Policy Set up fee

sandy700

I got the renewal for my home and contents insurance and since it was almost the same as last year I was ready to click on renew until I saw

Policy Set-up Fee (non-refundable) £20.00..

So off to confused dot com or compare the market

Do they still do the Halfords £20 bribe?


 

dunstonh

So off to confused dot com or compare the market

Why would an explicit fee in place of commission (or reduction in commission vs full commission) be a reason not to do it?

Often, explicit charging is cheaper than commission.  If the bottom line is cheaper then don't worry about it.  If its more expensive and the alternative is equal or better quality then go with that.

sandy700

I got the quote last year from confused .com  and got a £20 Halfords voucher.
This year the quote from confused .com is the same as my renewal quote  and I will get £20 Lidl voucher so £20 cheaper for the same insurance than renewing direct.

bioboybill

I got the same thing for my home insurance renewal, which I thought was a mickey take. Not only that, but when I went on comparison sites my insurer was offering the same policy £30 cheaper if I was a new customer, which as far as I know isn't allowed now.

dunstonh

I got the same thing for my home insurance renewal, which I thought was a mickey take.

Why is it a mickey take to have an explicit fit in place of an implicit fee?

Not only that, but when I went on comparison sites my insurer was offering the same policy £30 cheaper if I was a new customer, which as far as I know isn't allowed now.

That is allowed.

bioboybill

dunstonh said:

I got the same thing for my home insurance renewal, which I thought was a mickey take.

Why is it a mickey take to have an explicit fit in place of an implicit fee?

Not only that, but when I went on comparison sites my insurer was offering the same policy £30 cheaper if I was a new customer, which as far as I know isn't allowed now.

That is allowed.

Is it? I thought they had to offer the same price if a new customer or existing. That's what I read from Martin Lewis on here.

dunstonh

bioboybill said:

dunstonh said:

I got the same thing for my home insurance renewal, which I thought was a mickey take.

Why is it a mickey take to have an explicit fit in place of an implicit fee?

Not only that, but when I went on comparison sites my insurer was offering the same policy £30 cheaper if I was a new customer, which as far as I know isn't allowed now.

That is allowed.

Is it? I thought they had to offer the same price if a new customer or existing. That's what I read from Martin Lewis on here.

No.   They cannot offer a different price on the same product version retailed via the same distribution channel as where the plan was originally bought.     

If the plan is a different version the price can be different.
If the plan is retailed via multiple distribution channels, then each of those channels can have its own price.

e.g. the price, if bought via the provider, can be different to the price on compare the market which can be different to the price on Moneysupermarket and so on.

bioboybill

Thanks. So I was wondering whether I could just not auto-renew direct and go through a price comparison site to get it cheaper, or whether that wouldn't be allowed?

dunstonh

bioboybill said:

Thanks. So I was wondering whether I could just not auto-renew direct and go through a price comparison site to get it cheaper, or whether that wouldn't be allowed?

If you bought the policy originally via that comparison site then the renewal price should match the price on the same comparison site now, assuming the policy version is the same.  If its not, you should ask them to match.

If you bought the policy originally via a different comparison site or direct with the provider, they are not required to match.

The reason is that comparison site A may take x% commission and the premium reflects that.  Comparison site B may take y% commission and the premium reflects that.  So, it may not be the provider that is the cause of the price difference but the comparison site.

thriftyswift

Not only that, but when I went on comparison sites my insurer was offering the same policy £30 cheaper if I was a new customer, which as far as I know isn't allowed now.

That is allowed.

The price offered to a new customer has to be the same at the point of generating the renewal, but as prices change daily you may subsequently find a cheaper price as a new customer so I think that's tripping up some people. (Source: i work for an insurance company and this is how they explained it to us when the change went in)