The insurance renewal rip off

[AMGeed]

Two weeks ago my house/contents insurance was up for renewal, and now my wife's car insurance is due. In both instances I have noticed a sneaky, underhand way insurance companies are boosting their finances come renewal time.

Whether you renew or not, it appears with both Admiral and Swinton, if you decide you are going elsewhere for your cover, you will be charged £25 cancellation fee for an "administration charge"

Excuse me? I have not cancelled, I have decided not to renew. I think there is a difference, and I am in a silly argument with Swinton after telling them 10 days before renewal of house/contents insurance I was going elsewhere, yet they still took another months premium (the only insurance I pay monthly) and issued me with the policy documents.

I asked for a refund and they hit me with a £25 cancellation charge I am refusing to pay. I was then threatened with another £25 costs if I didn't pay within 7 days and debt collector was involved. Maybe headstrong, but I informed them not to wait 7 days as I would not be paying either the cancellation fee or debt collection fee. The complaint is now at head office with a senior complaints handler.
I'm just about to return Admirals policy documents received today for insurance that is due on 3/6/2015. The premium is £242 for TPF&T on a £800 banger. Direct Line quote me £133 so I will not be renewing or paying a cancellation fee.

So, you may already be aware of it, but certain insurance companies are not averse to stealing more ££ from you come renewal time should you decide another insurance company is better value.

Rant over

 

[trapperjohn]

Thanks for the heads up.

 

[renault12ts]

Just left BT and gone to Virgin...BT have charged £30 exit fee.

 

[AMGeed]

Just left BT and gone to Virgin...BT have charged £30 exit fee.

They're all at it.

 

[Markjames]

Just left BT and gone to Virgin...BT have charged £30 exit fee.

Bt changed my monthly payment from £40 to £72 with no notice and no communication. When I contacted them no one I spoke to could explain it, but neither were they willing to change it back. I then said I would cancel everything I had with them and they wanted to charge me £70 because I had 4 days left of a year contract on my broadband. I ended up complaining further and they have finally put my payment back but will still be canceling everything in the very near future.

 

[TDE1]

AMGeed

Sorry to read about this. It's bloody appalling.

You have taken the correct stance, and I would also contact the FCA. You are being charged fees on contracts of insurance which you did not agree to / enter in to. Fees are commonplace but this behaviour just boils my p*ss. The insurers will treat the policies as NTU (not taken up) and no charge will be levied on the broker.

I've been in the industry 20+ years, and have never heard the likes of it.

Keep us posted with developments (and you're welcome to PM me if they don't capitulate..).

 

[AMGeed]

^Thanks for that info Tim. That may prove very useful should I need to take this further.
I will update both events as they progress.

 

[CaptainRAVE]

That is very sneaky. I told admiral I was going to cancel and that I had found a cheaper deal. I hadn't, but got the price down from £75 a month to £42.

 

[AMGeed]

That is very sneaky. I told admiral I was going to cancel and that I had found a cheaper deal. I hadn't, but got the price down from £75 a month to £42.

Even sneakier. I wouldn't stay with Admiral whatever their price now.

 

[MD5]

Whether you renew or not, it appears with both Admiral and Swinton, if you decide you are going elsewhere for your cover, you will be charged £25 cancellation fee for an "administration charge"

Interesting. I've been quite happy with Admiral's prices over the years, but as with others, they have hiked the prices up over last few years, and then drop them if you can improve elsewhere. In my experience, they can be quite accommodating on this basis, but the pantomime is annoying.

My four car policy is due for renewal in the next week, so I'll have a good shop around tomorrow - 3 x 5 litre cars and an 84bhp Smart!

 

[MD5]

Two weeks ago my house/contents insurance was up for renewal, and now my wife's car insurance is due. In both instances I have noticed a sneaky, underhand way insurance companies are boosting their finances come renewal time.

Whether you renew or not, it appears with both Admiral and Swinton, if you decide you are going elsewhere for your cover, you will be charged £25 cancellation fee for an "administration charge"

Excuse me? I have not cancelled, I have decided not to renew.

I've just come off the phone from Admiral, who I've been with for about nine years now, and my insurance is up for renewal on the 26th. In applying other "loyalty" bonuses, I have saved £165 on the £967 they were initially quoting for 2 SL500s, an E500 estate, and a two year old Smart Cabrio, all fully comp protected with my other half as a named driver. I could probably save a little bit if I put the SLs on classic policies, but I'm happy as I am at the moment.

I specifically asked about the £25 cancellation charge, mentioned above. They only charge if you cancel up to fourteen days after the renewal date of your policy, and £49.50 if you cancel between fifteen and twenty eight days after. Therefore it is deemed, if you don't notify them before the renewal date, that you are accepting their price, and they put your insurance in place. If, however, you tell them before your policy expires that you will not be renewing with them, there will be no charge.

In one way, if you forget to renew, but weren't insuring elsewhere, it's good to have the peace of mind that you have two weeks grace, effectively, and this has been the case for many years with other insurers also.

AMGeed, I'd just let them know you will not be renewing, to save the agg of a £25 "fee", whether it's enforceable or not. I'm sure the forum will be littered with stories of Insurance companies that charge for policies that have been put in place by assumption, rather than request, and then cancelled, but I don't know what the legal position is!

 

[tron]

Hastings. Today. Quote from Money Supermarket £172. Renewal paperwork £231 including £20 for administration. 33.6% added on because I wouldn't notice. They got a phone call and matched the quote. (The alternative would have been to pursue them for fraud.)
That is what it is, a deliberate attempt to cheat their customer. Fraud. And I have had to agree that my card may be used to renew with. That will not be happening. New card is on its way.

 

[AMGeed]

^ Hmm My insurance is due in early July and currently with Hastings Direct.
I will be checking the comparison sites to see if they are matching or higher.

Wife contacted John Lewis today and a new card is being issued. No chance of Admiral taking money from there now. Letter and documents returned to Admiral today as well.
Lets see if they want to charge for a cancellation.

 

[AMGeed]

I've just come off the phone from Admiral, who I've been with for about nine years now, and my insurance is up for renewal on the 26th. In applying other "loyalty" bonuses, I have saved £165 on the £967 they were initially quoting for 2 SL500s, an E500 estate, and a two year old Smart Cabrio, all fully comp protected with my other half as a named driver. I could probably save a little bit if I put the SLs on classic policies, but I'm happy as I am at the moment.

I specifically asked about the £25 cancellation charge, mentioned above. They only charge if you cancel up to fourteen days after the renewal date of your policy, and £49.50 if you cancel between fifteen and twenty eight days after. Therefore it is deemed, if you don't notify them before the renewal date, that you are accepting their price, and they put your insurance in place. If, however, you tell them before your policy expires that you will not be renewing with them, there will be no charge.

In one way, if you forget to renew, but weren't insuring elsewhere, it's good to have the peace of mind that you have two weeks grace, effectively, and this has been the case for many years with other insurers also.

AMGeed, I'd just let them know you will not be renewing, to save the agg of a £25 "fee", whether it's enforceable or not. I'm sure the forum will be littered with stories of Insurance companies that charge for policies that have been put in place by assumption, rather than request, and then cancelled, but I don't know what the legal position is!

Thanks Mike.
I will see what happens re a cancellation charge with Admiral, but if it is as you say then I should be OK. I raised this because of the ongoing situation I have with Swinton and their house/contents policy renewal. That is ongoing with a cancellation charge being made despite them being told 10 days before renewal I wasn't renewing.