Rip off admin charges.........

olly300

What I said was in relation to the OPs point, they had moved, it doesn't matter that the charges are explicit, there is no way to foresee the move, unless you already had it planned and you need a current address on the policy, so there would be no way round the charge, which in their opinion ,and mine, is a rip off, but you will defend them as you work in the industry!

Course there is.

If you are planning on buying a property you know that you are going to buy a property at least a few months ahead and loads of people I know knew they were going to move a year ahead.

If you are renting then you know you can be chucked out anytime after your fixed period, which is why lots of tenants don't on six monthly contracts don't sign up to Sky.

If you are a student and are planning to go to higher education then you would have known this when you completed your UCAS form which you do at least a year in advance.

There are actually very few occasions when you don't know you are likely to move a year ahead of time. Even with changing jobs unless your company goes bust you know you are going to be looking for a new job a good few months ahead of time.

dunstonh wrote: »

I'm afraid that it appears that the average member of the public isnt clever enough to understand that explict charges are better than implicit. Even though they are financially better off they criticise the charge when it's levied.

Whether the charges are explicit, or implicit meaning higher premiums, the average member of the public is going to complain anyway as all finiancial products have to be a rip off.

This has been helped by the pensions scandals and now with the bank charges.They unfortunately don't understand the difference between legal charges (that are spelt out to them if they bothered to read the small print) and have been tested through a higher authority, and charges that the banks have been trying to stop being tested out by a higher authority.

_Glycerine_

Got to agree with lisyloo on this one. T&C should be read.
And Im abit surprised that no one has even mentioned that whole new sets of documents have to be created and posted out which is what makes up a large amount of the admin charge.

If everyone pays admin charges, takes out insurance and dont make bogus personal injury claims even if their car was hit at 2mph, then premiums would be so much lower.

Why is it that most people keep thinking that insurance companies are trying to rip people off. If they ever read any news they would see that a large number of insurance companies are losing money.

derrick

I am sorry to respond again,(last time), but even if you do read the T&Cs and understand everything in them,(as I have pointed out before in this thread,read them), if you take out car insurance you need the address on the policy that you are living at, if you then move,even if you knew you where moving prior to taking out the policy, you would then need to amend the policy, for the ins company to charge £25 for 5 minutes work, equates to £300. an hour, even solicitors (mostly), don't charge that, and we are talking of someone who is probably on just above minimum wage!

Hope that is simple enough for everyone?

We are all entitled to our opinions and this is mine.

The only insurance that I carry is for my car, and that is only because it is legal requirement, if it wasn't I would not have that either.

Ins companies,(in my opinion), are just rip off merchants, they are quick enough to take your money but detest and try every trick in the book to not pay out, there are posts on this forum about them, radio,t.v and newspaper items daily about the tactics they use to try and not pay!

FlameCloud

derrick wrote: »

Ins companies,(in my opinion), are just rip off merchants, they are quick enough to take your money but detest and try every trick in the book to not pay out, there are posts on this forum about them, radio,t.v and newspaper items daily about the tactics they use to try and not pay!

You mean like following the legal contract you agreed to when you took out the policy?

They really are not that bad in paying out. In context, most claims are a small drop in the ocean to them. I have no problem with spending somebody elses money when dealing with claims.

lisyloo

New one (but new points).

I don't work in insurance but my understand is that the cost for these amendments is being charged seperately and that means that it's stripped out of the up-front premium.
This is because the companies want their initial premiums to be as low as possible to be competitive with others i.e. they want to be at the bottom/top of the quote list on the search engine.

I do believe that everyone is entitled to their opinion but I would ask people to bear in mind that the costs of these extra services have already been stripped out of the up-front premium to keep them as low as possible.

Insurance is a very competitive business so I don't think they are making massive profits.

for the ins company to charge £25 for 5 minutes work

Not trying to be antagonistic but just wanted to point out that the paper, ink postage etc. are not free, so your calculations are not correct. It is a fact that paper costs money (and someone needs to be paid to order it etc.) so this is a fact and not my opinion.
I do agree that everyone is entitled to their opinion but if anyone closes their mind to new facts and does not have an open mind then that is not a positive thing in my view.

Surely people who "upsticks" to move without a lot of up-front notice must realise that there are going to be costs involved in things they committed to?
As pointed out this include Sky, but would also include 12 month gym packages etc.

Disclaimer: I have no vested interest in the insurance industry. I do not work in it and never have done.


BTW - I have changed my mind about not posting. I will agree not to harp on about old points but I would like the opportunity to politely debate any new points that come to mind.

raskazz

derrick wrote: »

for the ins company to charge £25 for 5 minutes work, equates to £300. an hour, even solicitors (mostly), don't charge that, and we are talking of someone who is probably on just above minimum wage!

Hope that is simple enough for everyone?

Clearly the first reply on this thread was too difficult for you to understand. There are many more costs that go into customer service provision than simply the individual advisor's wages.

derrick wrote: »

We are all entitled to our opinions and this is mine.

This is correct. Your opinion is misguided though.

derrick wrote: »

Ins companies,(in my opinion), are just rip off merchants, they are quick enough to take your money but detest and try every trick in the book to not pay out, there are posts on this forum about them, radio,t.v and newspaper items daily about the tactics they use to try and not pay!

Ah, so you finally show your true colours. I guess that 'ignorance is bliss' in your case.

lisyloo

There are many more costs that go into customer service provision than simply the individual advisor's wages.

Let's take a similar example of labour at a garage.
Costs seem to be between about £30 - £45 per hour.
Clearly this is not just the mechanics wages, but also to cover the provision of the workshop and tools and general running costs e.g. reception.

You could deem this to be a "rip-off" if you compared it to minimum wage and ignored all the costs of running a business (including many taxes).

derrick

lisyloo wrote: »

Let's take a similar example of labour at a garage.
Costs seem to be between about £30 - £45 per hour.
Clearly this is not just the mechanics wages, but also to cover the provision of the workshop and tools and general running costs e.g. reception.

You could deem this to be a "rip-off" if you compared it to minimum wage and ignored all the costs of running a business (including many taxes).

That is garage costs per HOUR, not for 5 minutes work, and they are qualified people with certificates, the people doing the routine admin will not have,(or do not need ), much in the way of qualifications.

You cannot bring another industry into the calculation.

derrick

raskazz wrote: »

Clearly the first reply on this thread was too difficult for you to understand.

No I think it is to difficult for you to understand, read it again, I was responding the the OPs only point re the charges!

Quote from OP- "How can they justify charging a £25 admin fee for 30 seconds work on a computer ????? "

I have increased the time to 5 minutes.

raskazz

derrick wrote: »

No I think it is to difficult for you to understand, read it again, I was responding the the OPs only point re the charges!

Quote from OP- "How can they justify charging a £25 admin fee for 30 seconds work on a computer ????? "

I have increased the time to 5 minutes.

:wall:

I don't know whether to laugh or cry.

I said 'First reply' not 'first post'.