RAC car insurance change of address

notanewuser

the_lunatic_is_in_my_head wrote: »

No that all comes as part of the policy cost. They charge these "admin" fees because they can.

You could argue the profit from these keeps the overall policy price down but suggesting an admin fee for change of address is there to cover the cost of water and other unrelated business costs is, as you put it, a load of toss.

This simply isn't the case. Policies don't cover the costs on their own, especially when it all comes down to price for the average punter. If you want a cheap policy, expect to have to pay when you want additional services. It's the Ryanair model.

the_lunatic_is_in_my_head

notanewuser wrote: »

This simply isn't the case. Policies don't cover the costs on their own, especially when it all comes down to price for the average punter. If you want a cheap policy, expect to have to pay when you want additional services. It's the Ryanair model.

So how do they know how many people are going to change their address and pay an admin fee?

According to Esure the cost covers:

If a customer changes their address, unlike a simple one-off amend for say a shopping website, we have to:
• Re-underwrite the policy based on the new address assessing the accident and theft statistics for the new postcode and surrounding areas. Most of this is done automatically by our systems but often an underwriter may need to check the results if the risk level has changed significantly.
• recalculate the premium and issue a new schedule based on this and the new details
• either change a credit agreement and monthly payment schedule if the customer pays on instalments or alternatively calculate a refund or additional premium for direct debits going forward or, if collected on a credit card, pay a new merchant fee
• print and envelope the new policy certificate, schedule and most up-to-date policy booklet and credit agreement along with a reply paid envelope in the event of any errors or further amendment. Both of these incur postage costs and the time and effort of people managing and sorting incoming post as well as the staff who deal with the administration when amendments come back in.
• And finally, update the new details to the Motor Insurer's Database and other industry anti-fraud databases.

which sounds more likely than chancing enough customers will amend their policy so billion pound companies can pay their water bills.

usefulmale

notanewuser wrote: »

The employee costs the employer more than £7 an hour. Their training, pension, holidays, desk, chair, computer, phone all cost money too.

And that's without mentioning the building they work in, power, water, rates, taxes, computer system, servers, software...... Or did you think that all comes for free? :rotfl:

All of that is the cost of doing business. Last time I went to Asda, nay Aldi even, I paid for my shopping but I didn't see additional 'fees' for buildings, water, power, computers, taxes etc

notanewuser

usefulmale wrote: »

All of that is the cost of doing business. Last time I went to Asda, nay Aldi even, I paid for my shopping but I didn't see additional 'fees' for buildings, water, power, computers, taxes etc

Totally different business model.

You'd like insurers to add £150 to every policy up front to cover the extra costs, would you?

usefulmale

notanewuser wrote: »

Totally different business model.

You'd like insurers to add £150 to every policy up front to cover the extra costs, would you?

Where does that figure come from?

notanewuser

usefulmale wrote: »

Where does that figure come from?

It's a rough guess.

Taiko

notanewuser wrote: »

What a load of toss. :rotfl:

Worked for me, and that suggestion contributes more than you evidently have to the discussion.

notanewuser

Taiko wrote: »

Worked for me, and that suggestion contributes more than you evidently have to the discussion.

By luck, rather than judgement. Bandying about "data protection" when you patently have no idea what it's actually about. Hilarious.

usefulmale

notanewuser wrote: »

The employee costs the employer more than £7 an hour. Their training, pension, holidays, desk, chair, computer, phone all cost money too.

And that's without mentioning the building they work in, power, water, rates, taxes, computer system, servers, software...... Or did you think that all comes for free? :rotfl:

The obvious flaw with that argument is that if I request a quote from these companies by phone, I am not charged £25 for the privilege. Yet those costs will remain. So, according to you, just a few thousand people phoning for a quote will bankrupt them.

Smithers37

Taiko wrote: »

I had similar with Hastings Direct the other year. Quoted the Data Protecton Act at them, which requires them to keep personal data updated. Told them in writing they needed to amend the details or I'd make a complaint to the ICO, and they were amended without charge.

!!!!!!? That doesn't even make sense. Why would quoting the DPA waive the admin fee?

Try quoting the om-nom-nuh-nuh-numb-ombudsman.