Car insurance admin fees?

betfry

Hi,

Thanks to this site I managed to find a much cheaper car insurer than my previous one which had automatically renewed (Admiral). I cancelled Admiral and went with Endsleigh (I am currently studying), saving over £200! :j

However, when setting up the new insurance, it seems I put an extra year on my no claims discount (unintentionally, I thought I had put the correct amount). Now they have received the proof of no claims they are asking for an extra £40, which is fair enough, but an extra £25 for admin fees?

My question is, is there any way I can avoid having to pay these admin fees, for an easily made mistake? I find it unfair that they are asking for this.

Any advice would be appreciated, thanks.

B

dunstonh

Now they have received the proof of no claims they are asking for an extra £40, which is fair enough, but an extra £25 for admin fees?

Quite normal. Especially if you go for the cheapest premiums on a comparison site.

My question is, is there any way I can avoid having to pay these admin fees, for an easily made mistake? I find it unfair that they are asking for this.

Why is it unfair that you should pay for your error instead of other policyholders who did not make the error?

A £25 admin charge is entirely reasonable and this is what you get for buying a cheap premium that takes out the cost of administration from the premium. Those with no admin fees have higher premiums typically.

betfry

Well, I think it's unfair because as far as I know, I didn't make an error! It may have been on their end. I also don't see how £25 is required for someone to spend 30 seconds altering the info.

Despite this additional charge, the cheapest premium is still over a hundred pounds cheaper than the other options, so I'm not regretting my choice.

Thanks anyway!

Buellguy

betfry wrote: »

Well, I think it's unfair because as far as I know, I didn't make an error! It may have been on their end. I also don't see how £25 is required for someone to spend 30 seconds altering the info.

Despite this additional charge, the cheapest premium is still over a hundred pounds cheaper than the other options, so I'm not regretting my choice.

Thanks anyway!

Erm, yes you did


it seems I put an extra year on my no claims discount (unintentionally, I thought I had put the correct amount).


the £25 is made up of someone's time, some, at least, to the underwriter for altering the policy, recalculating the premium, phonecalls etc. Could be worse though, some places cost £50

spacey2012

Buellguy wrote: »

Erm, yes you did


it seems I put an extra year on my no claims discount (unintentionally, I thought I had put the correct amount).


the £25 is made up of someone's time, some, at least, to the underwriter for altering the policy, recalculating the premium, phonecalls etc. Could be worse though, some places cost £50

i have heard of one of the online only brokers charging £150 for any alteration.

betfry

What I mean is, I know how many years no claims discount I have and I thought I had put that. Then the email says I have put the wrong number although I don't remember that.

Either way, I'll suck it up and pay the man :P thank goodness it's not £150!

lisyloo

My question is, is there any way I can avoid having to pay these admin fees

Being nice and eating humble pie can sometimes work - although insurers are not known for their kindness.
You need to drop any "it's unfair" attitude though, even if you're only pretending.

Direct Line did waive a cancellation fee for my FIL when he gave up driving through old age when we asked them nicely.

dunstonh

Well, I think it's unfair because as far as I know, I didn't make an error!

You admit you made an error.

I also don't see how £25 is required for someone to spend 30 seconds altering the info.

There is an element of cross subsidy here. There has to be for simplicity. Someone on the phone for 3 minutes doing admin gets charge the same as someone taking an hour.

However, whilst the transaction may be quick, the resources that need to be in place to allow that transaction to be quick cost money.

Why do you think it is fairer for other policyholders to pay for your mistake?

betfry

dunstonh wrote: »

You admit you made an error.



There is an element of cross subsidy here. There has to be for simplicity. Someone on the phone for 3 minutes doing admin gets charge the same as someone taking an hour.

However, whilst the transaction may be quick, the resources that need to be in place to allow that transaction to be quick cost money.

Why do you think it is fairer for other policyholders to pay for your mistake?

Hold on, I just assumed I made an error because I got an email saying so and I'm not so conceited that I think I am incapable of error.

Also, I would not expect other policyholders to pay anything! I was simply wondering whether or not admin fees were set in stone or if people had had experiences where they were let off in certain circumstances.

I wonder if I had not mentioned that I am a student whether the replies would have been in a different tone. I admit that I don't have a lot of experience in insurance matters, etc., which is why I came here for advice.

Buellguy

You can get the fees knocked down, we certainly used to do it. BUT it depended on the person on the phone and the reason. Simple error (house number wrong, had licence for a different number of years but no change in premium, daft little things) and we could ask to get the charge reduced/waived. Problem is with yours the whole premium will have to be recalculated therefore the charge....

dunstonh

Also, I would not expect other policyholders to pay anything!

So, if you are not willing to pay for it and other policyholders are not going to pay for it, then where does the money come from to pay for it?

I was simply wondering whether or not admin fees were set in stone or if people had had experiences where they were let off in certain circumstances.

It is up to every business to take a view on its charges. Some will be rigid, others flexible. However, it is normal for the cheapest premium providers on comparison sites to have admin charges for most things.

I wonder if I had not mentioned that I am a student whether the replies would have been in a different tone.

I doubt it. For me, it was you saying they were unfair. Education and understanding is better for you than having all of us agree with you. We may not always be right but that is what discussion/debate is all about. You now know a counter argument to your "unfair" comment