Car Insurance Admin Fees

[mrs_overall]

A friend of mine has just changed his address and rang his car insurance company to notify them. It took the girl on the phone less than 2 minutes to update his details on the computer while he was talking to her. He has now been stung with an admin fee of £36.
In the small print it states the company charge an admin fee but they do not mention the cost.
He is willing to pay a nominal sum, say £10.
He only made the phone call to them last week and since then he has received a call from them on a daily basis threatening him with all sorts if he doesn't stump up £36 pronto. One of the threats was that they would make sure he was blacklisted and would never get car insurance again from any firm.
Any thoughts on this one please?

[paul1763]

i don't remember being charged these stupid admin fees before there were call centres and buying premlums over the internet, i was stung £25 admin fee by swinton last week just to renew policy starting today. Bloody rip off just to change date of policy as thats the only thing different,the way these companies rip off every client with these extortinate fees should be illegal, i think these companies are more crooked than those making bogus claims.

[factor-fiction]

Was Swinton still the cheapest option overall then, paul? Did you have to go with them?

[EDDIE51]

Beside the point, but some on this thread have said they have been with the same insurance company for years. That is a certain way to be ripped off NEVER use the same company 2 years running, that way you get the best rate every year, it can save £100s every year. Insurance companies make a lot of money by people being too lazy to search for the cheapest renewal every year, it would have cost me £400 more the last time a renewed if I had stayed with the same company.

[gingejbee]

Anyone who wants to know what they will be charged for "admin" can find out here (Which?):

http://www.which.co.uk/money/insurance/guides/how-it-works-and-what-it-covers/car-insurance-costs-fees-and-charges/

[Prudie]

Also black-cat makes a very valid point, change in address can increase the premium because all postcodes are weighted based on risk, the new address might be considered a more risky area than the old.

[EDDIE51]

I also think it may well be a misunderstanding and the fee is for a higher premium to the new address.

[gingejbee]

...but an insurance company should make it clear...what is a premium adjustment and what is an administrative charge.

[paul1763]

in answer to your question factor fiction no they weren't the cheapest but i like to go with a company iv'e heard of,also the amount of questions you go through to get a quote and then get asked the same questions if you accept didn't seem worth the hastle for the sake of a fiver or so. Having said that iv'e just been on to swinton as my car is showing uninsured on the askmid website, but was told i'm fully covered, you could hear her squirming when i mentioned that if i'm not covered on that site i would be showing as uninsured on police anpr cameras, her answer was its ok as they check with us anyway but the last thing anyone wants is a tug from police.

[Hypognosis]

Charging admin fees for a change of address notice is discriminatory against the traveller communities, surely?

[mrs_overall]

Thank you for all your answers - I had to vanish as I had things to do.

I can't remember the name of the insurance company - he did tell me but it was one I have never heard of. It might have the word "One" in it or maybe I am imagining that.

Re the comment about change of post code & change of premium - that does not apply in this case as he has only moved two streets.

I will print this off and let him read it.

Many thanks to all

[jackthehat]

That may not actually matter, Mrs_O;

http://www.thisismoney.co.uk/money/cars/article-2084839/Postcode-lottery-We-moved-175-yards---car-insurance-doubled.html

[mrs_overall]

Thanks for that jack - I will pass it on

[black_cat51]

i agree, if the new street has a worse history for cars being either vandalised or nicked, it might be an increased premium

[mrs_overall]

Eddie, it is not a misunderstanding - this is an admin fee

I doubt the change of street has anything to do with it as they are all bungalows occupied by pensioners

Once again, I thank you for your answers

[tonyav]

Are you gonna give us a clue to who the insurance company is, mrs o ?.

[mrs_overall]

I had a phone call from his wife last night. He has received a letter saying if he doesn't pay within 7 days they are cancelling his insurance, so he is going to stump up.

tony, I asked her for the name of the company and once again it has gone clean out of my head. All I can remember is that they are based in Torquay. It was not a company I have heard of before which is probably why I cannot remember it. Either that, or it is strong prescription medication I am taking lol