Hello there,
I recently recieved the renewal papaerwork for my car insurance broker. Reviewed the docs and gave the company a phone call. Verbally agreed to renew based on a revised price and left things like that. My insurance by the way expires at the end of the month so I had 5 days before it officially kicks in.
Now I've had a change of plan and have decided to cancel the insurance before it is scheduled to kick in as I intend to sell the car before then. I called the insurance broker and they have told me that I must pay a £40 fee due to cover their admin fees so far because I've verbally agreed to proceed with the insurance.
My question, do I have to be forced into paying this fee?
Edited by Pugugly on 24/04/2009 at 17:31
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Hope someone knows a loophole for you.
I was caught out once, in that in the space of one phone call I renewed and made a small change to a detail. Because I did it in that order (I'd forgotten about the small change), I ended up incurring an admin fee.
Changed to someone else the following year!
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" all calls are recorded for staff training....."
Did you agree to the admin fee, verbally whilst on the phone ?
If not, tell them to take a hike.
I am sick of insurance companies asking for an ' admin fee' whilst renewing existing policies.
Tesco don't ask for an admin fee when they take your money via card or cash at the till so I don't see why they should.
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Well.... when i rung up trying to cancel the guy told me "we told you, you would incur a charge for policy changes" and "that it was recorded that you agreed".
I have to admit, I automatically switch off when I hear these annoncements...
still think its unfair to charge though
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OK - scenario. You ask a tradesman to do a job. He does it. Later that day you decide you didn't want that job doing after all. You tell the tradesman you don't want to pay him. What do you think he feels about that ?
Edited by Humph Backbridge on 24/04/2009 at 10:47
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I've had this sort experience with a certain firm, where my insurance agent wrongly transferred my details to the company. When I phoned to correct this they insisted that I pay £90 for admin and the fact that my years of no-claims was 5 and not the incorrect 9.
The agent had to pay this in the end since it was his fault.
A further minor typo was also chargeable at £30.
What is actually happening here is that companies lower the initial rate to get the business, but charge hugely for any and every minor change, to claw back some ££?s.
A lot of insc companies are actually owned by banks??makes you wonder..!
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Whilst I agree with mustangman that many insurance companies are following the "RyanAir" way of charging - low headline rates & high fees for any amendments, in the case of car insurance there is some justification:
Lots of (most?) people do not bother to check out alternative insurance providers & costs until the day of renewal. They then "verbaly agree" ie BUY over the phone and renew, thus ensuring they are covered. They THEN, shop around.
It is, to relate a well known ruse, like buying a dress from M & S on a Saturday morning, wearing it for a do that night, then returning it on Monday saying it isn't suitable. Well, M & S may not object, but I sure would & I don't see why my insurance premiums should increase because of this common & deceitful practice.
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