Yesterday we told you about Nationwide Building Society’s admission about charging loyal home cover policyholders twice as much as it does new customers – and today the wider industry has fallen under the media spotlight for supposedly hiding fees from consumers.
A report in the Daily Mail has revealed that motor insurance providers charge as much as £75 during renewal, with loyal customers paying for ‘hidden’ administration fees. These are often found in the policy fine print or in online terms and conditions, according to the report.
Among the insurers identified as charging renewal fees were Principal Insurance (up to £75), Collingwood (Young Driver, £65), 1st Central (£50), Swinton (£25), Hastings Direct (£20), and Saga (£20).
The report cited an Association of British Insurers (ABI) spokesperson who said he doesn’t know of any member in the UK charging renewal fees, except in the case of policies underwritten by a different provider.
Steve White, British Insurance Brokers’ Association chief executive, said general insurance brokers deliver a service for which they can charge a fee. “However, as regulated entities, they are required to provide customers with details of any fees or charges made,” he noted, as quoted by the report.
As insurance professionals we want to know your opinion on renewal fees? Is it fair for consumers to face these charges?
Article is care of www.insurancebusinessmag.com the original article can be found here give them a follow for all your insurance news.