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Was just charged €35 by AA Insurance to change my address. Is this legal?

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  • 16-12-2020 2:47pm
    #1
    JackieChang
    Registered Users Posts: 1,494 ✭✭✭


    What the fecking hell?

    Do all insurers do this?

    Apparently it's €35 because they have to print out a new certificate. What's that...15cent worth of paper? And a stamp.

    I am sick of getting raped by random fees. I am in the process of leaving Ulster Bank because they've charged me up the bum with fees this year.

    I feel like I need to report this to a regulatory body or something.

    Or am I over reacting? Is this normal?


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    #2
    macplaxton
    Moderators, Motoring & Transport Moderators Posts: 2,957 Mod ✭✭✭✭macplaxton


    JackieChang wrote: »
    Do all insurers do this?

    Pretty much.
    JackieChang wrote: »
    Or am I over reacting?

    Nope. Bandits so they are.


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    #3
    Bikerman2019
    Closed Accounts Posts: 992 ✭✭✭Bikerman2019


    You are not paying for the printing.
    You are paying the wages of the staff member to sit there to do it. Their wages, holiday pay, the rent for the office, the rates for the office, etc etc.


    Maybe that is what you call a ripoff but i dont think the staff waiting for your call work for free.


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    #4
    kalych
    Registered Users Posts: 344 ✭✭kalych


    Bikerman2019 wrote: »
    You are not paying for the printing.
    You are paying the wages of the staff member to sit there to do it. Their wages, holiday pay, the rent for the office, the rates for the office, etc etc.


    Maybe that is what you call a ripoff but i dont think the staff waiting for your call work for free.

    Or they could...you know...have an online form programmed by 1 contractor and made available to all users to be able to change their details themselves. This would remove the need for expensive staff manning the phones and their holidays...just a thought.


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    #5
    Bikerman2019
    Closed Accounts Posts: 992 ✭✭✭Bikerman2019


    So the contractor would do it for free as well? what about the bandwidth for the site? Or the staff who put it in the envelope? Or the postman who delivers it to you? So many costs in business, you have no idea.



    Have a read of your policy that you bought. If it says there are amendment fees and you agreed to it, whining on boards about it now is kinds pointless. If it does not outline the fees, then ring them and complain. Oh crap, that requires a person to be there to talk to you. Maybe they should work for free aswell.


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    #6
    Tom1991
    Registered Users Posts: 455 ✭✭Tom1991


    You also are assessed by your address for risk purposes but AA are only a broker so probably have to spend time going back and forth with your underwriter I know certain insurers let you change car or address free as long as the risk stays relatively the same.


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    #7
    Bikerman2019
    Closed Accounts Posts: 992 ✭✭✭Bikerman2019


    Tom1991 wrote: »
    You also are assessed by your address for risk purposes but AA are only a broker so probably have to spend time going back and forth with your underwriter I know certain insurers let you change car or address free as long as the risk stays relatively the same.
    That is true as well. It may actually entail said phone person, ringing the insurance company to manually update the details. Nothing is free in this life, staff are one of the highest expenses a business can have.


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    #8
    coylemj
    Registered Users Posts: 25,345 ✭✭✭✭coylemj


    AA is a broker, they probably pare their margins to the bone to get your business but once they have an opportunity to make some extra profit on the side, they won't pass up on it.

    It's also possible that some of that charge reflects your actual change of address i.e. the insurer perceives an increased risk at your new location. But as most insurers would waive a charge that small, it's most likely an AA 'admin' charge.


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    #9
    kalych
    Registered Users Posts: 344 ✭✭kalych


    Bikerman2019 wrote: »
    So the contractor would do it for free as well? what about the bandwidth for the site? Or the staff who put it in the envelope? Or the postman who delivers it to you? So many costs in business, you have no idea.

    Splitting those costs across a thousand address change requests, which is the whole point of automation. Right. Cause you know if i run a business or not.


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    #10
    runawaybishop
    Registered Users Posts: 9,500 ✭✭✭runawaybishop


    It's like Ryanair. Cheap bare bones service, pay through the nose for anything else.


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    #11
    looksee
    Registered Users Posts: 28,096 ✭✭✭✭looksee


    We moved from one county to another, and the car policies went up. Then we moved back to the original county, but they didn't go down again... (I know there was an excuse, just can't recall it). Edit, though I don't think we were charged by the broker.


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    #12
    blackbox
    Registered Users Posts: 4,133 ✭✭✭blackbox


    Liberty did the same to me with only a couple of weeks left to run. I think they actually increased the premium as well.

    I switched.


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    #13
    ted1
    Registered Users Posts: 23,293 ✭✭✭✭ted1


    JackieChang wrote: »
    What the fecking hell?

    Do all insurers do this?

    Apparently it's €35 because they have to print out a new certificate. What's that...15cent worth of paper? And a stamp.

    I am sick of getting raped by random fees. I am in the process of leaving Ulster Bank because they've charged me up the bum with fees this year.

    I feel like I need to report this to a regulatory body or something.

    Or am I over reacting? Is this normal?

    1 euro for a stamp
    15c for paper
    + cost of rent + power and heat + commercial rates + cost of providing phone or IT system + staff costs to update file..

    Yes you are over reacting. The fee would have been listed in your policy details


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    #14
    ted1
    Registered Users Posts: 23,293 ✭✭✭✭ted1


    blackbox wrote: »
    Liberty did the same to me with only a couple of weeks left to run. I think they actually increased the premium as well.

