I need some advice.I sold my car two months ago,& canceled my insurance at the time.The insurance company is named after a {deleted} .I'm sure you can guess the rest {Although you haven't specificcally named them, the clues you gave still break the no naming shaming rules of this site - hence the deletion because you are acusing them of ripping you off - DD} ..When I canceled,I returned my Insurance certificate,& phoned them to confirm cancellation,&stop payments.They forwarded me a letter to confirm cancellation,& proof of NCB.
Now out of the blue they are asking me for money to pay an undisclosed admin charge!They have threatened me with legal action.If I don't cough up.There is nothing in my policy about this,& nothing was said at the time of cancellation.Can they do this legally?
Steve.
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i have to pay £25 if i cancel before my year is up., i was clearly told this on the phone by the insurance guy so i dont have a problem, (i am with endsleigh) but if they have not disclosed this to you then it is not fair. How much is it? if its small then i would pay as one day they might be the cheapest insurance company for you to go with, and they might refuse you because you how them x amounts. But then again you have the whole principal thing..........................
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Thanks for the reply.It's the same amount £25.00,not a huge amount ,it's true.But why didn't they say this at the time of cancellation.There is no wording in my policy about this.It just says they can charge an admin fee for canceling in the first 14 days of the policy.I canceled after nine months.The letter they sent me is written in blunt terms,& is quite threatening.I just don't like being taken for a ride!
Steve.
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>>I just don't like being taken for a ride!
You probably haven't been.
Short term rates would tend to suggest that 100% of the premium is payable after 9 months or so. I'd guess you were paying in 12 equal payments, and therefore you had more cover than you paid.
However, if you're getting threatening letters I would guess that there is a broker involved. If so, ask to see the original endorsement from the insurance company showing the premium charge.
If it is not a broker and in fact an insurer, then a letter of complaint explainin gthat you feel that you have been threatened and intimidated should normally sort it out.
However, if they choose to pursue, you are probably liable for the amount. Its just unusual for them to try so hard in these circumstances.
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standard practice..
mandy in accounts has to procur your cancelation details and tracy has to type them and send them to you with the 39?pence stamp and the 4 pence envelope.......
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standard practice.. mandy in accounts has to procur your cancelation details and tracy has to type them and send them to you with the 39?pence stamp and the 4 pence envelope.......
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Good value then eh! What I want to find out is can they threaten me with legal action,&demand money.When I have done everything by the book,& no one has told me by either spoken or written word.That I would have to pay a fee upon cancellation.Can they do this?
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agree to pay it......... but include your own invoice for the same amount, for your admin costs......... don't send the money and inform them that as your two bills match,shall you call it quits.... if not they must send their remittance to you first, before you send yours in
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Seems that insurance companies will levy and 'admin charge' for any kind of change to a policy (reg. change, cancellation etc etc) - they do it because they can. I must say that Ins Co's are one of my pet hates. I have had trade insurance with a number of co's over the years and hassle with them all.
I once made a small claim on my household insurance a few years back - got a payout, but with an 'admin charge' deduction - which seems very odd!
Anyone notice car supermarkets doing this? I saw one advertising cars with a footnote saying that an 'admin charge' of £65 would be added to all sales!! I would have thought that it was part of their cost of doing business and should be included in the price.
Another company I deal with (a big tow-bar supplier based in Nuneaton) make a hefty shipping charge if they send the towbar out to you (fair enough) - but if I collect a towbar then they levy a £10 'collection charge'. Bascially there is no way you can buy the bar at the price they list.
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I downgraded my bike policy from a group 16 to group 13 bike last year, and duly phoned the insurance company (a well known specialist broker) to notify them of the change of vehicle.
I was informed that a premium refund of £94 would apply, to take account of the reduced risk. Bargain! I was then informed that an admin fee would be deducted from this refund, and this would be £80. Two weeks later I received a cheque for £14!
When I queried this, I was told to refer to some obscure subsection of my policy wording (in 8 point font) which did indeed make allowances for these charges.
I accepted this grudgingly, and when the renewal came up, I returned my renewal quote with a polite, but firm "I wouldn't deal with your company again if my life depended on it" with a full breakdown of the reasoning behind my decision, and took my business elsewhere.
They also lost the car policy when that came up for renewal 2 months later. Their greed cost them £700 worth of business - who lost out in the end?
In my experience, insurers rarely pass up the golden opportunity that mid-term policy changes present to them to give you a sound rogering. Just hit them where it hurts - don't ever re-insure with them, and advise anyone you know (on a one to one level) to do the same.
Cheers
DP
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>>phoned the insurance company (a well known specialist broker)
Firstly there is a distinct difference between broker and insurer. Typically insurers have much less to do with administrative charges than brokers do. Also, where an insurer does charge an admin fee there is normally some science involved rather than just stripping out what they think they can get away with. Ask to see the policy endorsement which must exist and which you must be given, which will normally show the actual premium adjustment before the broker has had a pop at it.
cheque for £14
So they got £70. At 10% commission that's the equivalent of a £700 premium but without the irritating cost of dealing with customers and their support requirements.
>Their greed cost them £700 worth of business
Or, perhaps, £70 of commission (although in reality it could be between £35 and £140)
- who lost out in the end?
You. Sorry.
But you paid out the premium to someone else (including their commission) AND you paid the £70.
In my experience, insurers rarely pass up the golden opportunity that mid-term policy changes present to them to give you a sound rogering
Well if you changed insurers to brokers then I would have to agree.
>>don't ever re-insure with them, and advise anyone you know (on a one to one level) to do the same.
Absolutely.
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Sorry, I understand the difference between broker and insurance company, and yes my argument was probably with the broker.
Thank you though for your helpful explanation as how my hard earned is divided among the various parasitical levels of this legalised racketeering outfit.
Cheers
DP
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>>the various parasitical levels of this legalised racketeering outfit.
I wouldn't argue with that, but I'm afraid that we positively encourage them.
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