Admiral: Pay Us an "Insurance Premium Admin Charge" of £30, or Cancel Your Insurance and Pay £55

MikhailCompo

I prepaid for my insurance for the year as I always have done, in June 2020.
I made a claim earlier this year after I slid on ice and hit a wall (I live rurally). I paid the £400 excess for the claim.

Two weeks ago I received an email from Admiral stating that "As a result of this change there is an additional increase of £30. This includes an administration charge of £30."
It also stated "If you decide to cancel, the cancellation will include the cancellation fee of £55. So clearly there is no option but to pay this fee.

Can someone please explain how this is a transparent and lawful charge?
How many of these random stealth taxes do insurance companies send out?
Do they automatically charge every customer who makes a claim this additional fee? If so, why is it not part of the excess?

daveyjp

"As a result of this change..."

What are the details of the change?

dunstonh

I made a claim earlier this year after I slid on ice and hit a wall (I live rurally). 

I am only picking up on this point because I am interested what living rurally has to do with that? - it just seems a strange thing to say.

Can someone please explain how this is a transparent and lawful charge?

The wording suggests either non-disclosure on your part with revised information found out or a correction of misinformation or the settlement of the claim happening after the renewal letter had been issued resulting in a change of information. 

How many of these random stealth taxes do insurance companies send out?

It won't be random.  it isn't stealth and it's not a tax.

Do they automatically charge every customer who makes a claim this additional fee? If so, why is it not part of the excess?

It has nothing to do with the excess.  It would appear (based on the limited information you have supplied) that something about your circumstances on the renewal letter was not correct and required an amendment.

Something changed in their information but you haven't said what that change was.

Sandtree

You need to speak to the to find out what the "change" is. Given its Admiral my guess would be that you have failed to declare all modifications to the vehicle as they are in the small minority that want every mod declared, including those factory fitted.

MikhailCompo

daveyjp said:

"As a result of this change..."

What are the details of the change?

Here is the full email from them, one email is all I have to go on.
So the way I read it is they have increased my premium because I made a claim.

When you buy a policy of insurance, we take steps to ensure the cover we provide is right for you so we can support you when you need us. We recognise mistakes happen, so by validating policies we ensure a genuine oversight does not become a problem should you ever need to make a claim.

As a responsible insurer we check both internal and external databases to ensure the information held on your policy is accurate. Following a check of the information provided we have amended the following details:

Schedule of Policy Changes
We have updated the claim details for [full name].

 

The premium we charge each customer is calculated from a series of detailed statistical models derived from past claims history for similar customers. As a group, customers with both fault and non-fault incidents do have a considerably worse claims history than those without, hence the higher premium for such customers.

Our figures show that the additional premium we charge for fault and non-fault incidents is a true reflection of the increased risk we take on as an insurance provider.

As a result of this change there is an increase of £30.00. This includes an administration charge of £30.00.

This means a balance of £30.00 is due, which we will debit from the payment details we hold on file on, or shortly after, 01/06/2021. Please ensure funds are available.

Alternatively, if you do not wish to pay the additional premium, you can call us to cancel your policy based on the original terms agreed when you accepted the policy on 0330 1343 255 . If you wish to take this option, please call us by 01/06/2021. If you decide to cancel, the cancellation will include a cancellation fee of £55.00.

If you feel the information we have used may be wrong you can send us the correct data and we will update our records. To do this, follow the instructions included in this notice.

We can confirm that any change(s) to your policy will be outlined in your documents and summarised in the Schedule of Policy Changes above. The change(s) will be effective from 14/04/2021 to the 14/04/2022.

Please check your policy documents carefully and contact us if any details are incorrect. Your new Policy Schedule(s) confirms any changes to Excesses and Extra Conditions (endorsements) applying to your policy, your cover and limits.

View your documents

Please visit www.admiral.com where you'll find your policy book and information relating to any policy upgrades you may have purchased. If at any time you would prefer to receive your documents through the post, please contact us and we will be happy to arrange this for you.