    I switched.

    Addresses affect Car insurance a lot. Some places are more prone to claims


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    #15
    grogi
    Registered Users Posts: 8,615 ✭✭✭grogi


    While legal, it never stop to surprise how willing people are to offload their hard earned cash for a ripoff like that.

    We are talking about a big organization whose core business is just do that - print and ship those certs. The premium you get charged should include reasonable amount of admin work afterwards. 95% if not more of policies won't have anything altered at all.


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    #16
    beachhead
    Registered Users Posts: 2,312 ✭✭✭beachhead


    JackieChang wrote: »
    What the fecking hell?

    Do all insurers do this?

    Apparently it's €35 because they have to print out a new certificate. What's that...15cent worth of paper? And a stamp.

    I am sick of getting raped by random fees. I am in the process of leaving Ulster Bank because they've charged me up the bum with fees this year.

    I feel like I need to report this to a regulatory body or something.

    Or am I over reacting? Is this normal?

    Check your charges information some budget(online) insurance companies charge to say hello to them.Others will allow one alteration per year


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    #17
    grogi
    Registered Users Posts: 8,615 ✭✭✭grogi


    beachhead wrote: »
    Check your charges information some budget(online) insurance companies charge to say hello to them.Others will allow one alteration per year

    Me just thinks that, as with the credit cost, the insurance quote should also metnion how much a standarized amount of admin work will cost: two temporary vehicle substitution, a change of address and suspending/resuming a policy.


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    #18
    Eggs For Dinner
    Registered Users Posts: 2,941 ✭✭✭Eggs For Dinner


    grogi wrote: »
    Me just thinks that, as with the credit cost, the insurance quote should also metnion how much a standarized amount of admin work will cost: two temporary vehicle substitution, a change of address and suspending/resuming a policy.

    The additional admin cost for alterations is usually stated in your policy document, which is available to read online long before you get a quote or take out a policy. You don't need the type of event listed, only that if you alter your circumstances, it will incur a charge.

    The vast majority of policies go unaltered throughout the year and the admin cost for handling the new business or renewal handling for those policies is built in to the premium.

    Insurance brokers work on very tight margins and private car insurance is not very profitable for them (I'm not talking about insurance companies). There is a huge turnover of clients every month with vast numbers of clients switching to other providers and vast numbers of new clients coming in. The costs of processing all of this needs to be paid for.

    Bottom line. If a broker charges you an admin cost, it must be described in their Terms of Business given to you when you get your policy. If an insurer charges you for an alteration in your circumstances, it will be because their underwriting analysis will tell them it is warranted


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    #19
    smellyoldboot
    Banned (with Prison Access) Posts: 1,075 ✭✭✭smellyoldboot


    JackieChang wrote: »
    What the fecking hell?

    Do all insurers do this?

    Apparently it's €35 because they have to print out a new certificate. What's that...15cent worth of paper? And a stamp.

    I am sick of getting raped by random fees. I am in the process of leaving Ulster Bank because they've charged me up the bum with fees this year.

    I feel like I need to report this to a regulatory body or something.

    Or am I over reacting? Is this normal?

    Seems normal, had to pay the same to get my policy changes to include a full licence. Pretty much the same as handing a form to a doctor/solicitor to sign. Money for jam but the cosy old boys club dictates we must pay up and deal with these gangsters.


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    #20
    8-10
    Registered Users Posts: 13,329 ✭✭✭✭8-10


    grogi wrote: »
    While legal, it never stop to surprise how willing people are to offload their hard earned cash for a ripoff like that.

    We are talking about a big organization whose core business is just do that - print and ship those certs. The premium you get charged should include reasonable amount of admin work afterwards. 95% if not more of policies won't have anything altered at all.

    If there are 2 options, one with basic premium cost and an address change add-on of €35 if it happens during the policy, and the other with a reasonable amount of admin fees added to the cost of premium up front, why would people go with the second option if any alteration at all would only happen 5% of the time?


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    #21
    screamer
    Registered Users Posts: 6,133 ✭✭✭screamer


    Why use brokers at all? Go direct to the insurance companies to get the best price. You’ll always pay more if using a broker as they add on their admin charges


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    #22
    grogi
    Registered Users Posts: 8,615 ✭✭✭grogi


    8-10 wrote: »
    If there are 2 options, one with basic premium cost and an address change add-on of €35 if it happens during the policy, and the other with a reasonable amount of admin fees added to the cost of premium up front, why would people go with the second option if any alteration at all would only happen 5% of the time?

    Well, that's the whole idea of getting insurance, right? You pay a bit just not to be in deep siht should something rare happens...


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    #23
    grogi
    Registered Users Posts: 8,615 ✭✭✭grogi


    Eggs For Dinner wrote: »
    The additional admin cost for alterations is usually stated in your policy document, which is available to read online long before you get a quote or take out a policy. You don't need the type of event listed, only that if you alter your circumstances, it will incur a charge.

    I know they are - well hidden inbetween the lines ;)

    What I mean is the company being obliged to quote the price for those changes side by side with the premium.


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    #24
    Eggs For Dinner
    Registered Users Posts: 2,941 ✭✭✭Eggs For Dinner


    grogi wrote: »
    I know they are - well hidden inbetween the lines ;)

    What I mean is the company being obliged to quote the price for those changes side by side with the premium.

    Brokers have been obliged to disclose their fees for many years now. This is separate to the premium charged by insurers


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