Insurance Fee Rip Off

Sambidges

Hi
I have insured my car through the Budget website and they gave me a very good price for insuring my Rover 214 in January. However I have today changed cars to a Hyundai Atoz+. When I notified Budget of the amendment to my policy not only was I surprised to hear the revised quote is nearly the same price as the Rover but they have charged me an admin fee of £25.00! Is this normal practice?

gazza975526570

Yup.

Completely normal and completely legal.

TBH some chages are much more expensive than this

marcellep

Yeah most insurers set out this fee for ammending your policy in any way. I worked for a insurer for years and we charged from £5 to £35 depending on the change.

We had to tell people at the point of sale they would be subject to admin charges should they change there policy. I assume that you where told this or and you have a copy of the T&C which should and need to detail this.

Hope that helps

Astaroth

It is common practice and can be up to (and above) £65 - more if you add broker fees on top of insurance fees.

There is an unsurprising correlation between the general price of the insurer and the general price of fees.

These are nothing new but until the FSA ICOB rules came into force at the start of 2005 insurers didnt have to seperate out fees, taxes and premium and therefore you would have just been given a single additional cost for the amendment and been none the wiser that part of that figure was a fee. Now insurers have to seperate out the parts.

Sambidges

Guess I will have to just lump it then and feel lucky it wasn't £65!
Thanks to everyone for their feedback.