uSwitch campaigns against mid-term adjustment fees

If you have ever phoned your motor insurers to amend a minor detail, such as a change of name or address, you may have been shocked to find that not only will your premium be adjusted but you will also be charged a mid-term adjustment fee, which averages out at around £22.

Research carried out by uSwitch.com has revealed that 14 million of us boost the insurance industry’s profits by a staggering £333 million a year. Not so long ago, this practice was unheard of and now LV (Liverpool Victoria) are making a stand by not charging their customers for amending names, addresses etc. or for switching from fully comprehensive cover to third party and vice versa. Prior to this, the company levied a charge of £15.

uSwitch’s Ashton Berkhauer hopes that other insurance companies will follow suit and remove the fees which he feels are “wholly unfair and excessive”.

Another area where uSwitch feel the motorist is being unfairly penalised is the cancellation of a policy part-way through the year, often treated by insurers as a special case mid-term adjustment, where the fee charged can be so high that it is not worth cancelling.

Unfortunately, the levying of fees for any adjustment is wholly legal. When the old "Insurance: Conduct of Business" was changed on the 6th of January this year to the new "Insurance: Conduct of Business Sourcebook", section 2.10 which had governed excessive charges to retail customers was removed, to “simplify” the rules, giving insurers carte blanche to charge as much as they want. uSwitch in the meantime is continuing its campaign for motorists to be treated fairly.