Policy Setup fee - Ageas Car insurance Charge - Beware

sidneyyoungblood

Advice needed: Ageas car insurance policy setup fee before policy start date

A bit of advice please .

Last week, while waiting to hear back from my current car insurer about my renewal, I decided to use one of the big comparison sites to see what other deals were available.

I found an Ageas quote panicking a bit as the site said the offer was only valid until the end of the day, so I went ahead and signed up.

The following day, my current insurer got back to me, answered my questions, and offered me a better deal. I contacted Ageas straight away and explained the situation, asking if the policy could simply not go ahead as it had not yet started.

They told me that payment had already been taken and that if I cancelled, I would have to pay a £20 policy setup fee, which is mentioned in their terms and conditions.

I had assumed that because the policy had not started yet, I would be able to cancel without any charge. However, Ageas have said the setup fee applies both before the policy starts and during the 14-day cooling-off period .

I raised a complaint, but the response was essentially the same. The person dealing with it said they understood why I felt it was unfair but said they were unable to waive the charge.

I feel its unfair that I’m being charged a setup fee for a policy that has not even started, and having the payment taken straight away even though the policy would start 4 days later.

Has anyone had a similar experience with Ageas or a similar insurer? Do you think it’s worth taking this to the Financial Ombudsman Service.

Thanks in advance for any advice.

rsvtoddy

Technically they can charge a 'small' admin fee which is what they doing

https://www.citizensadvice.org.uk/consumer/insurance/cancelling-an-insurance-policy/

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82084023#Comment_82084023

Thanks , i thought it would be after the policy had started .

daveyjp

The work to open the account had taken place, so costs have been incurred, when the policy starts is of no consequence.

It is the same reason you don't get booking fees refunded if an event is cancelled before it takes place. Whoever handles the booking has their costs to cover.

sheslookinhot

What rules would the Ombudsman deem were broken ? Most likely none.

You’ve wasted the time of an Insurance company, now you want to waste the time of the Ombudsman?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6677862/policy-setup-fee-ageas-car-insurance-charge-beware

The regulations require them to offer a cooling off period, the regulations dont require it to be cost free to cancel in the cooling off period. Regulations however do require the charge to be proportional to the costs incurred.

A long time ago a client responded to the FSA, as it was at the time, now would be the FCA, on the cost of selling a policy both as new business and renewal which absolutely dwarf the £25 cancellation fee that they charged. At the time it was deemed £50 was certainly likely to be defensible but anything higher would need scruitany.

Part of the problem is that the FCA sees that a flat fee is much more transparent and easy for consumer to understand then a highly complex fee structure that depends on how you bought the policy etc hence everyone pays a blended average for simplicity so the £20 is an average of all the software fees, marketing costs, call centre time, HR to support the call centre etc not your personal cost.

Ultimately you have a right to go to the ombudsman if you are feeling petty, it will cost Aegis significantly but the Ombudsman will not uphold your complaint.

Arunmor

Buy in haste, repent at leisure. You should get your renewal about 3 weeks before your policy espires, that is the time to get quotes. You'll know better next year.

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82084854#Comment_82084854

Thanks , I did put the renewal qoute in 3 weeks beforehand in a comparision site but when I came to buy it through the site closer to the start date they had expired . Pretty sure the last time I used a site it held the prices from when I got the qoute till the start date of the policy

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82086546#Comment_82086546

Each insurer sets how long they will honor the quote for, historically many used to go up to 28 days but in recent years, and particularly those quoting via aggregators, they have significantly shorterned the window with some only being prepared to honour the quote that day.

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82086986#Comment_82086986

thanks , that is what caught me out as when I went to buy the original ones from 3 weeks previous had expired and Ageas was the cheapest but gave me a 24hr deadline to buy so I panic bought .