Car Insurance Admin Fee?

L123

Hi,

Can someone please advise me whether an insurance company (Sheila’s Wheels) can charge a fee just to change my address on their system. I’ve moved house to a quiet area (if not quieter then where I was before), my car is still parked on a private driveway off the street and I have had no change in any nother circumstances. I wouldn’t mind too much if the fee was small but it’s £40!



Thank you.

latecomer

yes - read the terms and conditions of your insurance.

PS might have been better posted on the insurance boards

Rafter

Afraid so - reward the company involved by not renewing with them and telling them that their outrageous admin charges are the reason!

When I moved had the same problem with one insurer and the other one LV= (a mutual) made no charge at all.

Your only avenue would be to go to the small claims court and claim that the term is unfair and the cost disproportionate to the insurers costs for changing an address on a system and sending a letter - but I'm not sure you will get far and it will probably cost you a lot more than £40.

R.

dunstonh

an someone please advise me whether an insurance company (Sheila’s Wheels) can charge a fee just to change my address on their system.

Yes they can.

I wouldn’t mind too much if the fee was small but it’s £40!

FOS publications have shown the FOS have accepted £50 as being justifiable. £40 is not bad.

However, was £40 just the admin fee or also the fee and premium difference (in case you are rounding your figure).

A lot of the companies that appear near the top of comparison sites strip out a number of things to allow them to give a cheaper premium. Explicitly charging for admin tasks and cancellation is one them. As it happens, for most people, explicit charging of certain things and lowering the premium is better value for money as it means you only pay for your own administration and the bulk caused by others.

SliAbhaile

Yup. I gave up using Less>Than because they charged me £30 every time I told them I was taking the car abroad. I found many other providers willing to offer foreign use for free.

Do the same here: vote with your feet.

oldfella

if its in the T&Cs then yes

last time this happened to me I rang my insurance provider and politely said they could remove the charge or expect me not to renew

they removed the charge

L123

£40 just seems so excessive, especially when I've never had a claim. Joke. I'll be voting with my feet. Thanks all for your help.

dunstonh

L123 wrote: »

£40 just seems so excessive, especially when I've never had a claim. Joke. I'll be voting with my feet. Thanks all for your help.

Just remember to find the balance. Those with no admin fees have higher annual premiums as the administration costs are factored into the annual premium. Explicit fees can be fairer than implicit.

£40 just seems so excessive

To be clear. You have not been charged £40 for admin costs. esure admin charge is £26. Anything above that will be risk premium related.

£26 is very fair. They have to find a balance between the person that phones up and has major issues and the person that phones up with a simple issue. There is still an element of cross subsidy here as both will be charged £26.

Lord_Baltimore

I'd be interested to know when you were first made aware of this "admin fee" by your insurer? One possibility to explore is if you were made aware of the fees after you had begun your insurance contract with them (by which time you would incur a penalty if you decided not to accept their terms).

Regardless of this, these fees are disproportionate and disingenuous. If enough potential customers were to collectively reject 'admin fees' instead of rolling over and taking them up the jacksy, Companies might think twice about imposing them.

Sheila's Wheels is on my avoid list from now on. If enough people oppose this blatant means of extracting cash from the hapless consumer, someone will provide a service without adding supplementary charges at the drop of a hat.

Slowhand

Lord_Baltimore wrote: »

I'd be interested to know when you were first made aware of this "admin fee" by your insurer? One possibility to explore is if you were made aware of the fees after you had begun your insurance contract with them (by which time you would incur a penalty if you decided not to accept their terms).

Regardless of this, these fees are disproportionate and disingenuous. If enough potential customers were to collectively reject 'admin fees' instead of rolling over and taking them up the jacksy, Companies might think twice about imposing them.

Sheila's Wheels is on my avoid list from now on. If enough people oppose this blatant means of extracting cash from the hapless consumer, someone will provide a service without adding supplementary charges at the drop of a hat.

Please give MSE a list of Insurance Companies that do not charge admin fees for processing changes to a policy?

Lord_Baltimore

Slowhand wrote: »

Please give MSE a list of Insurance Companies that do not charge admin fees for processing changes to a policy?

Ah, you're from the roll-over-up-the-jacksy-group then? I'm not saying that they don't do it, I'm saying it's time to do something about it. Doesn't look like you'll be much help.