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Car Insurance Arrangement fees - price comparison sites should have option to exclude

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Brand
Brand Posts: 88 Forumite
Part of the Furniture 10 Posts
edited 14 July at 12:09AM in Motoring
1st Central charges an additional fee of £50 to set up a policy.  yet this does not show up in price comparison. 
It would be good if price comparison site result lists   allowed users to exclude such companies in the results list, or, at the very minimum, to work with the full price including any such compulsory introductory charges.

Comments

  • facade
    facade Posts: 7,614 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I didn't realise this, seems rather naughty to exclude a compulsory fee, which is part of the price.

    When I go to the Meerkats or whatever, I ignore the ones that are suspiciously cheap anyway, unless they are a known brand who are giving an outlier quote to get my business.

    I pick a company that I recognise from the lower end of the clump.


    A £50 fee (or even more) explains why there can be such a gap between the no-names and the herd.


    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Brand said:
    1st Central charges an additional fee of £50 to set up a policy.  yet this does not show up in price comparison. 
    It would be good if price comparison site result lists   allowed users to exclude such companies in the results list, or, at the very minimum, to work with the full price including any such compulsory introductory charges.
    They do?  Get the same price after clicking through as the aggregator showed, it's just more broken down on their site. 
  • Brand
    Brand Posts: 88 Forumite
    Part of the Furniture 10 Posts
    DullGreyGuy 

    well if you are right, then I am wrong and apologise for misinforming.

    I got to the very end of the 1st Central process, then it said: There is a £50 arrangement fee, 

    so I stopped there and 

    sought other quotes from other companies (which were of course another £100 or so p.a.)

    In the list of "What's included" it doesn't mention arrangement fee.

    (The only time I've ever encounted an arrangement fee for car insurance was long ago using a high street broker, (a charge which is what you'd expect )
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Brand said:
    In the list of "What's included" it doesn't mention arrangement fee.
    There are many ways to skin a cat and equally different ways an intermediary can make money by selling insurance. Some charge an arrangement fee, some take higher commissions, some have profit share arrangements etc. Some want to make their money on the sale of the insurance, some will take less on the sale but make more via mid term adjustment and cancellation fees. Some partner with accident management companies so have a good revenue from claims. 

    A company has to say if asked what the various fees and commissions are, some will tell you without you asking. However profit shares are naturally difficult to say at the point of sale as normally they are settled 3 years later based on the total book of sales in that year and their claims experience. 
  • Brand
    Brand Posts: 88 Forumite
    Part of the Furniture 10 Posts
    Thanks DullGreyGuy that's very informative.
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