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Insurance Renewal Fees

edited 26 February 2013 at 8:04PM in Insurance & Life Assurance
31 replies 12.2K views
MSE_TonyMSE_Tony MSE Staff
77 posts
Eighth Anniversary Combo Breaker Car Insurance Carver! Home Insurance Hacker!
MSE Staff
edited 26 February 2013 at 8:04PM in Insurance & Life Assurance
Hi everyone, and welcome.

More and more insurers are starting to introduce renewal fees – which we think is a bit of a cheek.

We have listed some, and the charges they add on to your renewal premium, but is this going to be the start of a new insurance charge.

We'd love to hear your thoughts and if your insurer is starting to charge you a 'renewal fee' and how much.




This thread doesn’t just apply to car insurance renewal fees but also home insurance, bike insurance, any insurance.


Thank you,

MSE Tony
«134

Replies

  • withabixwithabix Forumite
    9.5K posts
    Fee's what?
    British Ex-pat in British Columbia!
  • MSE fail :T
    Save £200 a month : [STRIKE]Oct[/STRIKE] Nov Dec Jan Feb Mar Apr
  • rs65rs65 Forumite
    5.5K posts
    Eighth Anniversary 1,000 Posts Combo Breaker Car Insurance Carver!
    ✭✭✭✭
    MSE_Tony wrote: »
    More and more insurers are starting to introduce renewal fees – which we think is a bit of a cheek.
    Is it Insurers that are charging fees, or brokers?

    I haven't seen an insurer charging a fee - why not just enhance the premium. The only reason they would separate a fee is to avoid IPT on the fee element, if they would get away with that.

    If its brokers, then its because they don't earn enough on a pure commission basis.

    From your article:-

    Here are a list of policies we know who are imposing the renewal fee,

    Several of those are brokers - I don't recognise them all.
  • edited 27 February 2013 at 12:32AM
    QuentinQuentin Forumite
    40.4K posts
    ✭✭✭✭✭
    edited 27 February 2013 at 12:32AM
    MSE_Tony wrote: »
    .....We'd love to hear your thoughts ......

    To save face, remove the article and delete this thread!

    Presumably MSE have a so called insurance expert who gets paid for writing these laughable insurance articles (remember the one advising us all to cancel our policies mid term and switch to a cheaper provider!):

    http://www.moneysavingexpert.com/tips/15-02-2012/

    1. Don't wait until renewal to save. Unless you've claimed, you can usually ditch policies free, or at worst a £20 - £50 fee (if so, check savings overcome that).


    And all the posters who contribute do it here for free!
  • vaiovaio Forumite
    12.3K posts
    something to do with the new management?
    Dangermac wrote: »
    I agree with you......

    DM
  • dacouchdacouch Forumite
    21.6K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    Autodirect - Broker
    1st Central - Insurer (Rubbish)
    Ikube - probably a broker
    Kwikfit - broker
    Aquote - broker
    American Express - broker
    Forces Financial - broker
    Hastings Direct - broker
    Peoples Choise - broker
    Ingenie - Underwriting Agent (Two Insurers)

    Four of the above are basically the same two brokers.

    You're so not moneysupermarket
  • dunstonhdunstonh Forumite
    101.2K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    MSE Tony, the article is a mistake and a misunderstanding by MSE.

    You are mixing up brokers with insurers. The move to fees is an ever increasing move to explicit charging where the cost of the supply of the product is taken out of the premium (and reduced or even no commission) but charged explicitly by the broker. This should be welcomed and other consumer groups have said they prefer explicit charging as it removes the potential for commission bias in supply. It also lets the individual know the explicit cost of that "retailer" and not have it hidden as an undisclosed commission within the premium. So, why does MSE have a different view to other consumer groups?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dacouchdacouch Forumite
    21.6K posts
    Part of the Furniture 10,000 Posts
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    dunstonh wrote: »
    MSE Tony, the article is a mistake and a misunderstanding by MSE.

    You are mixing up brokers with insurers. The move to fees is an ever increasing move to explicit charging where the cost of the supply of the product is taken out of the premium (and reduced or even no commission) but charged explicitly by the broker. This should be welcomed and other consumer groups have said they prefer explicit charging as it removes the potential for commission bias in supply. It also lets the individual know the explicit cost of that "retailer" and not have it hidden as an undisclosed commission within the premium. So, why does MSE have a different view to other consumer groups?

