Insurance Admin fee for changing the vehicle?

lisyloo

So, are you making a complaint or taking them to court?
or do you not think the case is strong enough?

Just wondering what you decided to do.

sandoz

Unfortunately, Bartman, I've been there myself. A couple of changes to my policy. These being; a change of car and a change of driver, and charges £40. I was really annoyed. I read the terms and conditions and yes the charges were in there, in very tiny print but nevertheless they were in there. I like most people, don't have the time to read ALL smallprint but do expect to be treated fairly and expect admin charges, bank charges, credit card charges etc. to be reasonable and fair.

Lisyloo mentions www.matthewsguide.co.uk and this is certainly worth taking a look at. I also have no connection but can recommend it as i've subscribed to it and received a free Legal Protection too, as the offer is still on at the moment and you will see from the Matthews Guide that Legal Protection can be sold for as much as £30. You can see quite easily the charges that Insurers add on for different things and there is quite a range of charges. The Matthews Guide states quite clearly that the average cost for an admin charge is £17 so, on that basis, Adrian Flux at £37 is more than double the average!

These admin charges could be influencial in your final decision as to who you place your insurance with. For example if you know that there is a good chance you might change your address, vehicle etc., you can take the admin charge into consideration, which may affect the competitiveness of the quote.

lisyloo

a change of car and a change of driver, and charges £40. I was really annoyed

Did you do anything about it?

Personally I don't think these charges are that bad, but what puzzles e is why people don't pursue these matter through the complaints procedure and the ombudsman.
If you are right about them being unfair you will win and it won't cost you anything (except envelopes, stamps and time).

I don't know what it is, but if I'm sure I'm right then I complain.
I've done it 6 times and I've wom 6 times.

I just don't get it, why people who claim to be very sure of their posistion and very "annoyed" just let it drop.

The only explanation I can come to is that they aren't as sure of their posistion as they claim to be and won't "put their money where their mouth is" (so to speak), otherwise it beats me why you guys just seem to let it go.

I'd love to see atest case on this to settle it once and for all and then perhaps we'd have guidelines for these costs.

Obviously there may be some companies (say in London) who have higher costs than other companies (e.g. those in the north of England).

dunstonh

Personally I don't think these charges are that bad, but what puzzles e is why people don't pursue these matter through the complaints procedure and the ombudsman.
If you are right about them being unfair you will win and it won't cost you anything (except envelopes, stamps and time).

The FOS reject complaints on these though so its pointless. The only time they have upheld the complaints if refunds are involved which are not fair or the fee is daft (remember the amount you pay often includes an admin fee and a revised insurance premium due to change in risks). An admin fee of £50 or less is likely to result in a rejection of complaint.

I'd love to see atest case on this to settle it once and for all.

One of the FOS publications has it mentioned as a case and it had a refusal. I will dig it out later and copy and paste the info.

lisyloo

The FOS reject complaints on these though so its pointless.

Ok, but the option of the insurers complaints procedure is there and so is the small claims court.

Personally I think some people are wrong about these fees being unfair.
However if they really genuinely disagree then I'm suprised that not one single one has won a case.

Of course I'm throwing down the gaunlet because I believe these fees can be justified, it's just the individuals concerned are not necesarily familiar with the costs of running a business e.g. pensions, sick time off, compassionate time off, toilet time off, employers NI, employers liability insurance etc. etc.

sandoz

I personally think that people should be made aware of all costs up front, and yes I did complain, I was informed the charges were across the board non- negotiable, how can a fee of £40 be justified to type a few word's into a computer, I now know more about the charges and won't make the same mistake again, while I do understand there is a cost in running a business there surely has to be a sensible and most of all affordable solution.

lisyloo

how can a fee of £40 be justified to type a few word's into a computer

Your share of the costs including

staff time
their pension
their tax & NI
time off e.g. sick, holidays
their training
their manager
their desk & chair
hardware
software
rent
electricity
employers NI
employers liability insurance
paper, stamps, ink & printers
costs of storage of paper, stamps, ink & printers
costs or ordering paper, stamps, ink & printers
share of costs of daily royal mail collection
their share of payroll costs
their share of office cleaning costs
their share of kitchen equipment costs
their share of health & safety costs e.g. provision of fire extinguishers
their share of training for fire marshals and first aiders
their share of hygiene provsision e.g. paper towels, loo roll, sanitary disposal
admin costs for processing your payment
fees e.g. visa for your payment
time off for company meetings
time off for fire drills
share of business rates
etc.

This isn't a definitive list and I've probably forgotten some things but hopefully you get the gist of it.

while I do understand there is a cost in running a business there surely has to be a sensible and most of all affordable solution

From the insurers point of view the above is both legal, justifiable and sensible.
You are paying for your fair share of the admin costs.

Now if you can justify to me why that little lot (plus any other things I've forgotten) should be a lot less than £40 then I'm prepared to listen, but everything that person uses e.g. coffee cups, and loo paper has to be ultimately paid for and you need to pay for your share (even if weekly loo roll pro-rata for 5 minutes work is very small).

As another customer that does not make changes, I do not want it "included in the service" as I don't want to subsidise you - no offence, but why should I?

raskazz

sandoz wrote: »

I personally think that people should be made aware of all costs up front, and yes I did complain, I was informed the charges were across the board non- negotiable, how can a fee of £40 be justified to type a few word's into a computer, I now know more about the charges and won't make the same mistake again, while I do understand there is a cost in running a business there surely has to be a sensible and most of all affordable solution.

You are made aware of all costs up front.

The 'affordable solution' already exists - if you want cheap premiums you will have to pay for service. You cannot expect insurers to strip out the costs of policy administration from the upfront premium but then not charge for policy adjustments.

You appear to want to have your cake and eat it.

losgiganteskid

raskazz wrote: »

You appear to want to have your cake and eat it.

Pray tell me - what IS the point of having your cake if you CAN'T eat it ??

sandoz

Well I really don't think so, but what I would like is a real breakdown of all additional services, cost's etc., before taking out the policy ie; what's the charge for changing my car, and why most insurers prices differ, what's the charge for changing my name, and so on.

The cheap insurance you refer to is not so cheap when you come to change any aspect of your insurance policy.