Car Insurance Admin Fee?

redux

Lord_Baltimore wrote: »

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.

You didn't seem to be suggesting you need much help. You already said you had a list. Why insult someone who asks about it?

My insurer doesn't have admin fees for changes the customer makes online.

But if other insurers make an admin charge for something which uses their staff time I'm not surprised or outraged.

dunstonh

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.

And up goes the insurance premium if they do.

murphyg

Direct Line - my husband phoned to cancel his car insurance policy yesterday as he has sold the car and bought a motorbike, they have charged him £20.00 admin fee for the privilege. I wouldn't mind if he had changed his car but having sold it and not replacing it, this is just a complete and utter rip off.

Lord_Baltimore

redux wrote: »

You didn't seem to be suggesting you need much help. You already said you had a list. Why insult someone who asks about it?

My insurer doesn't have admin fees for changes the customer makes online.

But if other insurers make an admin charge for something which uses their staff time I'm not surprised or outraged.

It's not so much that I need help. It is a proven tactic that the more people who reject something, the more likely there is to be change.

Perhaps you might be kind enough to tell us who your insurer is so that others can benefit from your good fortune? An admin charge should be part of the premium already; I don't expect to pay extra to run their business for small changes in policy details.

Oh and it isn't insulting to reply appropriately to that which is intentionally facetious. Don't be naive.

dunstonh wrote: »

And up goes the insurance premium if they do.

And that's when market forces will come into play. If a Company charges more up front instead of sneaky back door charges like admin fees, it won't remain competitive for too long.

murphyg wrote: »

Direct Line - my husband phoned to cancel his car insurance policy yesterday as he has sold the car and bought a motorbike, they have charged him £20.00 admin fee for the privilege. I wouldn't mind if he had changed his car but having sold it and not replacing it, this is just a complete and utter rip off.

Yes, it is an utter ripoff. The list so far:

Sheila's Wheels
Direct Line

dunstonh

murphyg wrote: »

Direct Line - my husband phoned to cancel his car insurance policy yesterday as he has sold the car and bought a motorbike, they have charged him £20.00 admin fee for the privilege. I wouldn't mind if he had changed his car but having sold it and not replacing it, this is just a complete and utter rip off.

And why do you think other policyholders should have to pay for his admin?

Lord_Baltimore

dunstonh wrote: »

And why do you think other policyholders should have to pay for his admin?

Because responsible businesses (excepting the insurance industry of course) build this into their running costs? or

Because there is enough profit already in the insurance industry without squeezing every last drop out of departing customers? or

Because twenty quid for pressing 'delete' is way over the odds? or

Because I doubt this customer knew about these charges until it was too late and therefore too financially punitive to reject them?

dunstonh

Because responsible businesses (excepting the insurance industry of course) build this into their running costs?

And therefore charge for it in the services they provide.

Because there is enough profit already in the insurance industry without squeezing every last drop out of departing customers?

Yet car insurance itself is not that profitable and actually is loss making for many (they make money on the addons or reassurance side)

Because twenty quid for pressing 'delete' is way over the odds? or

Is that what you think actually happens?

Because I doubt this customer knew about these charges until it was too late and therefore too financially punitive to reject them?

Maybe it will teach him/her to read about the product being bought.

Explicit charging in general is actually favoured by the regulator. Indeed, whole sections of financial services have been forced to move that way on instruction from the regulator.

So, again, why should other policyholders pay increased premiums to cover the costs of the few that create admin tasks? Surely the fairer way is to charge those that create the work?

rs65

Lord_Baltimore wrote: »

I'd be interested to know when you were first made aware of this "admin fee" by your insurer?

Sheila's wheels have their charges on their website and in their policy booklet.

Lord_Baltimore wrote: »

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.

Some do provide a service without fees but you won't find them near the top of a comparison website.

Aviva don't charge for changes made online.

murphyg

In response, I don't expect other people to pay for his admin fee dunstonh, I would expect to pay an admin fee for change of address for example, but seems rather silly when we've actually sold the car!

murphyg

Yet car insurance itself is not that profitable and actually is loss making for many (they make money on the addons or reassurance side).

It must be very difficult to provide a service that actually runs at a loss, if this is truly the case then why provide it. No large corporation does anything that they're not going to make money on, I had the misfortune of working for a large financial institution for 20 years before I got parole.