Insurance Renewal - Be Aware Of Hidden Broker Fee

[FROSTYBALLS]

In the April edition of Which?, they feature a member who uncovered a huge brokerage charge in his renewal premium.

The member noticed last year his renewal with the AA had increased from around £500 to £619. After a series of phone calls to the AA, he was told the brokerage charge - which was approx £45 when he took out the policy - had risen to £200, driving up his premium.

The AA admitted that new business is heavily discounted, whether bought direct, through price comparison sites or through a broker, and is frequently loss-making.

At renewal, the AA said the brokerage charge (commission) would cover not just profit, but overheads such as development and marketing of policies, sales and online activities, claim handling and administration.

Although the AA eventually offered to reduce the renewal premium by £155, the member went elsewhere.

Just be wary at renewal time of heavily increased premiums.

[Mike169]

Heyyyyy FROSTYBALLS, i just renewed my insurance which is with Toyota's own insurance company, and it went down to less than £300 even though i was on max. no claims bonus but i dropped my mileage per annum by 2000 miles and being a member of this club helps keep the premium down because of the club discount.