Car Insurance Admiral - Frustrations

BEDDAUBOY

Hi all,
My last car insurance with Admiral ended at the end ofJune. Premium £260. We had a berevement in the family, I didn't have my eye on the ball, missed their renewal emails, and they automatically renewed. Premium £383. I have now searched on line, and via Quidco, found an insurance with Aviva. Premium £253. Cashback £70. Final Premium £180 :-))

I phoned Admiral to explain the situation, to thank them for their cover, to see if they would match, and if not to cancel. Firstly, I was kept waiting on the phone for at least 15 mins before finally getting through, then I'm told their systems are down and they can't deal with me today. Why, oh why, can't they change their waiting music/message to indicate that. Secondly the very pleasant young lady informed me that when they are able to deal with me they will charge me a £49 admin fee to cancel the policy! That to me is day light robbery. I don't even remember explicitly agreeing to the automatic renewal in the first place. It's the £49 that winds me up - How can they possibly justify that?

Anyway I'm not letting it lie. I'll take it as far as I can. So I would appreciate any comments and advice you have to offer chums.

InsideInsurance

Do a search on here and you will find that the regulators and ombudsman actively support both cancellation fees and automatic renewals.

On the basis you forgot about it you really have to praise the auto-renewal process rather than condemn it as you would otherwise have been driving without insurance!!

With the premium difference it may be worth while cancelling and paying the fee anyway. Be aware you will be agreeing to exactly the same with Aviva re auto renewals and cancellation fees!

BEDDAUBOY

I see your point that it does avoid people driving unknowingly without insurance should they not remember to renew. I do feel that the insurers abuse this option though by significantly upping the premium. Also, I think that an 'admin' charge for the cancellation, in less than one month of the policy starting, of £49 is way too much. What actual cost is there to an insurer. The cost of a call center employee for the time taken to cancel the policy falls way short of that. Actual costs to them should be covered I agree, but to make it punitive and as a way to force people to stay is just wrong.

InsideInsurance

The cost depend on a whole host of factors. A previous client did a cost per acquisition model in preparation of defending any complaints and NB came out at circa £150 and Renewal at around £75. Therefore a cancellation fee of £50 is less than either of these and factors in the fact most cancellations occur earlier in the policy lifecycle and so less time to earn.

The cost to an insurer isnt simply the call centre agent, a few pieces of paper and a few database fees, a large proportion of it is in marketing be that fees to affiliates/ distributors like Aggregators, brokers etc or yellow pages adverts etc. Add to that for that 1 call centre agent you have part of a team manager, site manager, regional manager, trainer, compliance/ audit, finance, regulatory risk, underwriter, pricing analyst, HR, payroll etc

rs65

BEDDAUBOY wrote: »

I do feel that the insurers abuse this option though by significantly upping the premium.

They invite renewal - you don't have to accept it.

As has been said, they have done you a favour. If you had an accident in the last month you wouldn't complain at all. Also, if they hadn't renewed automatically, you could've been picked up on an ANPR camera and be paying a fee to get your car out of a police pound.