Argh!!! Kwik Fit admin charge

blt

Furious! I have just called Kwik Fit as I paid for a full year's insurance on my car with them last November. Since then I have had no claims, changes or anything but just wanted to know if my premium would increase if I changed my car.

The woman ran all the details through the computer and told me that it was £12 cheaper over the year. But.....they have a £35 admin charge for me changing my car and so I'd owe them £23!!!!! !!!!!!?!

They don't even send paper copies of anything to you - they just email!

Has anyone any tips for getting out of the charge? The woman on the phone couldn't help.

Thanks:mad:

Captain_Shambolic

Unfortunately you'll find there's nothing you can do. Changing your car has created work for the company even if they don't send any documents in the post so an admin charge is something they can and will charge and you'll find that with any insurance company. Typically the more 'budget' the company is the more they will charge in admin fees and cancellation charges (that is just my experience of it though)

blt

I can absolutely understand a charge but £35?! I can't see how it generates THAT much work. It's just like when banks used to charge £30 for sending a letter. And it wasn't even the cheapest in November - it was the lowest of the bigger named companies. I was reluctant to take cover with a company I'd never heard of. I certainly won't be renewing with them.

Captain_Shambolic

Insurance companies ultimately will stick whatever charge they can without looking like it's unfair, the work will have been generated and admin fees in a sense pay for the time for that member of staff to change the information (which may take them off the phone depending on the system they use) when they could have been on the phone to a new customer.

An example would be that I've had home insurance with Budget and Aviva in the past. Aviva was more expensive but charged £18 for admin fees whereas Budget were significantly cheaper but charged £25 for admin fees. If the FoS deem it as fair they'll charge however much they can, important thing is if it says that they'll charge £35 in the Policy Booklet, if it does there's not a thing you can do as accepting the insurance meant you accepted whatever terms came with it.

Jennifer_Jane

Has your Quidco or Topcashback amounts tracked, etc? Just wondering if you felt it might be cheaper to cancel Kwik-fit (presumably there is a charge for that), and take out new insurance with someone else who also does good cashback.

My car insurance is with John Lewis, as their cashback was great at the time. But I always check with the comparison sites on Quidco/TCB, then clear cookies and go to the site.

worried_jim

Just pay it if necessary, it's the way of the world and there is nothing you can do it about it, at least it is only £23 and the likely hood that when you get insurance next year it will be even cheaper than you are currently paying.

dunstonh

The woman ran all the details through the computer and told me that it was £12 cheaper over the year. But.....they have a £35 admin charge for me changing my car and so I'd owe them £23!!!!! !!!!!!?!

Quite normal. Nothing to get excited about.

Has anyone any tips for getting out of the charge?

The charge seems quite fair. So, no reason to get out of it.

I can absolutely understand a charge but £35?! I can't see how it generates THAT much work

an admin charge has to cater for people that are on the phone 10 minutes or 60 minutes. It has to cater for those that create hours of work or minutes of work. So, there is an element of cross subsidy. However, by charging an admin fee for those creating admin, it allows the premium to be lower and that benefits the majority who do not create extra work.

It's just like when banks used to charge £30 for sending a letter.

Not really as that involved one individual, maybe two. Your situation involves many more involved.

I certainly won't be renewing with them.

Who are you going to pick then as this is pretty standard now. There are still some that have no admin charges but their premiums tend to be higher as the premium covers the admin. So, you could end up worse off by taking this stance.

_Andy_

"I can absolutely understand a charge but £35?! I can't see how it generates THAT much work. " - right, so by that rationale, any service or product should only be priced at their cost price?

Eg if I go and buy a loaf of bread for £1 - that would be 'unfair' as it only cost the supermarket 30p?