service charges on insurance policy

cepheus

My present insurance company came out the cheapest in the comparison list, however every time you change anything they add a service charge (I think they call it that) usually about £25 which negates any price advantage.

How common is this amongst other insurers? Do such practises together with 0870 numbers render comparison sites meaningless, or at best just a rough guide?

dunstonh

How common is this amongst other insurers?

Very. Not all do but most.

And before you ask, yes it is legal, fair and valid. The FOS generally accept that upto £50 is a fair figure.

skyler_2

In my opinion, comparison sites are a fantastic concept. They will give you a good ballpark figure as to who is coming up tops for your insurance. It is then down to you to go through the finer detail to see who suits you the best and to who actually offers the best 'deal' at the end of the day.'

I have found that there are very often 'extras' like these service charges but you sometimes don't actually find out until much later in the day, usually when you've taken out the insurance. If you insure with someone who is e.g. £25 cheaper on premium but then you need to make two amendments during the year and they charge you 2 x £25 = £50 - but the other company who was £25 more expensive at the outset doesn't charge then you probably would have been better going with the other company.

Most insurers do charge this service/admin charge and it's quite difficult to get away from I'm afraid and I speak from experience. It's always nice to know who is actually charging what though. There is a guide called www.matthewsguide.co.uk that tells you who's charging what for service charges. I can't remember but I seem to think that there is also a section in there about who uses the 0870 numbers as opposed to the 0800 freephone numbers.

lisyloo

Do such practises together with 0870 numbers render comparison sites meaningless, or at best just a rough guide?

Well it depends.
If you know you are going to have the same car, same address and same drivers then it makes little odds.

If you are expecting to move house or change car etc. then it's worth taking notice of.

0870 numbers can usually be got round by using saynoto0870.com or going through on a different number and getting transferred or calling to geographic number they give for being abroad.

But yes, as sklyer says, you need to look at finer details AFTER using the comparison sites. You need to check the cover suits you as well as the various costs.