Car Insurance Article Discussion

alexinmancs

I got my renewal papers (from Admiral) and read the small print. Apart from the ridiculously high admin charges (£47.50 for cancellations and up to £17.50 for any changes) I saw this:

If you cancel within the 14 day cooling-off period, we reserve the right to charge you £22.50 to cover the costs involved in setting up your policy

A few things wrong here...

The 14 day cooling off period was supposed to be so if people change their minds they are not penalised for jumping into something (or so I thought)
As it happens with all businesses you have to spend some money in order to get some business whether that's premises, promotional items or even cold calling. Passing that on to individuals through a penalty is quite cheeky isn't it, even if it's still legal?

raskazz

alexinmancs wrote: »

I got my renewal papers (from Admiral) and read the small print. Apart from the ridiculously high admin charges (£47.50 for cancellations and up to £17.50 for any changes) I saw this:

If you cancel within the 14 day cooling-off period, we reserve the right to charge you £22.50 to cover the costs involved in setting up your policy

A few things wrong here...

The 14 day cooling off period was supposed to be so if people change their minds they are not penalised for jumping into something (or so I thought)
As it happens with all businesses you have to spend some money in order to get some business whether that's premises, promotional items or even cold calling. Passing that on to individuals through a penalty is quite cheeky isn't it, even if it's still legal?

It is quite legitimate and the FSA have explicitly stated that brokers/insurers can charge a reasonable administration fee (plus any pro-rata premium for time spent on cover) if a customer chooses to cancel within the cooling-off period.

In terms of renewals, the client will almost certainly have received the invitation around 3 weeks before renewal, so they have plenty of time to ensure that they are not 'jumping into anything', and to lapse the policy with no charge if they so wish.

The parallels you draw are not really valid as the charge does not cover marketing activity but actually covers costs in concluding a contract with the client.

If you bought a reel of cable from a hardware store, used a 25th of the length and took it back, you wouldn't expect a full refund, would you? Same with insurance.

dacouch

This recent ruling with have an effect on internet purchases of goods, I doubt it will have an effect on insurance as it's often classed differently.

http://www.channelregister.co.uk/2010/04/16/online_refunds/

alexinmancs

Raskazz thanks for the answer and yes insurance is a different animal so the regulations need to be more flexible, I was doubting the amount they can charge for admin. Bank charges anyone? lol
As for your example it's completely missing the point since I didn't bemoan the fact of them charging for the pro-rata premium. Technically the customer is covered so if they have the responsibility for these days then they should be paid for it.
By the way I was only asking for clarification when it comes to the laws and regulations rather than implying that Admiral are dodgy. I have dealt with them in the past and their actual admin fees are reasonable so they are only hurting themselves by putting such clauses in their Ts & Cs.


As for the ruling in the link dacouch is posting I do find it very unfair. I buy many many things online and I always regard the P&P as a completely seperate cost. I have returned items in the past and the P&P was never returned but that was my choice to go through with the purchase. We are a society and we need balance to survive. I know that the business world has had a lot of favour and in so many cases the consumers were the weak ones legally but going to the other extreme would be equally bad.

mu4l

Guys and girls, I need some serious help on my car insurance.
I'm 18 years old in full-time education, 0 no claims as past my test in feb and just brought a corsa sxi 1.2 t reg. Insurance is so high for my age group been on go compare, compare the market and other sites and my lowest quote is £2,400. I have pass plus certificate. Can anyone help me finding a cheap insurance company would be much appreciated.

james2005

So whats is the lowest risk job that insurers favour you on, cant quite get to to the bottom of this?

iamana1ias

james2005 wrote: »

So whats is the lowest risk job that insurers favour you on, cant quite get to to the bottom of this?

No-one knows

iamana1ias

mu4l wrote: »

Guys and girls, I need some serious help on my car insurance.
I'm 18 years old in full-time education, 0 no claims as past my test in feb and just brought a corsa sxi 1.2 t reg. Insurance is so high for my age group been on go compare, compare the market and other sites and my lowest quote is £2,400. I have pass plus certificate. Can anyone help me finding a cheap insurance company would be much appreciated.

There are lots and lots of threads asking the same questions. Have a read through the forum and you'll find some answers.

james2005

You i did have a read through the forum and still no joy so thought I would post.

Anybody else, any ideas or experiences?

iamana1ias

james2005 wrote: »

You i did have a read through the forum and still no joy so thought I would post.

That reply was to someone else's question.