Change of address

[JeffW]

Hi

 

My car insurance company has just charged me £45 because I changed address and they needed to put my new address on their system. Would it be worth pursuing them over this in the small claims court, on the grounds that it doesn't cost them £45 to spend 10 minutes talking to me on the phone and send me out new documentation?

 

Also, if I were living in an area where premiums are higher than they were at my previous address, they would have charged me extra. However, I suspect that I am living in an area where insurance costs less, as they've said I won't be paying any extra. Again, is that something I can sue them over?

 

Thanks

 

Jeff

[renegadeimp]

You can try, but you'd need to check the terms and conditions of your policy. 45 isnt as bad as some insurers which charge 75-150, simply for changing your details on the database and sending out new docs.

[JeffW]

Thanks.

 

I imagine there's something in my t&c's that says they can do this. However, I wonder if it's unlawful for the same reasons excessive penalty charges are, i.e. it doesn't reflect the insurance company's costs.

 

Jeff

[renegadeimp]

Could always contest them, but they normally reserve the right to cancel the insurance.

[BRIGADIER2JCS]

The Policy and certificate have to be amended and the new data provided to the authorities quite a procedure I'm told.

Very unlikely you would get any redress on this.

[unclebulgaria67]

The Policy and certificate have to be amended and the new data provided to the authorities quite a procedure I'm told.

Very unlikely you would get any redress on this.

 

Agree. Annoying these charges, but legal and can be justified.

 

What people don't realise is that Insurers use the charges to partly cover the costs of having expensive call centres, with staff available normally 8am to 9pm Mon-Fri and Sat 8-6 and Sun 10-4. If people want their Insurance company to be available 7 days week and to provide a service, this has got to be paid for.

 

Insurance companies at the moment are not doing that well. RSA have been in the news recently, as they allegedly did not have enough money in their accounts to cover potential costs.

[SuperVillain]

Insurance companies at the moment are not doing that well. RSA have been in the news recently, as they allegedly did not have enough money in their accounts to cover potential costs.

 

And then there was the whole RSA repair furore - I remember when I worked for *unnamed multinational insurer* being told not to pay any RSA claims particularly those under RIPE...

 

Although nothing came of Allianz and Provident's allegations of them charging for repairs never carried out... that issue doesn't appear to have been considered in the Court of Appeal's Judgment...

 

They are one company I'd never buy insurance from.

[manofmystery]

Is this a £45 admin charge? Or is the new address a higher risk area and so you are paying an additional premium? I moved 3 times in one year so I can feel your pain, any such charge would be written in to your policy documents.

 

it doesn't cost them £45 to spend 10 minutes talking to me on the phone and send me out new documentation?

 

Bare in mind, that they have to update various systems, send documents out. Also take in to account that the cost of the call center and the person you spoke to.

 

Motor insurance doesn't make a huge amount of money at the moment so unfortunately they use admin fee's as well.

 

 

In terms of a small claims court, I personally wouldn't bother.

[renegadeimp]

You say those costs pay for the call centre etc etc, but what if hardly anyone called in that year? Seems a strange way to run a profitable business relying on that sort of principle.

[manofmystery]

Its not a reliable way of making profit but pennies make pounds.

 

Just think that your average insurance call center staff is on anywhere from £14,000 - £20,000. + overheads.

 

Never said that I agreed with the charge, especially after having to pay in excess of £100 of them when I moved 3 times in a year!