    P.S Moneysupermarket are an Insurer...fact
  • dacouch wrote: »
    P.S Moneysupermarket are an Insurer...fact

    No they are not. Fact! Look on the FSA register and you will see that they only do Insurance Mediation
    Permission for:

    303190 - Moneysupermarket.com Financial Group Limited

    Requirements Article 3 MiFID exempt firm Activity Name: Advising on investments (except on Pension Transfers and Pension Opt Outs)
    Investment Instrument
    Non-investment insurance contracts

    Customer type
    Commercial
    Retail (Non-Investment Insurance)

    Activity Name: Advising on regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Agreeing to carry on a regulated activity
    Limitation
    Limited to carry on regulated activities.

    Activity Name: Arranging (bringing about) deals in investments
    Investment Instrument
    Non-investment insurance contracts
    Unit

    Customer type
    Commercial
    Retail (Investment)
    Retail (Non-Investment Insurance)

    Activity Name: Arranging (bringing about) regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Dealing in investments as agent
    Investment Instrument
    Non-investment insurance contracts

    Customer type
    Commercial
    Retail (Non-Investment Insurance)

    Activity Name: Making arrangements with a view to regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Making arrangements with a view to transactions in investments
    Investment Instrument
    Non-investment insurance contracts
    Unit

    Customer type
    Commercial
    Retail (Investment)
    Retail (Non-Investment Insurance)
    "

    Compare this with Covea, who have the following permissions (amongst others)

    Activity Name: Carrying out contracts of insurance
    Investment Instrument
    Accident
    Aircraft
    Aircraft liability
    Credit
    Damage to property
    Fire and natural forces
    General liability
    Goods in transit
    Land Vehicles
    Legal expenses
    Liability for ships
    Miscellaneous financial loss
    Motor vehicle liability
    Railway rolling stock
    Ships
    Sickness
    Suretyship

    Customer type
    All




    (Have you EVER seen an insurance policy signed off by Moneysupermarket?)

    Going back to fees - the FSA has already insisted that Financial services intermediaries charge fees for most financial products rather than take a commission and their aim, eventually, is to make this a condition of all financial services products (including insurance).

    Responders might like to guess how high a percentage of premium do intermediaries and brokers earn in commission on motor insurance.
  • dacouchdacouch Forumite
    21.6K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    weejonnie wrote: »
    No they are not. Fact! Look on the FSA register and you will see that they only do Insurance Mediation
    Permission for:

    303190 - Moneysupermarket.com Financial Group Limited

    Requirements Article 3 MiFID exempt firm Activity Name: Advising on investments (except on Pension Transfers and Pension Opt Outs)
    Investment Instrument
    Non-investment insurance contracts

    Customer type
    Commercial
    Retail (Non-Investment Insurance)

    Activity Name: Advising on regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Agreeing to carry on a regulated activity
    Limitation
    Limited to carry on regulated activities.

    Activity Name: Arranging (bringing about) deals in investments
    Investment Instrument
    Non-investment insurance contracts
    Unit

    Customer type
    Commercial
    Retail (Investment)
    Retail (Non-Investment Insurance)

    Activity Name: Arranging (bringing about) regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Dealing in investments as agent
    Investment Instrument
    Non-investment insurance contracts

    Customer type
    Commercial
    Retail (Non-Investment Insurance)

    Activity Name: Making arrangements with a view to regulated mortgage contracts
    Investment Instrument
    Regulated mortgage contract

    Customer type
    Customer

    Activity Name: Making arrangements with a view to transactions in investments
    Investment Instrument
    Non-investment insurance contracts
    Unit

    Customer type
    Commercial
    Retail (Investment)
    Retail (Non-Investment Insurance)
    "

    Compare this with Covea, who have the following permissions (amongst others)

    Activity Name: Carrying out contracts of insurance
    Investment Instrument
    Accident
    Aircraft
    Aircraft liability
    Credit
    Damage to property
    Fire and natural forces
    General liability
    Goods in transit
    Land Vehicles
    Legal expenses
    Liability for ships
    Miscellaneous financial loss
    Motor vehicle liability
    Railway rolling stock
    Ships
    Sickness
    Suretyship

    Customer type
    All




    (Have you EVER seen an insurance policy signed off by Moneysupermarket?)

    Going back to fees - the FSA has already insisted that Financial services intermediaries charge fees for most financial products rather than take a commission and their aim, eventually, is to make this a condition of all financial services products (including insurance).

    Responders might like to guess how high a percentage of premium do intermediaries and brokers earn in commission on motor insurance.

    err.....lol
This discussion has been closed.

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