Are you paying sneaky home insurance admin fees?
Home insurance is one of those necessary evil type things, but sometimes getting a quote isn’t all the information you need. Our friends over at Which!!! have undertaken an investigative foray into the sneaky admin charges some insurers levy on your policy after you’ve signed on the dotted line.
Which!!! analysed the sneaky fees of 36 major insurers and found that half charge an ‘adjustment fee’ for making changes to your policy, such as updating your address. The smallest of these fees (where charged) was £8.48 with Aviva and went up to £25 with Castle Cover and Rias.
Which!!! gave each insurer marks out of 100, and two companies actually got full marks- both Barclays and Lloyds Banking Group don’t charge any fees and also pay generous switching fees – an amount a provider pays towards any charges you face for switching to it before your current policy ends- and neither levy an interest charge for paying by monthly instalments.
Endsleigh came bottom with a score of 43%, and Admiral followed closely with 44%. Both these insurers charge hefty fees- Endsleigh charges 39.7& APR for monthly payments and £20 for practically everything else- the highest fee for a duplicate document. Admiral is one of only four insurers who charge a fee if you pay for your insurance by credit card; consumer rights regulations state that these fees must be no more than it costs the company to process that payment type, but at a flat rate of £5.95, Which!!! think this is unlikely to be reflective of Admiral’s costs.
Which!!! also found it’s not always easy to check what fees you might be charged in advance. Most insurers include their fees in the policy documents on their websites or in a FAQs section, but Bradford & Bingley, Endsleigh, Nationwide, the Post Office and Prudential all required a full quote before setting out their fees. Which seems a little more than sneaky to us.
The top and bottom ten insurers, as rated by Which!!! are as follows:
3 Age UK
6 M&S Bank
7 NFU Mutual
10 Insure 4 Retirement
5 Bradford and Bingley
6 Co-operative Insurance
8 The AA
9 Post Office Insurance
10 Esure/Sheila’s Wheels