Insurance companies admin charges etc.

Sallyswift

I am incensed at the ridiculous admin charges insurance companies charge for change of address or cancellation. Having just moved RAC made a £25 charge on top of a rise in premium charge for car insurance for a new address. AA made a disproportionate high charge for cancelling a Home Contents Policy that was no longer needed as I moved in with my partner and he already has Home Contents Insurance with another provider. The yearly premium was £160 and AA charged me £89 for cover from last Dec up to date of cancellation on 8 Feb. Just about to change address with another insurance co. for another vehicle in my household, no doubt I will end up paying another admin fee.....
I did challenge these fees but to no avail maybe I will contact the Ombudsman. Anyone else experiencing these probs....?

OshayAway

Sallyswift wrote: »

I am incensed at the ridiculous admin charges insurance companies charge for change of address or cancellation. Having just moved RAC made a £25 charge on top of a rise in premium charge for car insurance for a new address. AA made a disproportionate high charge for cancelling a Home Contents Policy that was no longer needed as I moved in with my partner and he already has Home Contents Insurance with another provider. The yearly premium was £160 and AA charged me £89 for cover from last Dec up to date of cancellation on 8 Feb. Just about to change address with another insurance co. for another vehicle in my household, no doubt I will end up paying another admin fee.....
I did challenge these fees but to no avail maybe I will contact the Ombudsman. Anyone else experiencing these probs....?

If the fees and cancellation charges are outlined in the T&Cs, which they almost certainly will be, there is nothing you can do about it.

Quentin

If you want the ombudsman involved you first need to make a formal complaint to the insurers. Then escalate if you aren't happy with their response.

Good luck. But as a moneysaver hope that the fos rules against you. (Why should those making changes expect the rest of us to contribute to the insurers administration costs in dealing with you?)

dunstonh

I am incensed at the ridiculous admin charges insurance companies charge for change of address or cancellation. Having just moved RAC made a £25 charge on top of a rise in premium charge for car insurance for a new address.

£25 seems quiet reasonable.

I did challenge these fees but to no avail maybe I will contact the Ombudsman. Anyone else experiencing these probs....?

The FOS publications show an example where they have ruled and in that case the charge was £50 and they deemed it fair and rejected the complaint. That is largely to be expected as there is a move in industry in many areas with pressure from the regulator to use more explicit charging than cross subsidy.

You created the admin cost. You should pay for that. The old way of everyone paying higher premiums to cover the cost of admin may suit those that make frequent amendments but most are actually better off with explicit charges.

_Andy_

So I assume you'd be happier with higher premiums and no fees? (fees which, incidentally, you agreed to when you took the policy out)

Sallyswift

Yesterday I received a letter of apology- AA said that after investigation of my concerns they found that the Adviser had not fully explained their costs to me, and left me hanging on too long - they have now refunded me the fee for admin charges and legal fees and arrangement fee that they say is normally non refundable making a total refund of £43.49p. - just shows that it is worth following up concerns.......

Sallyswift

I also recently complained to an Insurance Broker about their charges of £45 for a change of address for a car policy - they agreed to reduce the charge to £25!

forgotmyname

I made no changes and got charged nothing, Hows that for money saving

artroc42

So my wife got a speeding ticket and between the time she was caught on a camera and the time we were notified she renewed he policy.
We have to notify the insurance company - no choice - or the insurance is invalid. So, the 3 points and £60 fine - it hurts but we pay it - after all we were at fault. The £60 increase in insurance and the increase in excess - it hurts but we pay it. The £20 admin fee for telling making a change that we were legally obliged to make - grrr!

kingstreet

artroc42 wrote: »

We have to notify the insurance company

So, what do you inform them?

Do you inform them of the NIP, which is only an unproven allegation, or when you accept a fixed penalty (CoFP), or are convicted in court?

What does your insurer's policy booklet say on such disclosure?

Was she in Scotland, or outside the guidelines for a speed awareness course?