For more information on why we validate policies please visit admiral.com/myaccount#questions.

If you have any further queries you can:

Call our Data Validation Team on 0330 1343 255 , Monday to Friday 8:00am to 6:00pm.
Email us at validations@admiralgroup.co.uk. Please note your full policy number in the subject of your email and confirm your name, date of birth and postcode so we can find your policy.
Yours sincerely,
Data Validation Team

dunstonh

Is this a renewal or a new purchase?   Either way they are saying that the details you gave them on purchase (or at renewal) differ from what they have been able to find out.       In this case, the claim was not declared/recorded.    And in this case, there appears to be no additional premium because of the new information although they are charging their standard admin charge to correct the information.

Jumblebumble

MikhailCompo said:

I prepaid for my insurance for the year as I always have done, in June 2020.
I made a claim earlier this year after I slid on ice and hit a wall (I live rurally). I paid the £400 excess for the claim.

Two weeks ago I received an email from Admiral stating that "As a result of this change there is an additional increase of £30. This includes an administration charge of £30."
It also stated "If you decide to cancel, the cancellation will include the cancellation fee of £55. So clearly there is no option but to pay this fee.

Can someone please explain how this is a transparent and lawful charge?
How many of these random stealth taxes do insurance companies send out?
Do they automatically charge every customer who makes a claim this additional fee? If so, why is it not part of the excess?

MikhailCompo said:

I prepaid for my insurance for the year as I always have done, in June 2020.
I made a claim earlier this year after I slid on ice and hit a wall (I live rurally). I paid the £400 excess for the claim.

Two weeks ago I received an email from Admiral stating that "As a result of this change there is an additional increase of £30. This includes an administration charge of £30."
It also stated "If you decide to cancel, the cancellation will include the cancellation fee of £55. So clearly there is no option but to pay this fee.

Can someone please explain how this is a transparent and lawful charge?
How many of these random stealth taxes do insurance companies send out?
Do they automatically charge every customer who makes a claim this additional fee? If so, why is it not part of the excess?

Was the car a total loss ?

MikhailCompo

Jumblebumble said:

Was the car a total loss ?

No, repaired and back on the road.

MikhailCompo

I have now done more digging and now realise that the policy number relates not to my current policy, but for a policy that was renewed even though I cancelled it and which the Financial Services Ombudsman is currently pursuing with Admiral.
So even though they owe me over £550 for a policy which should never have been taken out and the policy expired nearly a year ago, they still continue to take money from a credit card that has also expired.......... And this is a regulated industry??............

What an absolute joke Admiral are, complete bunch of idiots.....

dunstonh

So even though they owe me over £550 for a policy which should never have been taken out and the policy expired nearly a year ago, they still continue to take money from a credit card that has also expired.......... And this is a regulated industry??............

The expiry date does not apply on credit cards where it is a continuous payment.   They are done at the account level and don't rely on the piece of plastic.

I have now done more digging and now realise that the policy number relates not to my current policy, but for a policy that was renewed even though I cancelled it and which the Financial Services Ombudsman is currently pursuing with Admiral.

To access the FOS, you have to complain to Admiral first and wait for their outcome or 8 weeks, whichever is sooner.    With you now using the FOS, this indicates that Admiral rejected your complaint (if they upheld it, there would be no reason to refer it to the FOS).   So, what was the complaint outcome?

Sandtree

MikhailCompo said:

daveyjp said:

"As a result of this change..."

What are the details of the change?

Here is the full email from them, one email is all I have to go on.
So the way I read it is they have increased my premium because I made a claim.

The email is hard to read in this format but ultimately they are saying its because a claim hasnt been correctly declared on your policy. Now the question is if its the claim you have just had or a historic claim you had before buying the policy; I'd assume the former but you clearly need to speak to them to find out.