Car insurance renewal fee

azsumbulgar4e

hi,
on my car insurance renewal quote ,there's a renewal fee of £50.I've not seen that before,is that the new way of marketing,so it looks like a lower quote?it's tricky,because you would see it on a letter ,like in my case,but you may not see it if you're on a compare web site.It'll give you just the quote minus that fee...tz,tz,tz!

dunstonh

Do you use a broker? Is it a broker fee?

Buzby

They are having to be upfront on the charges they levy, previously I was inbuilt into the premium. That said, £50 is outrageous, £30 more nearer te average and even then this is negotiable.

azsumbulgar4e

no,it's not via a broker..
i rang them up and ask them if that fee could be lifted and they said no,it's an admin fee...
it's with "1st central" and it says "renewal fee" on the breakdown...
I have a feeling they do it,so they keep themselves on top of compare web sites searches for lowest premium...just like a fishing scam

dunstonh

I have a feeling they do it,so they keep themselves on top of compare web sites searches for lowest premium...just like a fishing scam

Actually, it could very well be on of the most fair ways of doing it. Whole sections of financial services are being required to unbundle charges and show them explicitly so you know who is getting what and what for. Having the administration disclosed seperatly from the premium could well benefit some people (although it would hurt others. Typically those with low premiums who rely on the cross subsidy of those higher premium payers).

azsumbulgar4e

it could be!
that's why i came on the forum to see what everyone else thought.Thanks!

vikinggreen

Resurrecting this thread (although it isn't that cobwebby) because we have just had exactly the same thing from 1st Central.

Insurance £133, renewal fee £50. It seems a bit mad to me that they don't have a lower rate for people with low premiums. Needless to say there are cheaper quotes out there, although the nearest I could get was actually £148, so the additional £50 fee has effectively cost them our business. If the fee had only been £25 I probably wouldn't have bothered to switch because of the added hassle.

The only good news is that the policy isn't automatically renewed, so at least it isn't a trap for the unwary.