Norwich Union Simple Cover Car Insurance

lynxptc

Just phoned Norwich Union Simple Cover to change my address details and was charged £71.00 to do so. Didn't have a problem with that as I've moved into a higher risk area but on top of that I've been charged a £21.00 administration fee to send out new documents!

I've checked my policy and it does say in there that they charge to change details because they are a "basic cover insurance company" but is there any way of making a complaint or something to get this refunded?

My issue is that is does not cost £21.00 to change an address on a computer system and send out documents of 3 pages long maximum as you have to download the policy summary from the website!

Thanks all.

BeeUK

Unfortunately as it's part of the T&Cs you are pretty much stuck with it...it doesn't cost airlines £xx to change the name of a traveller but it doesn't stop them charging you for it!

raskazz

I am beginning to think the forum is crying out for a sticky on these issues.

You are making the common mistake of assuming that, because something can be done quickly at very little marginal cost to the insurer on an individual level that it should be given free.

This is not the case. Each and every one of the hundreds of thousands of customers who make an amendment to their NU policy each year could say that individually their transaction did not cost much.

But this ignores the fact that the customer service buildings have to be rented, heated, serviced; staff have to be paid and trained; IT technology, software and hardware has to be paid for; we could go on. All of these are largely fixed costs that are basically independent of the number of transactions made.

The costs involved in the above have simply been taken out of upfront premiums and charged for explicitly. In other words, people who use the service pay for it, which is pretty fair in my view.

lynxptc

It's exactly the same as people reclaiming bank charges. They don't think it costs the bank £35 to bounce a cheque so they want their money back.

I think it is the same with this, I don't think it costs £21 to amend an address.

raskazz

lynxptc wrote: »

It's exactly the same as people reclaiming bank charges. They don't think it costs the bank £35 to bounce a cheque so they want their money back.

I think it is the same with this, I don't think it costs £21 to amend an address.

No, it's not the same. The challenge to bank charges is that on the grounds that they are apparently a penalty charge for breach of contract. Penalty charges have to be proportionate to the cost to the bank of the breach.

Insurance admin fees are not penalties for a breach, they are fees for a service.

tinkerbell84

lynxptc wrote: »

It's exactly the same as people reclaiming bank charges. They don't think it costs the bank £35 to bounce a cheque so they want their money back.

I think it is the same with this, I don't think it costs £21 to amend an address.

:rolleyes:

Do a search. Lisyloo posts a list of everything that £21 pays for.

How do you think that website gets there? Or the phone operator you spoke to. Or their PC?

tinkerbell84

raskazz wrote: »

I beginning to think the forum is crying out for a sticky on these issues.

It has been for a long time.