Insurance Renewal Fees
31 replies
12.3K views
MSE_Tony
MSE Staff 87 posts
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
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
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Replies
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.
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/
And all the posters who contribute do it here for free!
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
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
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