administration fee

A

annR

Registered User
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I changed cars recently and my insurance premium fell. So - great, they were to refund me the difference. It wasn't much of the difference but I was still pleased. Then I get the letter . . ..the refund on my premium was reduced by 25 Euros for 'administration'.

This seems really unfair to me. Can they just fling in extra charges like this, why should I not get the premium I was quoted and therefore the full discount?
 
Tell them (whether it's true or not) that you have a problem with this and that ergo you're going to terminate the policy and move to another insurer who's quoted you far cheaper — unless they withdraw the charge.

They're perfectly entitled to apply such a charge, and I'm quite sure it's covered vaguely, somewhere deep in your small print — but I'd be surprised if they didn't offer some "compromise". What have you got to lose...? ;)
 
check the policy conditions and if it is not mentioned, then write to the CEO asking him to point out where in the policy is it mentioned. On receipt of his/her reply, is still not satisfied write again to say that you are referring to the insurance ombudsman and do so.That is of course assuming that you are dealing with the company directly. Some brokers do charge such fees as they feel that they are not getting enough commission from the insurers.
 
It is a broker but that doesn't really matter to my mind, it still shouldn't happen.
 
If's its a brokers you should have received their " Terms of Business" Letter. This should contain the fact that they charge an admin fee of €25.00. Brokers receive commission of 5% on motor policys and the fact your premium reduced by your change in vehicle means your broker had to refund some of the commission to the insurance company that was already paid to him by the Ins Co when you took out the policy.

Do you expect the insurance broker to inform your insurance company of your change of vehicle, return your old insurance certificate, obtain your new certificate, post your new certificate to you, and all for a loss?
 
I expect to pay the premium I was quoted, and I expect them to earn their commission from the insurer not from charging me 25Euros administration. I don't have their terms of business handy but must look into that.
 
Good on you Ann!!

i would expect the same from the broker. The fact that his commission is reduced has no bearing on the matter. I suppose you have learned a lesson and can deal direct with insurance company from now on. In fact, you can get a different (lower) premium on line, to that direct by phone or in person, to that via a broker.
 
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