Green Flag admin and arrangement fees

DanJd_2

Green Flag have recently written to me to say there is possible change in the arrangements for breakdown insurance. It's an administrative change, the cover itself remains in place.

The change is that Green Flag Limited will be arranging and administering the cover, instead of UK insurance Limited (UKI) as at present. UKI will continue to underwrite the insurance. They say Green Flag will be able to "do all of the important admin work..... and offer a wider range of services."

So far so good. I've been with Green Flag for a few years and generally been very happy with the, both administratively and for actual cover. But reading through the consent form online, I noticed that they propose to charge a one off admin fee of £22-28 depending on the cover selected. This feels like an imposition.

Am I being unreasonable? What happens if I do not consent and leave things as they are? I can't see any description of the "wider range of services" they Green Flag will be able to offer and while it's not a huge amount, it rankles that they should be charging me when the administrative change is proposed by them.

AdrianC

This is for your existing cover? Not for renewing?

DanJd_2

Bit of a mix and match I think. This is from their online consent form:

"We will charge an arrangement and administration fee for the services we provide. This fee is not payable until you take out the breakdown policy we have arranged for you."

So I won't be charged until I renew, (some months away). On the other hand I've renewed this policy before and there has been no fee payable. It appears that the charge is applied IF I consent to the breakdown insurance changes that Green Flag have decided are worth making. It's not clear what any of the advantages or "wider range of services, both in an out of a breakdown" are.

DE7

Was it this letter (see below)? It's very confusing (to me anyway), even after reading it a few times. I _think_ the point is that the change will allow Green Flag to (i) operate more efficiently by cutting out U K Insurance Ltd (UKI) from all bar the underwriting, and (ii) market a wider range of products to me? In which case there's nothing in it for me. Also, while the text implies that Green Flag Ltd and UKI are separate entities, the letter header indicates it's from Green Flag whereas the text says "... by us at U K Insurance", so which entity is the letter from?

groovygav

I came here looking for an answer to the same question. The letter and the email all look very friendly, and "nothing will change except we'll take over the admin", but when I clicked through and read about this charge I got very confused. Is this additional to the normal annual charge, or is it part of what we've always paid, but revealed here for transparency? I can't see any benefit to agreeing to this. Is that because there is none, or because I'm not smart enough to work it out?

Frozen_up_north

I also came here wondering if others were as confused as I am.

My Green Flag cover runs until March 2022, at that point I may switch to another breakdown provider. So, if I understand correctly, I ignore the email and the existing cover runs until March, then I shop around for cover.

As Manuel from Fawlty Towers would say… ke?

mkcj

Found this thread while searching.

We have also received this letter a while ago.

He have not agreed anything yet, our cover runs out in December.

Has anyone anymore information about this annual admin fee?

Very grateful for any advice.

Thank you.

sheramber

I have just   taken  out Green Flag and it is underwritten by UK insurance.

TicketsPlease11

So the Admin and Arrangement Fee (or AAF) is the fee for GFLTD to administer and arrange your policy. UKI still underwrite, but Green Flag Limited arrange the cover.

Your price won’t just shoot up and you shouldn’t see it as an normal ‘admin fee’ as it’s much more than that. It’s incorporated into the full single payment.
Bonus: This means no more fees to cancel if you cancel before your 12 months is up!

JJ_Egan

Green Flag __ Direct Line _  UK Insurance .

Not received any of this since OP in April even renewed in June .