Car Insurance Admin Fee?

Lord_Baltimore

dunstonh wrote: »

And therefore charge for it in the services they provide.

Yes upfront and not via the the back door.

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

Or from 'admin costs'.

Is that what you think actually happens?

Enlighten me. Although I'm referring to the principle not the mechanics.

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

Yes, we should all read the smallprint. Everyone has the time for this well known method of burying important information.

Lord_Baltimore

rs65 wrote: »

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

And if you don't have internet access you have to buy the insurance before you can see the terms; and if you cancel then it will cost you big time.

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.

AVIVA are therefore worth considering when one can get out of the current stranglehold of one's present insurer.

k12479

Lord_Baltimore wrote: »

Yes upfront and not via the the back door.

But then the people who don't make changes, etc. have to pay for services they don't use. How is that fair?

Lord_Baltimore wrote: »

Yes, we should all read the smallprint. Everyone has the time for this well known method of burying important information.

Apparently, nearly 18 million people watched Wimbledon. I'm sure a lot of them also whine that they don't have time to read the small print on their insurance.

dunstonh

Yes upfront and not via the the back door.

So, you agree that a fixed admin fee charged only when admin created is fairer than one hidden in the premium that everyone pays every year whether they create admin or not. Or as you say, through the back door which is what hiding it in the premium does.

Enlighten me. Although I'm referring to the principle not the mechanics.

To get to a stage where they can press a button they would have to have spent a fortune.

Yes, we should all read the smallprint. Everyone has the time for this well known method of burying important information.

Admin fees are not normally in the small print. They are typically published in the key facts.

And if you don't have internet access you have to buy the insurance before you can see the terms; and if you cancel then it will cost you big time.

A cancellation fee charged during the cooling off period has to be disclosed when buying by phone prior to agreeing to proceed.

Lord_Baltimore

k12479 wrote: »

But then the people who don't make changes, etc. have to pay for services they don't use. How is that fair?

You pay for insurance you might never use, how is that fair? If you need to make changes, and at some point you will, you're already covered.

Apparently, nearly 18 million people watched Wimbledon. I'm sure a lot of them also whine that they don't have time to read the small print on their insurance.

You've got me there. What do you mean?

Lord_Baltimore

dunstonh wrote: »

So, you agree that a fixed admin fee charged only when admin created is fairer than one hidden in the premium that everyone pays every year whether they create admin or not. Or as you say, through the back door which is what hiding it in the premium does.

I feel that all charges should be in the premium with no further deductions for 'adjustments'. Market forces will keep premiums competitive.

To get to a stage where they can press a button they would have to have spent a fortune.

How so? Please explain. Thanks.

Admin fees are not normally in the small print. They are typically published in the key facts.

The key facts become available after you buy the product. Cancel the product and you are robbed. Keep the product and make a simple change and you are robbed.

A cancellation fee charged during the cooling off period has to be disclosed when buying by phone prior to agreeing to proceed.

There should be no further fees than the premium.

dunstonh

I feel that all charges should be in the premium with no further deductions for 'adjustments'. Market forces will keep premiums competitive.

I consider that sort of charging unfair as I dont want to pay for the admin that others create. I prefer to only be charged when I create admin and benefit from lower premiums instead.

How so? Please explain. Thanks.

How much does the computer the button is pressed on cost?
How much does that staff member cost?
How much does their supervisor cost?
How much does their manager cost?
How much do the compliance staff cost?
How much do the actuaries cost?
How much do the IT staff cost?
How much are the business rates, electric, storage etc cost?

There should be no further fees than the premium.

And there are still companies that charge that way if you still think that is a better option for you. It is good that we have the choice. Why do you want to remove choice?

The key facts become available after you buy the product. Cancel the product and you are robbed. Keep the product and make a simple change and you are robbed.

The key facts are available before you buy the product. Only on telephone are they not and that is why they are required to state what any cancellation charge would be during the cancellation rights period.

Lord_Baltimore

dunstonh wrote: »

I consider that sort of charging unfair as I dont want to pay for the admin that others create. I prefer to only be charged when I create admin and benefit from lower premiums instead.

The administrators exist whether you call upon their services or not. They get paid whether you use them or not. We all pay for that. Supplementary admin charges are legalised mugging designed for one thing only: increased profits.

How much does the computer the button is pressed on cost?
How much does that staff member cost?
How much does their supervisor cost?
How much does their manager cost?
How much do the compliance staff cost?
How much do the actuaries cost?
How much do the IT staff cost?
How much are the business rates, electric, storage etc cost?

These are normal running costs that every business has to budget for without supplementing its charges during the course of an agreed contract. If a Company can't remain competitive without dipping its hands into the customer wallet for simple adjustments, it's inefficient, disingenuous and of course, greedy.

And there are still companies that charge that way if you still think that is a better option for you. It is good that we have the choice. Why do you want to remove choice?

The greater number of insurers are acting in the manner of a cartel; some choice. I like choice, I want more of it just like you do.

The key facts are available before you buy the product. Only on telephone are they not and that is why they are required to state what any cancellation charge would be during the cancellation rights period.

Only some of the key facts are given over the phone. I can find out the rest when I buy the product and trawl through the fineprint (like anyone has the time for that). Too bad if I don't like them though.

fuzzgun19

Sorry to hijack this thread, but I have a similar question.

I have car insurance (full comp) with Sheilas Wheels Broker.

I have just changed my car, and their admin fee is £26.
The guy on the phone said it would be another £45 in insurance for the car change.

Is there any way I can haggle with regards to the £45? I did ask if this could be lowered, but he said no as it's set by the underwriter or something.

I did a price comparison and the quote from the same insurer is only £8 more than my old car...? so around this is what I was expecting, not £45.

dunstonh

Is there any way I can haggle with regards to the £45? I did ask if this could be lowered, but he said no as it's set by the underwriter or something.

The risk premium is what you pay to cover the car.

I did a price comparison and the quote from the same insurer is only £8 more than my old car...? so around this is what I was expecting, not £45.

They tend to discount on new buy insurance. not in mid term or renewal.