proof is getting very complex with some insurers offering enhanced discounts for 9+ years whilst others only confirm 4 years on their renewal letter.

The industry should get together and agree on disclosing the number of years up to 9 even if the step back scale after 4 years is the same.

(The other way you can get round it is to use an insurance broker who will keep track of proof of no claims bonus as they look after your car insurance.)

Quentin

weejonnie wrote: »

(The other way you can get round it is to use an insurance broker who will keep track of proof of no claims bonus as they look after your car insurance.)

No need for brokers - keep your own paper trail of NCD if you shop around each year.

You ought to anyway, not just for NCD purposes.....a claim can turn up after 6 years, and you need to know which insurer covered you at the time of a claim!

dawnbird

I am with Hastings car insurance and relently swapped cars with my daughter, this cost £35 to change details plus the extra to cover the car, I then decided to buy a different car within a month and phoned to change my details again they charged another £35 I questioned this and its their standard fee, I will be sure to ask when taking out car insurance in the future about these hidden costs. My daughters insurance company Admiral did not charge and her premiums were reduced. I think these companies are over charging and making alot of money on any kind of policy wording change along with high insurance premiums in the first place

weejonnie

Hooloovoo wrote: »

That would depend on the insurer.

I changed my car the other day and when I phoned up IAM Surety (run by Adelaide Insurance) they spelt out the charges - a 5% policy uplift due to it being a newer car (£15) and £10 admin fee making £25 total.

Any insurance provider must split all elements of any quotation given to a customer. Thus at renewal they must state : £x premium for policy, £y premium for legal expenses £z administration fee.

(That leads on to mis-selling of policy add-ons which the FSA are looking at)

Lala69

JimmyTheWig wrote: »

Also worth noting that the Admiral group always tend to be significantly cheaper for car insurance (for me, at least).

Changed cars at the weekend. 6 months left on the policy. Been with them for a few years (they've matched my best quote [with their sister companies] at renewal).

I have been with Admiral on a multi-car policy for a year. Their renewal came through at £633 at the same time an automatic reminder from moneysupermarket came through with new quotes for this year, listing Admiral as the cheapest provider... at £457 for the same cover! A swift phone call to Admiral had them match my renewal price to the 'new customer' price from msm.

magicrichard5

Thanks for the info MSE. Have always thought this would be useful information for the comparison sites to compile..

Alan_Boorman

Wanted to add my daughter to wife's car policy while her car had engine repairs. Cost £20 per week plus £12 admin fee = £52 for 2 weeks. Next day realised this is 30% of my annual premium for two drivers so got quote for adding her for the whole year - £51. Phoned complaints dept to suggest there may have been an element of misselling. Result: daughter added for whole year and full £52 refunded. :j

Steve1981

Alan_Boorman wrote: »

Wanted to add my daughter to wife's car policy while her car had engine repairs. Cost £20 per week plus £12 admin fee = £52 for 2 weeks. Next day realised this is 30% of my annual premium for two drivers so got quote for adding her for the whole year - £51. Phoned complaints dept to suggest there may have been an element of misselling. Result: daughter added for whole year and full £52 refunded. :j

personally i would disagree that you had been missold to. if you only asked for a price for 2 weeks why would you expect the consultant to give you a price for a year? the likelihood is the system wouldn't give this price unless they looked.

consultant is stuck in a difficult position, they aren't allowed to advise you but at the same time treating customers fairly needs to be adhered to aswell.

i'd expect maybe more probing from the consultant around the chances of your daughter needing to go on the policy again during the rest of the year and dependant on that conversation would depend if a price was given for 12 months.

i really cant see how you can claim miss-selling when you came away with exactly what you phoned and asked for - if you dont think of other options and the consultant is not allowed to advise i dont see what other outcome there couldd have been

weejonnie

Of course if you insured through and popped in to see your local insurance broker they would have advised you of the alternative choices as a matter of course.

It is because they can - it's called customer service.