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Policy amendment fees
This is a flat fee charged by your insurance company/intermediary (sometimes both), when you make changes to your policy (even if there is no extra premium due):
• Change of car.
• Change of drivers.
• Change of address.
• Policy cancellation.
If you have an additional premium for:
• More expensive/higher rated cars.
• Higher rated change of driver.
• Move to higher rated post code.
The policy amendment fee is added on top of your additional premium.
Examples:
• Liverpool Victoria no charge.
• E Sure £17.50.
• Direct Line £17.85.
• Admiral £17.50.
• AA £30 (Hard to justify).
• Kwik Fit £25 (Hard to justify).
• Tesco £15.75.
Comments
The only justification for this charge is to increase the companies profits. £25 plus on top of your extra premium for no obvious reason is not acceptable.
The above charges are on top of any additional premium charged by the insurance company for a higher rated car etc. and in the case of intermediaries who receive a percentage of any additional premium charged by the insurance company plus their own service charge i.e. If you change your car with the AA and the insurance company charge you £50 additional premium the AA will receive around 15% in commission on top of their service charge of £30 and therefore out of a total premium paid of £80 the AA take £37.50 in charges and commission, for what usually amounts to a few minutes work by a call centre clerk. |
