Insurance Scam?

[Jammy-R6]

Right want to keep it short because I cant really be bothered to type much..

Anyway, while trying to get the lowest insurance I rang an insurer who asked me my lowest quote - I said £800 ish..

So, they turned round and said they can do it for £675, ok great so I went for it.

Had my paperwork through today and it said my total premium payable was £550! I am paying by installments so expected a bit of interest to pay.

I payed £177 for deposit, and £60 a month for 10 months, which works out as £777 in total.

Alarm bells rang as £550 premium and total payable of £777 indicates a mid 40% interest rate.

So I gave them a ring and they said the premium IS £550, but there was also a £125 admin charge for setting up the policy. WTF is that?! I questioned this to be told it was an admin charge and I was told about it.. I think not! If I was told I was going to be charged 3 days wages for fuck all Id of told them to bollocks! They told me the price from the underwriter was 675... not £550 with a chunk on added for themselves.

They couldnt even tell me what the admin charge was for, just I was told about it and it was in my documents.

I want my money back! Seems to me like they have had a cheap price from the underwriter and thought.. hmm if we beat his last quote by a few quid hes gona go with us and we can make a bit on the side out of him...

Where do I stand? Me old man rang up for me and gave them a bit of stick.. I want my hard earned back, I dont earn enough to hand it out like that!

[JGY6000]

if its within 14 days of taking out the polocty then you are entiteled to a FULL refund

[McJamweasel]

You were quoted £675. £550 premium plus £125 admin fee is.....£675. Where is the problem? You were told about it as you were quoted the full cost. Yes, the admin may be steep but then so is over £500 for the premium in the first place.
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BCF: Be yourself, just don't be an arse.

[R4nger]

Insurance companies record all conversations as far as I am aware. This serves a purpose of protecting the interests of the insurance company and yourself. I would just say you was never informed of the administration charges and that you want a full refund if that is what you truly want.

Also, there should be a cooling off period lasting a couple of weeks. I would expect to see all your money back and I would be surprised if you don't.

[Jammy-R6]

[Jammy-R6]

Dont want to cancel the policy, just want to pay the TRUE cost the underwriter quoted, so want the phony admin charge back, who charges their customers for bringing you their custom!?

[McJamweasel]

[Jammy-R6]

[McJamweasel]

Fine, cancel your £675 policy and go take your £800 one instead (like there won't be a huge 'admin' fee on that too ). Talk about cutting your nose off....
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BCF: Be yourself, just don't be an arse.

[Jammy-R6]

Well dummy.. id push other companies that I know used the same underwriter that wernt such money grabbing bastards (or not as much).

[karen_moomin]

If you looked into how much you were "ripped off" in all aspects then you'd never buy anything....companies are there to make money, if you were happy with the original quote why does it matter?

Just because others might not explicitly tell you their admin fee, I assure you they are making their cut.

[McJamweasel]

[Ste]

[Kickstart]

Hi

The £125 is probably there costs / profit margin. Covering advertising, phones, staff, recording calls, postage,etc.

Surprised they let slip what the actual cost from the underwriter was.

Not really any different to buying a bike. Doubt the ex factory price of a typical Japanese bike is as much as 60% of the on the road cost.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[st3v3]

[iooi]

If they quoted you 675 then as has been said, how it is made up is not a issue. If they told you that there was a 125 admin charge in the call would it have made any difference ? If it would then ask for a copy of the call which you can do under the DPA. You may have to pay for it. If its not mentioned, then you could try the ins ombudsman for excessive charges, but i doubt that it would stick.

At the end of the day it was the cheapest quote you got, so to contest too much is not really in your best interest. On which point it may well have been cheaper to use a overdraft or credit card to pay off in one go.....
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Just because my bike was A DIVVY, does not mean i am......

[trevoriv]

If you have gone through an insurance broker then that admin charge could be the brokers commission probaly at the 15% mark with a small admin charge of £40 on top of that with the £550 being the insurers figure net of any commission.

Running a brokerage costs a fortune!

It's unusual that seperate figures have been mentioned at all and im pretty sure that there will be no 'underwriter' involved, as far as i am aware all private motor insurance are auto rated, no-one does manual rated single vehicle private policies any more.

Sounds like their paperwork is a bit shoddy to be fair. I can't see you getting them to back down as if they told you the premium was £675 then they haven't mis-sold the Policy. It could be 1p for the insurance and £674.99 admin fee, you still have to pay the quoted figure.

[Mooncatt]

as most of you will know by now i work for an insurance company, now payin an admin fee to set up a policy is utter shite, i have never heard of this before in my entire history of working in insurance. name and shame please.
you should have a "cooling off" period in which case you can cancel free of charge. tell them to shove it up their arse holes as far as humanly possible mate.
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current bike...CBR400RR
"you always need more chicken"

[karen_moomin]

[Minty]

As per Karen.

Direct Insurers do not charge admin fees. Brokers do.

I would expect an insurance advisor to know that?

Name and shame your company Mooncat!!!!!
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My fingers smell of your mum.

[Mooncatt]

well i have spoken to a few of my work mates about this and for example you set up a policy with a broker and they tell you the premium is £300 that will include the percentage the broker will take but it only should be a small percentage not £125 thats extortionate and they should not be telling you its an admin fee because it isnt its just what they take. an admin fee is something you are charged to make changes to your policy e.g change of vehicle or change of address. now i dont condone admin fees i think is utter crap and cant be justified. but £125 just to set the policy up is ridiculous. anyway all that been said i always go to a direct insurer that way in the event of a claim there is no middle man to deal with or anything like that.
hope that helps a little
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current bike...CBR400RR
"you always need more chicken"

[Minty]

It's all about dressing the quote, that is all. Just to tempt people in.

Like on ebay - the item is only a quid but delivery is a tenner.

Look at the total price - if you like it, buy it. If not, walk on.

I dont care if the insurance was £5 and the admin fee £670. It is still the cheapest and therefore I want it.
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My fingers smell of your mum.

[Ste]

Mooncatt, which insurer do you work for?

[Minty]

.......
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My fingers smell of your mum.

[carvell]