Extra Charges on car Insurance

Ian59

I have recently had to amend the policies on both my cars, different insurers, different reasons, in one case adding my son for a week should have cost £15.90, it actually cost £35.90 in the other case I fitted a tow bar (notifiable modification) zero cost for the tow bar but cost to me £20.
In both cases the reason was the same ADMIN CHARGE, it appears the insurers are desperate to claw back some of the money they are having to give away to be competitive.
Moral of the story, if you are fitting a towbar, have it done at renewal time and declare the modification on the renewal. If you are adding someone to the policy it is often the same cost for a week as a day and if you are likely to do it more than a couple of times then it is probably cheaper to add them for the entire period!

InsideInsurance

In some respects you should count yourself lucky that the admin fee is only £20. There are many out there charging a much higher fee and yes, it is in response to looking at ways to keep initial prices as low as possible.

Certainly if you are likely to be making mid term adjustments then factor in each insurers admin fees in your decision on who will provide best value to you.

forgotmyname

I did ask my insurers about fitting a towbar and they said i didnt need to notify them.

You should have phoned and asked that before making changes to the policy.

stugib

Ian59 wrote: »

it appears the insurers are desperate to claw back some of the money they are having to give away to be competitive.

Bet you didn't complain when you were shopping round trying to get the cheapest price!

dunstonh

In both cases the reason was the same ADMIN CHARGE, it appears the insurers are desperate to claw back some of the money they are having to give away to be competitive.

Partly correct.

Comparison sites with their focus on premium means some insurers have started charging explicitly for services that used to be paid for within the annual premium. It allows them to knock the premium down and move up the list.

That said, there is general move towards explicit charging across the board and it is generally favoured by the regulator and consumer groups as being more fair. Indeed, whole sections of financial services will have to be explicitly charged next by 2013 with others following in 2014. Insurance is not yet included in the mandatory changes but many suspect it is just a matter of time.