Direct Line 'Admin' fee for Insurance cancellation. Disputable?

groundskeeperwilly

Hey folks,

I have had my car insurance with Direct Line now for a good few years. I renewed for 12 months at the end of November and paid all at once. I have always been happy until now..

I called today to change my vehicle as I have bought a different car. I have done this many times in the past with no issue. Unfortunately today DL quoted me an extra £79 ontop of what I have already paid for the new vehicle. I though this was a bit steep as it was a big hike and over £100 more expensive than a competitors best quote.

I decided best choice was to leave DL and go with the other company. upon deciding this DL told me the 'Admin' charge to leave was £47! Not only that but they couldn't tell me exactly how much of a refund I would get!

All round it was poor service. However my main gripe is the £47 'Admin fee. I have found a MSE article where the Financial Conduct Authority says they have to be "reasonable" and must reflect the true cost of administration. If this isn't the case you can ask the insurer for the fee to be waived.
(http://www.moneysavingexpert.com/news/insurance/2015/05/the-devil-is-in-the-details-insurers-charge-huge-fees-for-simple-changes)

I asked for the fee to be waived or reduced but they said it couldn't be - does anyone know if there is a realistic chance of pursuing this? It seems like it was hidden in the small print or else I just missed it every time I renewed for the ;last 5 or 6 years....

chrisw

If you want to take it further you could always contact the Financial Ombudsman:-

http://www.financial-ombudsman.org.uk/publications/technical_notes/cancelling-renewing-car-insurance.html

Mercdriver

Have you got comparison quotes for the new car from other insurers? You may find as another poster here has found, that DL are still cheaper than the others even with the surcharge.

Check your Ts and Cs if you have agreed to terms that say there is a admin charge for early termination, then you may have an uphill task fighting it.

groundskeeperwilly

chrisw wrote: »

If you want to take it further you could always contact the Financial Ombudsman:-

http://www.financial-ombudsman.org.uk/publications/technical_notes/cancelling-renewing-car-insurance.html

Thanks ChrisW - am looking into it.

groundskeeperwilly

Mercdriver wrote: »

Have you got comparison quotes for the new car from other insurers? You may find as another poster here has found, that DL are still cheaper than the others even with the surcharge.

Check your Ts and Cs if you have agreed to terms that say there is a admin charge for early termination, then you may have an uphill task fighting it.

Hi

yes I have other quotes and even having to pay the high admin fee to leave DL the other option still works out cheaper in the long run!

Quentin

The FOS agreed years ago that £50 was a reasonable cancellation fee, so you can't hold out too much they will rescue you.

There is some evidence that some insurers will offer "goodwill" gestures to kill off complaints like this, so still worth pursuing a formal complaint all the way in case they also take that option.