MSE News: The devil is in the details: Insurers charge huge fees for simple changes

Blibble

tight4rse wrote: »

Yawn.

Read the previous post mate.

I'm not paying more money upfront for a policy that doesn't charge fees, when I can get a cheaper one and get the fee waived by customer relations should I need to make an amendment mid term.

Like I said that way I get my cake and eat it.

If you have a fee in the t&c's which you can't justify then I'm not paying it. End of!

Cheaper? 4 months worth of complaints procedure, stress, and hassle to waive a fee you willingly and knowingly signed up to paying?

It may be cheaper, but I value my time. £47 saving for 4 months work isn't worth it, thanks.

Yawn.

User_101122

Cheaper? 4 months worth of complaints procedure, stress, and hassle to waive a fee you willingly and knowingly signed up to paying?

It may be cheaper, but I value my time. £47 saving for 4 months work isn't worth it, thanks.

4 months??

This was 6 weeks ago and they'd backed down after 25 minutes!

It's so called insurance experts like yourelf that are still arguing about it weeks later.

It's about the principle not the money.

It's people like you that walk away from problems and just pay up when you know you're getting ripped off, that make these companies think it's OK to to us all off!

downliner

Yep i just had the same conversation with GoSkippy/Debenams Car insurance who incidentally operate under the hugely incompetent Eldon Insurance run by Aaron Banks.

I call up to inform i have just sold my old car (07 Reg) and wanted to change the vehicle to a newer 16 Reg Rio. They keep me on hold for 15 minutes while they 'calculate' and come back with a charge of £431 to make the change! Take into account this is two months into the policy.

I ask how much would it cost to cancel and it turns out the cancellation of the policy is cheaper than making a change to the registered vehicle but not by much, £406 providing the policy is cancelled at midnight tonight and i still pay the premium on the 2nd august (£153.56) so really it costs £560 to cancel!!

I find it hard to believe Debenams would put their names to this kind of outfit that charge you £70 just to change your address and £50 admin for things like change of employment.

Not sure what to do now but I have contacted their cancellations department to request cancellation of the policy as well as to inform them I will be making a formal complaint to the Financial Ombudsman regarding their business practices.

I really should've taken a look at this (reviews.co.uk/company-reviews/store/debenhams-car-insurance) before going with what the comparison sites deemed to be the cheapest car insurance. Well it's certainly cheaper but their charges for every single change make up for that!

Quentin

If you read up on the FOS site you will see your plan to complain to them is flawed

To get FOS involved you first complain to the insurer

Then if they ignore you for 8 weeks or you are unhappy with the reply you can escalate to the FOS for their adjudication.

(FOS won't get involved with their business decisions to charge admin fees)

downliner

As the article on this very site states insurance companies are free to charge administrative fees for services but when those fees are unreasonable such as charging close to £500 just to change the vehicle details or £70 just to change the address to one not even a quarter of a mile away then you have a right to complain.

So that's what i will be doing and when you read the reviews on this company as shown in the link you will see why.

dunstonh

As the article on this very site states insurance companies are free to charge administrative fees for services but when those fees are unreasonable such as charging close to £500 just to change the vehicle details or £70 just to change the address to one not even a quarter of a mile away then you have a right to complain.

There wont be a single insurer out there charging £500 to change the vehicle. Please do not make figures up.

The typical charge is around £20-£75 ballpark.

and come back with a charge of £431 to make the change! Take into account this is two months into the policy.

That will not be the charge. it will be made up of a charge and the rest will be risk premium. What was the breakdown?

I ask how much would it cost to cancel and it turns out the cancellation of the policy is cheaper than making a change to the registered vehicle but not by much, £406 providing the policy is cancelled at midnight tonight and i still pay the premium on the 2nd august (£153.56) so really it costs £560 to cancel!!

This suggests you are not paying your premiums up front but using a loan to pay them. The loan and direct debit are not in sync with the premium and cancellation terms in the early months are not pro-rata. With 2 months in your could be around 4 months owing if you cancel.

I will be making a formal complaint to the Financial Ombudsman regarding their business practices.

And what exactly have they done wrong as nothing in your post suggests any wrongdoing. Certainly you are confused but that doesnt mean they are doing anything wrong.

Quentin

downliner wrote: »

As the article on this very site states insurance companies are free to charge administrative fees for services but when those fees are unreasonable such as charging close to £500 just to change the vehicle details or £70 just to change the address to one not even a quarter of a mile away then you have a right to complain.
.

You have a right to make complaints. Though cannot do so to the FOS without first going through the insurers complaint procedure as advised

But you don't have any grounds to and appear to misunderstand

The £500 you mention for changing car details won't be just the administration fee. You are the one changing the goalposts by wanting them to cover a different car

The new car has attracted a higher premium than the one it replaced. If you can find a cheaper premium elsewhere and it is cost effective to do so you can cancel and go elsewhere

Next time you change your car check out whether your insurer likes the replacement (and will be prepared to cover it), as well as the costs involved before you buy it..

downliner

Why is everyone in such a hurry to defend what is nothing more that sheer incompetence?

I have spoke to Admiral insurers as well as esure and insurethebox and even they told me the cost to change a vehicle at most is £80. Through Admiral its £19.95 flat rate and on InsuretheBox its £30 so where is £431 coming from?

I'm not making this up. I have spent the best part of an hour being passed from pillar to post only to find the charge to change details just seems to come out of a hat!

Read the reviews in the link and try and find me 10 good ones from 11 pages each with 20 reviews. All the problems described those reviews pretty much match my own experience with Eldon Insurance operating as Debenams/GoSkippy insurance.

Low quote sure and this is why they make the top list of comparison sites but they get you on the admin fees so if you ever get insurance with them be damn sure you don't change Address, Employment or Vehicle for the duration and more importantly do not get into a claims situation with them!

Sad that a supposedly reputable high street Brand would allow their name to be used on these types of services.

I did some digging on Eldon Insurance just to find out who was really fronting the Policy only to find the business is registered to a residential property and run by none other than Aaron Banks.

Having worked in the insurance industry for 12 years under Legal & General i am well aware of what the industry refers to as gouging customers though admin fees while appearing to be the best deal in the numbers that are actually checked through comparison sites but honestly Comparison sites should also take a companies past reputation into consideration before just recommending the lowest price perceived.

Quentin

You don't get it,!

You haven't been charged £500 administration fee to change your car

As explained, you will have been charged an admin fee for making a midterm change and your chosen new car is meaning an increase in your premium!

downliner

The change is from a Chevrolet Matiz 1.0 2007 SE with 65k on the clock to a Kia Rio Diesel 1.1 EcoDynamics 2016 with 45k on the clock so why would the premium increase on what equates to the same horsepower on a newer car by 9 years?

And why £431 to change that detail? This car has immobiliser, factory fitted alarm as well as theft tracking and the last one only had an alarm.

Why silly charges for changing an address to another one in the same postcode area? Did crime spike in the less than quarter mile radius in the same town?