# Administration fees



## gordonpuk (Mar 14, 2010)

Is it just me that gets P'd off with Insurance/Brokers charging these fees on top of the premium?
To me it's like putting your shopping through the till at Tesco and being told " That's £70 for the shopping and £6 for putting it through the till"


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## bigmc (Mar 22, 2010)

It annoys me too, said it before and will say it again no doubt but the insurance industry is corrupt and a licence to print money.
Tesco **** me off trying to coerce you into the self check out lanes, las one that said it to me I replied "do I get a discount for doing your job?" Should've seen her face.


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## Shiny (Apr 23, 2007)

The difference, Tesco DON'T have to tell you their fees, unlike Brokers who have to be transparent with their charges.

The premium is not the Brokers, it is what the Broker has to pay to the Insurer and the Insurer then pays the Broker a small commission for the business.

In the good old days, motor insurance used to pay 17.5% commission, we used to quote from manuals and there were no regulatory costs.

These days, motor commission is 10%, you have to pay £ks a month for licence fees to use your software to even get quotes, pay for continuous training programmes and lets not forget the £ks Brokers now have to pay to the FSA each year for regulation so they can be fined when things go wrong.

Brokers are (or should be) professionals, yet unlike solicitors, accountants etc, are frowned upon when a relatively small fee of £25 is charged.

Commission alone is not enough to cover the costs involved in running a brokerage, so fees help towards the additional costs of regulation, licences and so on.

Most businesses wouldn't survive on 10% commission. I'm sure Tesco make more than 10% of their counter sales.

Granted, some fees do seem excessive by some Brokers, but on the other hand i'd be the first to admit that we are too slack with our own fees and often don't charge enough.

Don't forget, fees are are detailed in the TOBA you receive when you take out the policy. If you aren't happy with the TOBA, don't take out the policy.

The total of commission *and* Fees works about around 15% of our turnover. From that 15% we have to pay everything, rent, rates, wages, licences, regulation fees, electric, water etc. If there is anything left, i can draw a salary.

You can name pretty much any business (maybe apart from a petrol station) , and i bet they are operating at more than 15% income from their turnover. And when it comes to a "professional" business, I bet "Brokers" are at the bottom of the earning scales!


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## skyinsurance (Jun 9, 2010)

gordonpuk said:


> Is it just me that gets P'd off with Insurance/Brokers charging these fees on top of the premium?
> To me it's like putting your shopping through the till at Tesco and being told " That's £70 for the shopping and £6 for putting it through the till"


From another perspective and generally speaking brokers have access to the best deals or to insurers who do not deal with the general public. You can see significant savings by using a broker and a broker will only survive if they charge fees and commission.

Ollie
Sky Insurance

http://www.skyinsurance.co.uk/car-club-insurance.html


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## chunkytfg (Feb 1, 2009)

Got to Love NFU! 

Never been charged a 'fee' including adding second vehicle for a week, change of reg number, adding Brother in law for the weekend etc etc and when I wrote my car off I got £800 over market value!!


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