Charged for cancelling new insurance?

lisyloo

Instead of someone paying a £54 admin fee and someone else paying £15

The only explanation I have is that they have changed their charges (not an annual inlfationary increase but a change in charging structure) and one of you did it before and one after.

Obviously it's a big difference but it's no different to buying an apple one day and finding the price has changed the next.

You may not always agree with the charging structure of every private company you deal with.
All you can do is some research to try and pick companies who generally treat customer fairly.

Out of interest, was fairness, service and cover part of your research up front or did you just pick the cheapest premium?

Ialwaysgetdone

lisyloo wrote: »

The only explanation I have is that they have changed their charges (not an annual inlfationary increase but a change in charging structure) and one of you did it before and one after.

Obviously it's a big difference but it's no different to buying an apple one day and finding the price has changed the next.

?

As I have already explained, they charge one twelfth of your annual premium as an admin fee. My son paid £54 which was one twelfth of his annual premium and I was charged £15 which was one twelfth of my annual premium, I am saying why should he be charged more than me or why should I be charged less than someone else?

You mentioned the airlines and baggage - if you had the same weight of baggage as the person sitting next to you on the flight but the airline charged you £50 for yours but only charged the other person £15 for theirs simply because you had paid £400 for your flight while they got theirs for a fiver then I doubt you would be too impressed.

Out of interest, was fairness, service and cover part of your research up front or did you just pick the cheapest premium?

See my post at 11.52am

pborojon

Ialwaysgetdone wrote: »

As I have already explained, they charge one twelfth of your annual premium as an admin fee. My son paid £54 which was one twelfth of his annual premium and I was charged £15 which was one twelfth of my annual premium, I am saying why should he be charged more than me or why should I be charged less than someone else?

You mentioned the airlines and baggage - if you had the same weight of baggage as the person sitting next to you on the flight but the airline charged you £50 for yours but only charged the other person £15 for theirs simply because you had paid £400 for your flight while they got theirs for a fiver then I doubt you would be too impressed.



See my post at 11.52am

Who charge 1/12th of the annual premium? I would be fairly confident that this includes an element of premium risk adjustment.

lisyloo

I am saying why should he be charged more than me or why should I be charged less than someone else?

In a perfectly fair world he shouldn't be charged more.
I agree.
It's not fair.
Not everything in life is fair.

All I can suggest is that you read the contracts up front and don't take one that you find objectionable.
I find these days that I can usually check out the policy beforehand via a pdf on the web rather than wait for a policy through the post.
We all have to compromise sometimes though as there are many other factors in chosing a policy, but if you have a real objection then you do have the option of not taking that particular policy and not doing business with that company.
You don't have the option of dictating their charging policy, just choosing not to deal with them.

Ialwaysgetdone

It was Mint

Ialwaysgetdone

lisyloo wrote: »

In a perfectly fair world he shouldn't be charged more.
I agree.
It's not fair.
Not everything in life is fair.

All I can suggest is that you read the contracts up front and don't take one that you find objectionable.
I find these days that I can usually check out the policy beforehand via a pdf on the web rather than wait for a policy through the post.
We all have to compromise sometimes though as there are many other factors in chosing a policy, but if you have a real objection then you do have the option of not taking that particular policy and not doing business with that company.
You don't have the option of dictating their charging policy, just choosing not to deal with them.

OK I give up

lisyloo

OK I give up

I have agreed with you so I am perplexed as to why you see exasperated

Anyway if you are still reading I just wanted to let you know that someone on another thread has suggested the exact oppostite to you
i.e. that it would be fairer to charge fees as a % of the policy rather than fixed fees.

Hence I'm sure you can see that it is absolutely impossible for insurance comapnies to please everyone.

Ialwaysgetdone

pborojon wrote: »

Who charge 1/12th of the annual premium? I would be fairly confident that this includes an element of premium risk adjustment.

It was Mint but my Direct Line home insurance also states they charge one twelfth of the premium